Stock Screening with Amplitude, KDJ, and Lagged MACD

Summary

This Chinese stock-screening rule combines three technical conditions: amplitude above one, a KDJ value below twenty, and MACD below zero two sessions earlier. The document presents the conditions as a way to narrow the stock universe and uses the lagged MACD reading as an additional signal about price direction. It also gives example implementations for a screening formula and a Python workflow that sorts selected names by percentage change.

The article does not report a backtest, returns, or other evidence that the filter predicts performance. It cautions that individual-stock volatility, short-term manipulation, and MACD lag or failure can undermine the screen. It suggests adding other technical or fundamental measures, but offers no tested refinement. The rule is therefore a screening recipe rather than a validated trading strategy; its usefulness depends on precise indicator definitions, data quality, and subsequent evaluation.

Key ideas

• The screen requires amplitude above one and KDJ below twenty.
• It also checks whether MACD was below zero two sessions earlier.
• The example workflow ranks selected stocks by percentage change.
• The document provides no performance test and notes that MACD may lag or fail.

Tags

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