Help! Technical indicator for high velocity move on huge volume?

Discussion in 'Technical Analysis' started by nicbizz, Jun 9, 2010.

  1. nicbizz


    Could a TA expert help me out please. I'm looking for an indicator that shows huge percentage moves (in one direction) over the past couple of days on unusual volume.

    I'm thinking RSI or Stochastics, but I'm not too well versed in how they work, or how they might be useful in identifying what I want ...
  2. RSI is typically 14-day but if you set it to 5 days or less maybe that's what you're looking for. You could maybe measure same thing with 5-day moving average over 20-day moving average (moving average = DMA or EMA, over = divided by). You could then for the volume part take 5-day average volume over 20-day average volume. Combine the two and you're done.

    Note the ratio of one moving average to another is known as MACD. So screen for high price MACD and high volume MACD.

    Some screening sites: