Selecting Stocks with Range, Relative Volume, and a KDJ Golden Cross

Summary

This post proposes a stock screen combining daily price range, relative trading volume, and a newly formed KDJ golden cross. Its explanation frames the range condition as a way to find more volatile stocks, while a bounded volume ratio is intended to select active but not exceptionally active trading. The KDJ turn is presented as a possible reversal or rebound signal. The final description also suggests considering reasonable fundamentals, though the rule is not specified in measurable fundamental terms.

The post includes indicator-formula and Python references, but they contain inconsistencies: the formula’s range comparison and the Python range test point in opposite directions, and the code does not fully align with the stated selection rule. It also gives no backtest or return evidence. The author cautions that the screen may select financially risky stocks and that a price-only indicator misses broader market conditions; suggested refinements include fundamental filters and other technical indicators.

Key ideas

• The screen combines a minimum price-range condition with a bounded volume ratio and a KDJ crossover.
• The post interprets the volume filter as a way to seek active trading without extreme volume.
• A KDJ golden cross is treated as a possible reversal signal, not as proof of future gains.
• The formula and Python example contain inconsistencies that make implementation details uncertain.
• The post provides no performance results and warns about financial and market risks.

Tags

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