Scan for accumulation & trading range

wil74

Hi , i would like to ask for advise who to scan for Accumulation & stocks in a trading range
Tnx

markd

This isn't perfect, meaning it picks up junk, but most scans for patterns do that. It can pick up what you are looking for, though, and you only need a few. How many you get, and how well they work out depends on what stage the markets, or individual sectors and industries, are going through. Also, any hits are not necessarily immediate buys, but only set ups that may or may not work out.


[[exchange is NYSE] or [exchange is NASD]]
and [market cap > 100] // or whatever universe you choose


// Force MA(251) falling - Force is an accumulation indicator
and [sma(251, Force(251)) < 21 days ago sma(251, Force(251))]

// Force(251) above its MA 63
and [Force(251) > sma(63,Force(251))]

// Force MA 63 rising
and [sma(63, Force(251)) > 21 days ago sma(63, Force(251))]

// Pri MA 63 falling
and [sma(63, close) < 21 days ago sma(63, close)]

// Pri MA had been rising
and [sma(63,close) > 63 day ago sma(63, close)]

Force was originally designed as a short term indicator. I've customized the parameters to find longer term accumulation and it seems to work most of the time. The exception is when there is extreme volume. That distorts the ema for quite a while and may be showing accumulation when there isn't any really. When that happens, you can shorten the parameter, maybe to 63 (one quarter of trading on a daily chart) and see if it makes a difference.

You can get an idea of how often the scan picks up winners, and what winners look like, by back-dating the run date to, say, six or nine months ago or more. That will tell you what has happened to hits since the scan date. Then, to see the scan results as of the run date, so you can recognize the best candidates from current scans, use the start/end date feature on the chart workbench and apply to all, setting the end date to the back-dated scan date.

p.s. you will want to set up a chart style that includes the indicators / overlays used in the scan so you can verify the results.

Here's an example:




You don't need all the panels. Here are the settings. You may be able to copy and enlarge the images.

markd

@wil74 So it looks like MERC (the accumulation+trading range example above) has broken out of its accumulation phase - in spite of the market dropping hard today (2/21)



This appears to be the reason why:

https://www.investing.com/news/transcripts/earnings-call-transcript-mercer-int-q4-2024-beats-earnings-expectations-93CH-3884171