Screening Stocks for a Fresh KDJ Crossover and Large Float

Summary

This stock selection rule combines daily amplitude above 1%, a newly formed KDJ crossover, and circulating market capitalization above 10 billion yuan. The crossover is defined as the J line crossing above the D line after not having done so on the previous period. The document includes formula and Python examples intended to implement the screen and place qualifying stocks in a candidate pool.

The rationale is that higher amplitude may signal opportunity, a fresh crossover may indicate improving short-term sentiment, and a large float may reduce some risks associated with very small companies. These are hypotheses rather than demonstrated findings: no backtest or return evidence is given. The document warns that market capitalization alone does not establish company quality and that technical signals may be unreliable. It suggests adding financial growth measures, other indicators, and industry or stock-type filters.

Key ideas

• The screen requires daily amplitude above 1%, a fresh KDJ crossover, and circulating market capitalization above 10 billion yuan.
• A fresh crossover is represented by the J line moving above the D line after being below it.
• The document provides formula and Python examples for constructing the candidate list.
• It reports no performance evidence and cautions that market capitalization and technical signals do not establish investment value.

Tags

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