Stock Screening by Turnover, KDJ Rise, and Daily Price Change

Summary

This stock-selection rule screens for turnover between 3% and 12%, a rising K value from the KDJ indicator, and a daily price change bounded around the previous close. The article describes these as technical and market-activity filters intended to identify stocks with a favorable recent pattern. It supplies a formula reference and a Python example that groups observations by stock and checks turnover, the latest price change, and the KDJ value against the prior observation.

The article does not provide backtest results or other evidence that the screen predicts returns. Its examples also differ in details: the narrative gives a lower price-change bound of -5%, while the formula and Python example use -2.6%; the formula uses the latest turnover condition, whereas the Python code checks an average. The author cautions that technical indicators rely on historical data and that a narrow price range may not suit all market conditions. Fundamental analysis and market-sensitive thresholds are suggested as possible additions.

Key ideas

• The screen combines turnover between 3% and 12% with a rising KDJ K value.
• It constrains daily price change, though the article gives conflicting lower bounds across its descriptions.
• The code examples implement the conditions using historical price and indicator data.
• No backtest or performance evidence is provided.
• The author notes indicator lag and market-regime sensitivity, and suggests adding fundamental analysis.

Tags

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