Stock Screening with Turnover, Order Book Imbalance, and KDJ Crossovers

Summary

This stock screen looks for turnover between three and twelve percent, displayed best-bid volume greater than best-ask volume, and a newly formed bullish KDJ crossover. The conditions combine trading activity, a near-touch order-book comparison, and a short-term momentum indicator. The document also outlines the KDJ calculation, based on the position of the close within a recent high-low range and smoothed K and D values, with J derived from them.

The article cautions that KDJ can produce false signals and that the screen ignores longer-term economic conditions and company fundamentals. It suggests adding other indicators and fundamental checks. No Python implementation is supplied, and the document offers no backtest results or evidence that the screen is profitable; the stated potential is therefore an untested rationale rather than a demonstrated outcome.

Key ideas

• The screen requires turnover between three and twelve percent and best-bid volume above best-ask volume.
• It also selects stocks where KDJ has just formed a bullish crossover.
• KDJ is calculated from the close's location within a recent high-low range and smoothed values.
• The article warns that indicator signals can be wrong and that fundamentals are omitted.
• No implementation or performance evidence is provided.

Tags

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