Is there a way to screen for volatility? My way of trading asks for maximum volatility, but I'm having a hard time screening for stocks that qualify. Usually I look at 1-min charts for the previous day on some arbitrary stock list and choose the ones that have the most and longest, alternating 1-minute bars. It's discretionary. Basically, I'm looking for stocks that are NOT trending, or will not trend. How would I go about my business and what screener can I use? What parameters should I look for?
In Chapter 20 of the book âStreet Smartsâ Connors and Raschke show how to use Historical Volatility to trade with. In the appendix they explain how to calculate it. They use the 6 day / 100 Day historical volatility. I have used a variation of this successfully in swing trade stocks on daily charts. They traded futures using HV and an inside day as their set up. Adapting HV to scanning tools should be easy to code. But, doing it intraday may be a challenge.