Can someone suggest a scan expression for the following variable of trading liquidity?

frednaef

Hi: I could use your help:

I am an experienced stockcharts.com member with intermediate experience in building my own scans for setups I like: I am asking other experienced users for suggestions:

I am developing a scan for stock liquidity and price acceleration both up and down.


(I define stock liquidity as average volume of a stock for a period of time divided by outstanding shares:
Stockcharts provides the following variables:
[outstanding shares > 100]
[Volume > 9,999,999]
[Liquidity > 9,999,999] )

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Despite numerous repeated expressions I am unable to get a useful scan:


☹ //There are several workarounds, obviously like 4*volume..blah, blah blah, Roc Price, blah blah bhal, but those expressions are not very precise. or elegant. also some variations of rate of change PPO faster than PVO but again not surgical...

What I am trying to do is ground work on isolating stocks : pitcture a a drag street racer that engages in
higher revolutions of cycles as he pushes on the accelerator without getting trackson as opposed to another that does not spin his wheels- advancing with great speed and less wasted energy, ie. with advancing price.
I do not really care about noise: behavior of running out of a building when someone calls fire or running into a stock because the herd is piling into it:, I am trying to develop a signal detector, to see steady, stealth advance under the radar accumulation reflected in rapid, consistent price change up and down..

Q. Can you suggest a solution?
I ran and use the advanced scan editor but have failed to find a solution.

Let's start an informed discussion, and I will do my part to share what little I know.

Best wishes,
Fred

markd

So what I understand you are looking for is advance notice from price and volume that the trend is about to change. It sounds a lot like Wyckoff's ideas about accumulation and distribution.

Wyckoff didn't have scanning, or many of the indicators available today, but you might spot the beginnings of a turn - not an entry or exit signal, but a suggestion to change your bias from bullish to bearish or vice versa - with a scan for divergence between price and some form of cumulative volume - OBV, Force, Chaikin ADL or others.

For a bearish reversal look for a close that is max for some period of time and the cumulative volume indicator is less than its max over the period. For a bullish reversal, the same idea but price is its minimum for some period of time and the volume indicator is not so low.

Or you could look for a difference in the direction of moving averages for price and a cumulative volume indicator. Bullish would be price below its falling MA, volume indicator above its (rising or falling) MA of the same length. Bearish would be the reverse.

These scans would only pick up candidates and not every candidate would work out, especially early in a strong trend (some times there is an initial surge in volume and price continues to make new highs or lows and the volume indicator never catches up, creating "false divergences"). Entry would come at the breakout or break down in price (unless you think you can spot exhaustion on the chart, then you could try an entry before the breakout/down.