Screening Stocks with a Bullish Moving-Average Spread, KDJ Cross, and Fund Flow

Summary

This post describes a Chinese stock-selection screen that ranks stocks by capital intensity, then looks for a newly formed bullish KDJ crossover and a 20-day moving average above the 120-day average. It interprets the ranking as a way to identify stronger buying interest, the crossover as a possible shift toward rising prices, and the moving-average relationship as evidence of stronger short-term than long-term direction. The proposed ranking uses turnover and trading volume, though the post does not define a precise capital-intensity formula.

The author warns that heavy inflows can accompany short-term overextension and that neither a KDJ cross nor a bullish moving-average spread ensures further gains. The final selection description is incomplete: it cuts off after requiring the 20-day average to exceed the 120-day average. No backtest results or performance evidence are supplied, so the screen should be treated as a rule proposal rather than a validated strategy.

Key ideas

• The screen combines a capital-intensity ranking, a recent KDJ bullish crossover, and a 20-day average above the 120-day average.
• Turnover and trading volume are proposed as inputs to the capital-intensity ranking, but its calculation is not specified.
• The post links the KDJ crossover and moving-average spread to possible trend improvement, not guaranteed returns.
• The final selection rule is truncated, and the document provides no performance evidence.

Tags

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