Stock Screening with RSI, Rising KDJ, and Moderate Turnover

Summary

This article outlines an equity screen requiring RSI below 65, a rising KDJ K value, and turnover between 3% and 12%. Its stated aim is to find stocks with relatively subdued RSI readings, improving short-term momentum, and moderate trading activity. The article gives formula and Python examples, including a two-period change in K and a turnover calculation, then describes selecting up to five qualifying names ranked by percentage change when enough stocks pass the conditions.

The author notes that a narrow turnover band can exclude otherwise attractive companies and that technical signals do not account for fundamentals, market themes, or macroeconomic conditions. Suggested refinements include adding valuation measures, considering the KDJ D line, and widening the turnover range. These are proposed ideas rather than tested improvements. The article offers no historical results, benchmark comparison, transaction-cost analysis, or evidence that the screen identifies undervalued stocks; RSI below the stated threshold alone does not establish undervaluation.

Key ideas

• The screen combines RSI below 65, a rising KDJ K value, and turnover between 3% and 12%.
• The example measures K growth over two periods and ranks qualifying stocks by recent percentage change.
• The article proposes valuation and additional KDJ measures as possible refinements.
• A narrow turnover interval may exclude candidates, and the screen omits broader fundamental and macroeconomic factors.
• No backtest or evidence of improved returns is supplied.

Tags

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