Stock Screening with Price Range, Volatility, and a KDJ Bullish Cross

Summary

This Chinese stock-selection rule combines three technical conditions: daily price amplitude above 1%, a positive 10-day return below 35%, and a newly formed bullish KDJ crossover. The article interprets the amplitude threshold as selecting stocks with movement, the return band as avoiding both negative performance and very large recent gains, and the crossover as a possible sign of upward momentum. It provides indicator formulas and a Python example, but no historical test results or performance evidence.

The author notes that KDJ can lag or produce false signals, and that short-term price and indicator filters leave out other relevant information. Suggested refinements include combining indicators, diversifying exposure, and avoiding reliance on a single signal. The examples also contain additional conditions beyond the three conditions stated in the written rule, so implementations should be checked for consistency before use. The selection criteria alone do not define entry execution, exits, or risk limits.

Key ideas

• The screen requires price amplitude above 1% and a 10-day return between 0% and 35%.
• It seeks stocks where the KDJ indicator has just formed a bullish crossover.
• The article treats the crossover as a possible signal, while warning of lag and false positives.
• The examples include conditions beyond those in the prose description.
• The rule provides no exit or position-risk method and has no reported performance evidence.

Tags

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