Screening Stocks by Volatility, a 10-Day Average, and Rising KDJ

Summary

This proposed stock screen looks for prior-session amplitude above the stated threshold, an opening price within a narrow band around the 10-day moving average, and a rising K value in the KDJ indicator that remains below its ceiling. The explanation treats elevated amplitude as evidence of short-term movement, proximity to the moving average as a possible adjustment phase, and a rising K value as strengthening short-term price momentum. Formula and Python examples show how the conditions can be combined and how candidates may be ranked by volume.

The post provides no backtest, comparison, or measured outcomes, so it does not establish that the selection rules identify strong candidates. It cautions that the logic is simple, omits fundamentals, and relies heavily on technical indicators; volatile stocks can carry greater risk. The amplitude wording and implementation also warrant careful interpretation. The author suggests combining additional fundamental and technical filters and applying stronger risk controls, but does not evaluate these changes.

Key ideas

• The screen combines prior-session amplitude, opening-price proximity to a 10-day moving average, and a rising KDJ K value.
• The stated rationale links the conditions to short-term volatility, adjustment, and possible momentum.
• The examples combine the filters and optionally rank qualifying stocks by volume.
• No performance evidence is provided, and the post warns against relying on a single indicator or ignoring risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.