Screening Stocks with Turnover, KDJ Crossovers, and MACD

Summary

This Chinese stock-selection rule combines a turnover range of 3% to 12%, a newly formed KDJ golden cross, and a positive MACD reading. The article interprets the turnover band as a way to exclude stocks with very low or unusually high activity, the KDJ crossover as a possible trend-turn signal, and positive MACD as evidence of upward directional momentum. It includes indicator formulas and a sample workflow for scanning A-share stocks using daily market data.

The article offers a screening recipe rather than evidence of effectiveness: it reports no backtest, returns, or comparison against a benchmark. Its discussion acknowledges that the criteria are narrow and may miss fundamental conditions or broader industry trends. The example code also approximates the stated conditions using turnover quantiles and compares recent KDJ values, so implementation details may differ from a strict crossover rule. The suggested additions, such as valuation measures or further indicators, would need independent testing to determine whether they improve selection.

Key ideas

• The screen requires turnover between 3% and 12%, a recent KDJ golden cross, and MACD above zero.
• The article treats turnover as an activity filter and the indicators as signals of a possible upward move.
• The sample scan uses historical daily data, but its quantile-based turnover check may differ from a direct current-turnover condition.
• No backtest or performance evidence is supplied, and the rule may omit fundamental and industry context.

Tags

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