Stock Screening with KDJ Crossovers, Daily Range, and Revenue Growth

Summary

This article describes a Chinese equity screening rule combining a daily high–low range above 1%, a newly formed KDJ bullish crossover, and 2021 revenue more than 1.1 times 2018 revenue. It explains the intended rationale: favor stocks with price movement, improving short-term momentum, and revenue growth. It also provides example implementations in indicator formula syntax and Python, making the screening conditions reproducible in principle.

The article warns that revenue growth may not persist, that the screen omits other fundamental information, and that a focus on recent conditions may miss longer-term factors. It suggests adding indicators such as RSI or moving averages, examining valuation and broader fundamentals, and avoiding indiscriminate momentum chasing. No backtest, benchmark, portfolio construction details, or performance evidence is reported, so the proposed screen is a hypothesis rather than a validated strategy. The article also contains a discrepancy: its prose specifies the revenue ratio threshold as 1.1, while one formula comment and condition may not consistently represent the stated years or criteria.

Key ideas

• The screen combines a daily price range threshold with a newly formed KDJ bullish crossover.
• It requires 2021 revenue to exceed 1.1 times 2018 revenue.
• The stated rationale links price activity and momentum with company revenue growth.
• The author identifies persistent growth, omitted fundamentals, and short-term focus as limitations.
• No performance testing is given, and the formula examples may not fully match the prose.

Tags

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