Stock Screening with Volatility, Recent Price Surges, and a KDJ Golden Cross

Summary

This stock screen combines three technical conditions: a trading range wider than an average true range measure, at least one daily gain of 10% or more within the previous 25 sessions, and a newly formed bullish KDJ crossover. Together, the conditions seek volatile shares that have recently shown a strong upward move and may be turning higher according to the indicator. The document provides example formulas and code, but no backtest or performance evidence. Its code examples also do not clearly implement the stated lookback condition across the full period.

The author cautions that a KDJ crossover is not a dependable buy signal on its own. A screen centered on recent price action can overlook fundamentals and longer-term performance, and technical signals may be misleading in turbulent markets. Suggested refinements include checking other indicators, company fundamentals, supply and demand, and policy context. The proposal remains a short-term screening concept: it gives no entry sizing, exit rules, transaction cost assumptions, or evidence that the added filters improve returns.

Key ideas

• The screen combines elevated price range, a recent daily gain of at least 10%, and a fresh bullish KDJ crossover.
• The conditions target volatile stocks with evidence of recent price strength.
• A KDJ crossover alone is not a reliable buy signal and may need confirmation.
• Short-term technical screening can neglect fundamentals and longer-term company performance.
• The document offers no performance test or complete trading and risk-management rules.

Tags

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