Short-Term Stock Screen Using Daily Drawdown, Range, and KDJ

Summary

This note describes a short-term Chinese stock screen requiring daily amplitude above 1, a daily decline between 4% and 5%, and a KDJ K value below 20. It frames the filters as a way to find stocks that have fallen sharply amid sizable price movement and may be candidates for a rebound. Example indicator and Python snippets are included to illustrate selection, though the note does not provide a complete, validated trading system.

The article offers no backtest or performance evidence for the rebound premise. It warns that the screen focuses on short-term price action and a technical indicator while overlooking company fundamentals and longer-term prospects. It also notes the need for risk controls and portfolio diversification. The indicator definitions and sample code may need checking against the intended calculation and data conventions before the rules can be reproduced reliably.

Key ideas

• The screen combines a minimum daily amplitude with a decline between 4% and 5%.
• It requires the KDJ K value to be below 20.
• The proposed use is short-term selection for potential rebounds after sharp declines.
• The note gives sample indicator and data code but no backtest evidence.
• It cautions that technical filters omit fundamentals and require risk controls.

Tags

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