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Stock Screening with Amplitude, KDJ, and Positive Daily MACD

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Summary

This Chinese stock-screening note begins with three technical conditions: amplitude above 1, a KDJ value below 20, and positive daily MACD. It presents these as a way to find shares with subdued short-term readings alongside a positive MACD signal. It then proposes an expanded screen that also requires price-to-earnings below 50, a circulating-market-value rank in the top 10%, and RSI above 50. Example formula and Python snippets illustrate the intended combination, but the document offers no backtest, performance statistics, or other evidence that the screen is profitable.

The author notes that short-term signals may miss longer-term trends and that relying on price movement can yield unstable candidates. Suggested improvements include combining technical measures with valuation and market-capitalization data, and considering entry and exit timing. The signal interpretations are not validated in the text, and the listed rules define a stock-selection screen rather than a fully specified trading system.

Key ideas

  • The initial screen combines amplitude above 1, KDJ below 20, and positive daily MACD.
  • The proposed expanded screen adds valuation, circulating-market-value rank, and RSI filters.
  • The note provides implementation examples but no empirical performance evidence.
  • It warns that short-term indicators can miss longer-term trends and expose candidates to volatility.
  • The screening rules do not specify a complete entry, exit, or risk-management system.

Tags

EquitiesTechnical indicatorsMomentumRisk management

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