hi gentlemen,
i m looking for a narrow build up of a stock (tight consolidation) so i tried the “flat base” screener which does not give the results i want. often it fails.
i also tried to make a screener on my own with bollinger bandwidth indicator. the results are pretty much the same.
Does anyone have an idea what to use for a screener in order to find a tight consolidation like the case of e.g. an ascending triangle or a build up at a support/resistance level?
thanx in advance.
There can be many ways to spot a ranging market. Here are a couple of them (#2 is one of favourite):
#1 (price is sitting within a specified range, within the most recent periods):
HH = highest[40](high]
LL = lowest[40](low)
IsRange = (HH - LL) <= 20 * PipSize
#2 (Bollinger Bands are both inside a Donchian Channel):
//------------------------------------------------------------------------------------
// BB - Bollinger Bands
BBval = 20 //6 periodi BB
BBdev = 2.00 //2.00 deviazione BB
BBAvgType = 0 //0 = sma
BBavg = average[BBval,BBAvgType](close) //BB mean (middle line)
BollUP = BBavg + ((std[BBval](close)) * BBdev) //BB Upper Band
BollDN = BBavg - ((std[BBval](close)) * BBdev) //BB Lower Band
//------------------------------------------------------------------------------------
// Donchian Channel
//
DonchianP = BBval
DonchianUP = HIGHEST[DonchianP](HIGH[1])
DonchianDN = LOWEST[DonchianP](LOW[1])
//------------------------------------------------------------------------------------
IsRange = (BollUP <= DonchianUP) AND (BollDN >= DonchianDN)
Use the variable IsRange to take any action.