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Looking to scan for a 30 day Bollinger Band squeeze and price breakout with abnormal volume

Brownie
Brownie ✭
in Trading Strategies
I'm good with the abnormal volume portion but am having difficulty defining the low volatility 30 day Bol Band and price breakout. Thanks for any help

Comments

  • markd
    markd mod
    I think for simplicity, I'd break the scan into two parts. First scan for the squeeze and put the results in a list. Then scan the list for volume breakouts.

    I don't use BBs, so I'm not sure if the reference to "30 day" squeeze has some particular requirements. If not, I might do it something like this:

    // Bands are narrowest in 30 days
    and [BB Width(20,2) = min(30, BB Width(20,2))]

    // Band width today is less that 25% of the widest bandwidth in 30 days)
    and [BB Width(20,2) < max(30, BB Width(20,2) * .25]

    You could play with any of the parameters to see what combination gives the best results.
  • Brownie
    Brownie ✭
    Thanks Mark. What do you use if you are looking for a basing pattern? Price channel, ATR?
  • Brownie
    Brownie ✭
    http://stockcharts.com/h-sc/ui?s=ATNM
    This is very close to what I'm looking for
  • markd
    markd mod
    I like to look for pull backs in an up trend, so I haven't really played with basing patterns.

    You could try converging price channels - upper channel - lower channel < x days ago upper channel - x days ago lower channel. Or maybe UC - LC < (x ago UC - x ago LC) * .25, or something like that. Not sure what would be a good channel length, though.
  • RAClose
    RAClose ✭
    Markd last post is what I've been looking for, but I can't seem to write the scan correctly for a BB using (7,2). :(
  • markd
    markd mod
    Post what you have and we'll tweak it.

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