Screening Stocks for a Fresh KDJ Crossover, Wide Range, and Positive P/E

Summary

This document outlines a stock-selection filter requiring a daily high-low range above one percent, a newly formed KDJ crossover, and a positive price-to-earnings ratio. The crossover is intended to identify a possible shift toward upward momentum, while the range criterion selects more volatile stocks and positive P/E excludes companies with negative earnings under that measure. Indicator formulas and example code are included to illustrate the conditions.

The article does not provide a backtest, sample, or performance statistics, so its rationale is not supported by reported evidence. It notes that the rules can overlook business and financial risks, that a fresh crossover may arrive after a price has already risen, and that P/E alone gives an incomplete valuation picture. It suggests combining additional fundamental and technical measures, but these are proposals rather than tested improvements.

Key ideas

• The screen combines a daily range above one percent with a newly formed KDJ crossover.
• A positive P/E ratio is used as a basic valuation filter.
• The article treats the crossover as a possible momentum signal, not a guarantee of further gains.
• It warns that the screen omits company fundamentals and may select stocks after much of a rise has occurred.
• No historical performance evidence is reported.

Tags

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