Screening Stocks with Amplitude, KDJ, and Ten-Day Returns

Summary

This stock-selection rule combines price amplitude, a low K value from the KDJ indicator, and positive but capped ten-day price performance. The stated conditions require amplitude above one, K below 20, and a ten-day gain above zero but below 35. The document presents the screen as a way to find volatile stocks that are also rising, and includes example implementations in a Chinese stock platform and Python.

It cautions that the rule uses technical data alone and omits fundamentals, industry characteristics, and other factors. It proposes broadening the analysis with company and industry information, market value, PEG, RSI, and MACD, but supplies no test results showing that these additions improve returns. The stated thresholds and code also need careful interpretation and validation against the intended data conventions before use. The screen is a short-term selection heuristic, not a demonstrated long-term investment method.

Key ideas

• The screen selects stocks using amplitude, KDJ K below 20, and positive ten-day returns below 35.
• Its rationale is to combine price movement with evidence of a recent gain.
• The document acknowledges that technical-only screening omits fundamentals and industry context.
• It suggests adding fundamental and technical factors but provides no evidence that these improve results.

Tags

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