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Registered User
Joined: 10/4/2009
Posts: 66
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i have been looking for a way to isolate bollinger band squeezes or cosiladating stocks that cause the billinger band to get narrow over a period of several days. but i havent found a way to do that yet. Its nice that dan kirk patrick pointed that the bollinger band sqeeze the last webinar.
its good that micheal thompson pointed out how to create a scan to find stocks going above or below the bollinger bands . i have trying to create a scan like that.
Is there a way to create a scan for bollinger band squeeze with the current indicators?
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Registered User
Joined: 10/7/2004
Posts: 886
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In Michael's webinar, he creates a scan where he looks for just such a consolidating situation.
In that scan, he uses the bollinger bandwidth to identify stocks that have been in a consolidation phase.
Michael creates a scan where the bollinger bandwidth is less than 0.10 for 21 of the last 21 days.
Although you may want to play with the parameters, does that not do what you're looking for?
Bob
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Registered User
Joined: 8/17/2008
Posts: 6
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To find the stocks with squeeze, you can open bollinger bandwidth indicator and highlight to show raw value. Once you have the raw values listed you can sort it in ascending order which will show the stock with tightest squeeze on the top. This is the simplest way I found to locate stocks with tight squeezes.
Although having tight squeeze does not mean that the stock will breakout in the direction you want so to locate Bollinger Bandwidth breakout to longside I just combine two rules. 1. Price crossing through upper bollinger band and 2. Upper bollinger band moving quickly. And then go through each selected stock to see how tight the squeeze has been prior to breakout.
You can also add another rule in sequence before breakout rule that bollinger bandwidth making xxx day low or below certain value but with that you will sometime miss because using any numerical value will limit the selection.
Hope this helps.
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Registered User
Joined: 10/4/2009
Posts: 66
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i had to go back and review it. yes it did show how to find a stock in a volitility squeaze. apatil dont know how to get a raw value you must different software. i looked but couldnt get it to show raw values. ill try those suggestions.
now i just half to learn how to executute on that gut feeling. i see a stock that looks like its going to break out and i dont execute a buy and sure enough it goes up.
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Administration
Joined: 9/30/2004
Posts: 9,187
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"Raw Value" is now "Data Column" in version 5. Plot Bollinger Bandwidth, then click and drag it to the watchlist and select Data Column.
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