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Scanning The trading range
Recently, I am working on the scanning. And I want to trade the break up so I need to find the stocks which is in trading range phase. In my opinion, if SMA10 is moving with SMA30 up and down, that means this stock is in trading range. So the average value of the SMA10 and SMA30 in a period of time such as 20 days should be very close.
So my question is whether there is a way to find the average value of SMA10 and the SMA30 in the past 20 days and compare them? Thank you!
Small correction... MACD Hist is normally the difference between MACD and a signal line. If you want it to show the difference between the two EMAs, then the third parameter needs to be set to zero.
Here it is:
and [max(20, PPO Line(10,30,0)) < 1]
and [min(20, PPO Line(10,30,0)) > -1]
You can play with plus 1 and minus 1, but they seem to work pretty well and picking up ranging behavior.
I think we complement each other well. You are the scanning expert and I try to find expertise in other things.
I remember you said you do not use MACD. I learned a lot of details about MACD in this post: http://scan.stockcharts.com/discussion/503/moving-average-of-a-moving-average
I know people love MACD and use it successfully. But after playing around with dozens of indicators I realized my thinking is really oriented toward volume and support/resistance. So, I settled on volume based indicators, channels and stochastics in various time frames. They seem to me to be more timely - or at least it's easier for me to read them. At some point, you have to say enough is enough and decide what you are going to concentrate on to the point that it is second nature. So that's what I've done. Not a criticism of folks who have chosen differently, just a difference in style.