Selecting Mainland Chinese Stocks by Range and Rising KDJ

Summary

The document outlines a technical stock screen for mainland Chinese equities. It excludes Beijing-listed stocks, requires a daily high-low range above 1% relative to the prior close, and selects stocks whose KDJ K value has risen from the previous observation. It provides corresponding formula and Python examples, making the conditions concrete, though the document does not define a holding period, ranking method, portfolio construction, or exit rules.

The accompanying discussion warns that KDJ can lag and that a screen based only on volatility and technical indicators omits company fundamentals. It suggests combining the signal with other inputs, such as volume or valuation measures, and considering stocks across different sizes. No backtest results or evidence of profitability are supplied, and the stated rule and implementation should be checked for consistent market and field definitions before use.

Key ideas

• The screen excludes Beijing stocks and requires a high-low range above 1% relative to the previous close.
• It selects stocks with a rising KDJ K value compared with the prior observation.
• The document provides formula and Python examples of the selection conditions.
• It cautions that KDJ may lag and that the screen omits fundamental information.
• No backtest or trading performance evidence is provided.

Tags

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