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How to scan for strong accumulation

Tom Bowley has several videos that show the benefit of watching the accum/distribution line on stocks to try to find stocks that are being accumulated during this overall market downturn. Is there a simple way to scan for strong accumulation?
Thanks in advance for any idea on this!

Comments

  • markdmarkd mod
    edited April 18
    You could test for a rising moving average of an accumulation indicator (e.g. OBV, Force) e.g. today's MA is greater than say 10 days ago MA, and then test for the accumulation indicator greater than its MA.

    So for instance:

    and [sma(50, OBV) > 10 days ago sma(50, OBV)]
    and [OBV > sma(50, OBV)]

    That would probably work pretty well in a normal market, but right now, there are few rising SMAs for longer parameters. So maybe just test for the second line. Or try both lines with Force instead of OBV, but use a longer than default parameter for Force, maybe 63 instead of 21.

    Or you could skip the SMA idea and just test for a rising OBV or Force line, e.g.

    and [OBV > 21 days ago OBV]

    Look at the Divergence section of this article on OBV from Chart School:

    https://school.stockcharts.com/doku.php?id=technical_indicators:on_balance_volume_obv
  • Thanks for the suggestions - trying out a few of those ideas. Another question - probably a simple solution - how do I eliminate any stock from the LSE exchange?
    Thanks in advance!
  • Either specify the exchanges you do want or specify the ones you don't want. (by the way - this should be the first statement of your scan - it will run faster)

    For instance, if you only want one exchange:

    [exchange is NYSE]

    That will get stocks from the NYSE ONLY, so you don't have specify which other exchanges you don't want.

    If you want more than one, you need an "or" statement that includes all the ones you want:

    [ [exchange is NYSE ] or [exchange is NASD] ]

    If you want more, just keep adding them. Note the out side brackets around all your selections. You need those or you scan won't work.

    Likewise, if you want all exchanges EXCEPT one

    [exchange is not NYSE]

    That will get all stocks anywhere, unless they are list on the NYSE. If you want to exclude more than one exchange, you need an "or" statement again with all your "is not" exchanges.

    The abbreviations for all available exchanges are here are the heading "Exchanges"

    https://support.stockcharts.com/doku.php?id=scans:reference:ticker_properties
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