Screening Stocks with Amplitude, Turnover, and a Fresh KDJ Golden Cross

Summary

This Chinese stock-screening note combines three conditions: amplitude above 1, prior-day actual turnover between 3% and 28%, and a newly formed KDJ golden cross, where the K line crosses above the D line. The author presents amplitude and turnover as filters for trading activity and uses the crossover as a possible short-term entry signal. Sample formula and Python snippets illustrate the intended combination, though the turnover calculation in the examples appears to use a volume ratio rather than actual turnover, and the amplitude threshold’s units are not clearly reconciled.

The note offers no backtest or performance evidence. It cautions that a KDJ crossover does not ensure a favorable price move and does not account for company financials or industry prospects. It suggests adding other indicators and fundamental analysis to improve the selection process. The screen should therefore be understood as a technical hypothesis; its signal definitions and timing need to be clarified and tested before drawing conclusions about its usefulness.

Key ideas

• The screen requires amplitude above 1, prior-day turnover from 3% to 28%, and a newly formed KDJ golden cross.
• The crossover is treated as a possible short-term buy signal, not as confirmation of future gains.
• The examples do not clearly match the turnover rule because they use a volume ratio calculation.
• No backtest or performance evidence is provided.
• The author recommends adding other indicators and fundamental analysis, while the signal definitions need clarification.

Tags

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