Stock Screening with Daily Range, Large-Order Flow, and KDJ

Summary

This stock-screening proposal combines a daily high-low range greater than 1%, a large-order net-flow measure, and a KDJ K-value change. It describes ranking candidates by KDJ change and frames the approach as a short- or medium-term technical screen. The article also cautions that the rules omit company fundamentals and broad market conditions, and suggests adding those inputs along with other technical or sentiment measures.

The document provides formula and Python examples, but the stated direction of the KDJ change is not fully consistent across the description and examples: the formula compares the prior value with the current value, while the prose refers to growth. It gives no backtest, trade management rules, or performance evidence. The large-order threshold and data handling also need verification. The screen is therefore best treated as an outline for further implementation and testing, with market drawdowns and overreliance on technical signals identified as risks.

Key ideas

• The proposed screen requires a daily high-low range above 1%.
• A large-order net-flow measure is used as a separate candidate filter.
• KDJ K-value change is used to rank or select stocks, though its direction is inconsistent in the examples.
• The article notes that the rules exclude fundamentals and overall market conditions.
• No performance evidence is supplied, and the indicator definitions need validation.

Tags

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