Stock Screening with Intraday Declines and Rising KDJ K Values

Summary

This screening proposal selects stocks whose daily amplitude exceeds a threshold, whose intraday low falls within a specified decline band, and whose KDJ K value is rising. The note interprets the amplitude and decline conditions as measures of market movement and treats an increasing K value as a sign of improving short-term momentum. It also suggests supplementing KDJ with indicators such as MACD or RSI to reduce reliance on a single technical signal.

The article includes formulas and Python examples, but the implementation is not fully aligned with the stated screen: its low-price test checks that the low breached a decline boundary without enforcing the full decline interval, and the shown KDJ calculation may not match the formula described. The article supplies no backtest or evidence of predictive performance. It warns that volatile market conditions can affect indicator readings and that a trend-focused screen may exclude steadier shares. The rules are therefore a proposed filter, not a validated standalone strategy.

Key ideas

• The screen combines daily amplitude, a bounded intraday decline, and a rising KDJ K value.
• The author interprets a rising K value as evidence of improving short-term momentum.
• MACD, RSI, or other indicators are suggested as possible additional filters.
• The supplied implementation does not clearly enforce every stated screening condition.
• No performance testing is reported, and volatile conditions may distort indicator signals.

Tags

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