Stock Screening with Turnover, Rising KDJ, and a Sharp Intraday Drop

Summary

This document describes a daily stock screen that selects shares with turnover between 3% and 12%, a rising K value in the KDJ indicator, and an intraday low between 4% and 5% below the previous close. It provides equivalent selection logic in a technical-analysis formula and a Python example, and explains the intended rationale: identify stocks that have fallen sharply while retaining a positive indicator signal, as possible short-term rebound candidates.

The author cautions that the day’s maximum decline does not establish the broader trend or predict future performance, and that such a drop may not be a good entry point. The post suggests combining additional indicators, such as trend lines or MACD, and checking for fundamental causes of weakness. It supplies no backtest results or evidence that the rebound premise works. The Python example’s stock-list extraction and shifted price calculation may also need review before use, so its implementation should not be treated as validated.

Key ideas

• The screen combines turnover between 3% and 12%, a rising KDJ K value, and a daily low decline between 4% and 5% from the prior close.
• The proposed rationale is to find sharp pullbacks where the indicator remains positive, in search of short-term rebounds.
• The document warns that the maximum intraday decline alone does not indicate trend or future performance.
• Additional technical and fundamental checks are suggested, but no empirical results are reported.

Tags

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