Selecting Stocks with Range, KDJ Crossover, and Two-Day High Filters

Summary

This stock selection rule combines three daily conditions: price range exceeds 1%, the KDJ indicator has just formed a bullish crossover, and the day’s high matches the highest high over the current and previous day. The article presents the combination as a way to find volatile shares with improving momentum and a recent high, and includes example formulas for a screening platform and Python. In the code, the crossover is identified as the J line moving above D after being below it on the prior observation.

The article offers a rationale for each filter but no backtest, sample, or performance measurements to establish that the combination improves returns or reduces risk. It flags market conditions, missing fundamental information, and the short lookback as limitations, and suggests adding other indicators, fundamental filters, or longer historical context. The thresholds and rules are therefore a screening hypothesis, not evidence of a validated strategy.

Key ideas

• The screen requires a daily high-low range greater than 1% of the low.
• It looks for a fresh bullish KDJ crossover, with J moving above D.
• The high must equal the highest high across the current and prior day.
• The article provides screening logic but no test results demonstrating profitability.

Tags

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