in search for narrow build up

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02/13/2022 at 9:41 PM #188206 quote

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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.

02/14/2022 at 4:56 PM #188241 quote

robertogozzi

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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.

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