| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 3/1/2011
Posts: 8
|
Is it possible to create a scan that looks at volume throughout the course of a day (i.e. looking for large volume spike as lead indicator of stock about to move)? If that is possible, is it possible to create a formula that would scan for stocks with an exploding volume bar or cluster of volume bars over a very short period of time (like 1-10 minutes max).
Essentially I want to figure out a formula that will use volume as a lead indicator of price change. But not net volume or volume buzz because those take into account the volume levels for too long a period of time. I'm interested in a formula or scan that will pick up when a single volume bar is abnormally high. Is it possible? Is it possible to do so and make volume relative so that you can see smaller cap stocks with volume spikes?
Thanks in advance and sorry if that sounds confusing.
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
You can create a formula for a 1-Bar Volume Surge as follows:
PCF Formula Descriptions
Handy PCF example formulas to help you learn the syntax of PCFs!
V > 3 * AVGV90.1
This would look for the Volume of the current Bar to be more than three times the Average Volume for the previous ninety Bars. You can adjust the multiple and Moving Average Period as desired.
Personal Criteria Formulas and EasyScans in the current version of TeleChart are limited to the 20-Minute Delayed Daily data (this limitation is not part of the TC2000.com version 11 beta).
How to create a Personal Criteria Forumula (PCF)
Using EasyScan to find stocks that meet your own criteria
In the current version of TeleChart, you could create a Custom Percent True Indicator or Custom Indicator based on your current Personal Criteria Formula and then use RealTime Indicator Sorting, but the results would be limited to the top 200 symbols in the WatchList.
Visually Backtesting Specific Symbols
Plotting Custom Indicators with Examples
Sorting price and indicators by their Actual Value
Real time indicator sorting (available at the Platinum level)
In the TC2000.com version 11 beta, you could just the Time Frame of the PCF to whatever you want.
All questions, comments and suggestions related to the TC2000.com version 11 beta should be addressed to:
feedback@tc2000.com
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 3/1/2011
Posts: 8
|
Thank you! So the way to do this is to create a new PCF, enter the formula, and then sort by the formula. The default time is daily...is that what I should be using?
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
That you have mentioned that the "default time" is Daily would lead me to believe you are using the TC2000.com version 11 beta (as PCFs in current production release of TeleChart are always Daily).
If you are looking for Volume Surges for "a very short period of time (like 1-10 minutes max)", you would probably want to use a shorter Time Frame than Daily (maybe 1 Minute or 10 Minutes for example).
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 3/1/2011
Posts: 8
|
Does what I am trying to do make sense to you? I created the PCF but it's not really showing me what I want it to. Do I want to insert the PCF into an easyscan in order for it to work properly? Essentially the idea is that I want to look at volume spikes as a lead indicator for price changes. Is this the best way to do that? Is there an easyscan or PCF that would allow me to scan for stocks that are surging in volume (relative to normal volume for that stock)?
Also, maybe I'm doing something wrong. All I did was create the PCF and sort all U.S. common stocks by the PCF. Is there a better way to accomplish the same goal? Or am I just not doing this right? Or do I need to wait for the next version of TC for it be able to really work?
I really, really appreciate your help!
|
|
Registered User
Joined: 3/1/2011
Posts: 8
|
Sorry I wrote that message before seeing your response.
|
|
Registered User
Joined: 3/1/2011
Posts: 8
|
Yes I am using the most recent version of TC2000. Should I set up an easyscan to do this and incorporate the PCF? What's the best way to do it now that you know what I'm working with?
Also if I wanted to look at Volume spikes do you think looking at one individual volume bar vs. the previous 90 or so is the best way to find volume surges? I guess it would be the best way to look for the beginning of a volume surge. But do I really only need to enter the PCF and then sort whatever list I want to use by that PCF?
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
QUOTE (garrett.clrk) Should I set up an easyscan to do this and incorporate the PCF?
You can certainly do so. If you do, the EasyScan should only contain symbols which currently return True for the Personal Criteria Formula.
QUOTE (garrett.clrk) What's the best way to do it now that you know what I'm working with?
I don't know that using an EasyScan versus a Sort is better or worse. An EasyScan would only return symbols returning True while a Sort based on the PCF would mark the symbols returning True and put them together in the WatchList. It really is up to you.
EasyScans and Column Sorting
QUOTE (garrett.clrk) Also if I wanted to look at Volume spikes do you think looking at one individual volume bar vs. the previous 90 or so is the best way to find volume surges?
I don't know if it is the best way or not. The formula was provided as an example along with some basic instructions on how to adjust its parameters.
If you have a better idea, then we will do our best to help you implement it as long as you are able to come up with a specific unambiguous objective description of what it is you are trying to find.
QUOTE (garrett.clrk) I guess it would be the best way to look for the beginning of a volume surge. But do I really only need to enter the PCF and then sort whatever list I want to use by that PCF?
This will identify symbols where the current Bar has at least three times as much Volume as the Average Volume over the previous 90 Bars. So if this is what you want to do, then yes.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 3/1/2011
Posts: 8
|
Thank you. I really appreciate it. Do you know of any other scans or formulas that are trying to achieve the same goal (i.e. look at volume as a driver of pps) and are worth looking at?
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
The trainers can't give setting, interpretation or investment advice. I'd suggest asking the question in the Stock and Market Talk forum where other traders are more likely to see it.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
|
Guest-1 |