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Registered User
Joined: 2/26/2005
Posts: 15
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I would like to scan for todays volume bar breaking the
upper Bollinger band. I did not know how to write this so I
used the sort function.
I have put the volume in the lower window overlayed it with the
Bollinger band. I clicked on the Bollinger Band and selected "sort by".
This procedure does not work for 'todays' volume bar. Perhaps the sort
looks further back than todays bar. Is there any way to have it look
at only todays volume bar or to write a PCF to do this?
Thanks for your help.
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Registered User
Joined: 1/29/2005
Posts: 10
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Hi jmecom,
For volume breaking the upper bollinger band I use the following set up.
As you have mentioned in the lower window I have the volume bars and then on the volume bars I apply (ovelay) the bollinger band with a setting 20 period with a width of 20 ( 2 std).
To find candidates that break the upper band I scan using the following PCF :
V > (AVGV20 + 2 * SQR((20 * (V * V + V1 * V1 + V2 * V2 + V3 * V3 + V4 * V4 + V5 * V5 + V6 * V6 + V7 * V7 + V8 * V8 + V9 * V9 + V10 * V10 + V11 * V11 + V12 * V12 + V13 * V13 + V14 * V14 + V15 * V15 + V16 * V16 + V17 * V17 + V18 * V18 + V19 * V19) - (AVGV20 * 20) * (AVGV20 * 20)) / (20 * 20)))
You can adapt the formula above for more striking volume surges by apply a mulipier e.g:
V > (1.2*(AVGV20 + 2 * SQR((20 * (V * V + V1 * V1 + V2 * V2 + V3 * V3 + V4 * V4 + V5 * V5 + V6 * V6 + V7 * V7 + V8 * V8 + V9 * V9 + V10 * V10 + V11 * V11 + V12 * V12 + V13 * V13 + V14 * V14 + V15 * V15 + V16 * V16 + V17 * V17 + V18 * V18 + V19 * V19) - (AVGV20 * 20) * (AVGV20 * 20)) / (20 * 20))))
Next, I further screen the stocks selected by the PCF, by applying a minimum captialization ($500M)and volume over the last 90 day (500k).
I then put these candidates in a watch list and then use the sort function in descending order on the volume bars, and identify any potential candidates with a strong break out above the upper band with any additional strategy I maybe observing i.e a particular chart formation, support and resistance area etc....
Hope this helps.
Best regards
Sanjay
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You can also visually sort by the bands on volume. Price is the parent in this video but everything works for volume as the parent:
Sort using envelopes, regression channels and Bollinger bands
- Craig
Here to Help!
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Registered User
Joined: 2/26/2005
Posts: 15
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Sanjay,
Your PCF worked great!
Thanks for the help.
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Registered User
Joined: 1/29/2005
Posts: 10
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jmecom,
Your welcome. Glad it worked.
Question how are you using this information for potential candidates ?
Best regards
Sanjay
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