Stock Screen Using Amplitude, Limit-Up History, and a Low KDJ Reading

Summary

The document proposes screening equities for daily price amplitude above a stated threshold, at least two limit-up events over a 500-day lookback, and a K-line reading below 20, interpreted as a low stochastic-style KDJ value. It characterizes the combination as a way to find volatile shares with prior sharp gains that may be attempting a rebound after weakness. Formula references describe amplitude, a rolling count of limit-up events, and KDJ components; sample code sketches a data-based screen.

The document offers no backtest, selected-stock examples, or return evidence. It warns that the approach emphasizes short-term technical behavior and may misread market conditions; it recommends adding fundamentals and other indicators. Implementation details are inconsistent or ambiguous: the amplitude threshold's scale is unclear, and the KDJ calculation and sample code do not clearly match the stated K threshold. Data quality and formula alignment should be checked before interpreting any output as a valid signal.

Key ideas

• The proposed screen combines price amplitude, at least two limit-up events over 500 days, and a K reading below 20.
• The author interprets this combination as a possible way to identify volatile stocks showing rebound potential.
• The document supplies formula references and sample implementation logic but no performance evidence.
• The threshold scale and KDJ implementation are ambiguous, so the formulas require validation before use.
• The screen focuses on technical conditions and may benefit from fundamental context and additional indicators.

Tags

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