Screening Stocks with Turnover, Rising KDJ, and Price Above the Five-Day Average

Summary

This stock-selection rule screens for turnover between 3% and 12%, a rising K line from the KDJ indicator, and a closing price above the five-day moving average. The document interprets the turnover range as a market-activity filter, the rising K value as improving technical momentum, and the price position above its short average as a sign of relative strength. It includes formula and Python examples that express these conditions using current and prior observations.

The article provides a rule specification rather than evidence of efficacy: it reports no backtest, returns, benchmark, or transaction-cost analysis. It also acknowledges that the screen relies on technical and trading-activity data, omits financial and industry fundamentals, and may misread market conditions. Suggested extensions include fundamental measures, additional indicators, trading volume or value, and broader market context. The described conditions identify candidates only; the document does not specify entry timing, exits, position sizing, or a complete trading system.

Key ideas

• The screen requires turnover between 3% and 12% and a rising KDJ K value.
• It also requires the closing price to exceed the five-day moving average.
• The document frames these conditions as activity and short-term strength filters.
• No backtest or performance evidence is provided.
• It notes that the rule omits fundamentals and recommends broader risk and market analysis.

Tags

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