Stock Screen Combining Turnover, Rising KDJ, and the 250-Day Average

Summary

This Chinese stock screen selects shares with turnover between 3% and 12%, a rising KDJ K value, and a prior-day closing price above the 250-day moving average. The article frames turnover as a measure of market activity, the rising K line as a short-term momentum signal, and the long moving average as a trend filter. It provides example formula and Python implementations, though the Python sample checks average turnover and compares both of the latest two closes with the moving average.

No backtest, returns, or other empirical support is reported. The author cautions that the screen relies on market and technical data, leaving out company fundamentals and overall market conditions, and may be vulnerable to short-term trading activity. Proposed refinements include adding valuation or other financial measures and supplementary technical indicators. The differences between the stated prior-day rule and the Python sample should be resolved before implementation, and the screen alone does not establish risk controls or expected performance.

Key ideas

• The stated screen requires turnover between 3% and 12%, a rising KDJ K value, and prior-day close above the 250-day average.
• The moving average acts as a long-term trend filter, while the KDJ change captures short-term direction.
• The Python example adds conditions beyond the written rule, including average turnover and checks on two recent closes.
• The article provides no performance evidence and warns that fundamentals, market conditions, and risk controls are missing.

Tags

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