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strength, consolodation, new leg higher

looking for the correct scan that can identify a stock that has risen x percentage, for x amt of days, and then has a pullback (w lower volitility, if possible) for x amt of days. Basically, a stock that is showing recent strength, pulling back (consolodating) for a possible leg higher.


  • markdmarkd mod
    edited July 1
    That's a pattern, so there is no "correct" scan because patterns differ.

    Before you can write the scan, you have to determine which indicator, or combination of indicators capture the pattern. That involves looking at a lot of charts. So you have to decide what per cent advance, what time time period, and what per cent drawback works for you.

    Stochastics show where prices are /have been as a per cent of the range over a period of time you select. So that might be a good start.
  • Maybe something like this:

    [group is sp600]

    // get first close or low into the bottom 20 per cent of the last 20 days' range
    // avoid second or third crosses

    // K21 has been above 80 in the last 20 days
    and [1 day ago max(20, Fast Stoch %K(21,1)) > 80]

    // K21 has not been below 20 in the last 5 days
    and [1 day ago min(5, Fast Stoch %K(21,1)) > 20]



    // check for K21 xb 20
    [20 x Fast Stoch %K(21,1) ]


    // or low xb 20 instead of K21 xb 20- strong stocks may not close xb 20
    [ 1 day ago min(21, low) + [ [1 day ago max(21, high) - 1 day ago min(21,low)] *.2] x low ]


    You could add a test for rising longer term MA - today's MA > 20 days ago MA, and maybe test for close above the MA. That would get things already in an up trend.
  • “that has risen x percentage, for x amt of days,”

    Possibly, price is over a [10] day moving average Maybe the Countup countdown feature, for several days in a row…


    • Bollinger Bands.
    • ATR – Average True Range Indicator.
    • VIX – Volatility Index.
    • Keltner Channel Indicator.
    • Donchian Channel Indicator.
    • Chaikin Volatility Indicator.
    • Twiggs Volatility Indicator.
    • RVI – Relative Volatility Index.

    You could perhaps use the Chaikin Oscillator, perhaps, as an example

  • The Width, of the Donchian Channel, will display the volatility of Individual stocks..

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