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Help with Volume Scan

Hi,

I'm trying to create a scan based on Stan Weinsteins criteria. What I'm having trouble with is to define a "One-week volume spike that is at least twice the average volume of the past month". I'm trying to avoid using a fixed # of volume. Will stockcharts scans allow me to do this? Thanks in advance.

Comments

  • markdmarkd ✭✭✭
    Yes.

    and [weekly volume > weekly sma( 4, weekly volume) * 2]

    You would probably get the best results if you run this on the week-end (after Friday's close, in other words). Or, if you are back testing, choose Friday dates only (except Good Friday use the prior Thursday).

    Another possibility is

    and [weekly volume > 1 week ago weekly sma( 4, weekly volume) * 2]

    The first alternative would include the current week and the three weekly bars immediately preceding to calculate the volume average. A symbol would have to have current week volume twice that average to be a hit.

    The second alternative would exclude the current week and look back four bars (second to the fifth bar back, in other words, counting the current bar as the first). That average volume number might be higher or lower than the first example, depending on how the volume for the fifth bar back compares to the current bar. If the fifth bar has less volume than the current bar, you might get some extra hits because the average volume is lower. If the fifth bar back has more volume than the first, there could be fewer hits.

    Or, both could give the same results if the current bar volume is really high. It may not matter which you use. Just something to be aware of. Weinstein argues the more clear and definite the pattern, the more likely it is to succeed, so maybe the first is the best. Try it both ways for a while.
  • Thank you very much, I will give it a try.
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