Scanners for consolidating patterns

I'm trying to find stock scanning programs that will find stocks that are coiling into tight wedges, that eventually will breakout of the coil. I'm not sure if a stock scanner can do this, or even how to write code for a programmable scanner to look for stocks that are coliling tighter and tighter. I guess you could tell the scanner to look for stocks whose trading ranges are smaller than the day before. Any help here with this? Thanks all.

 

If you can write down the logic it is simple.
For example you want to find a stock consolidating for 10 days, one way to do this is:
1 the highest close in ten days
2 lowest close in ten days
3 find the ratio
4 low ratio indicates consolidation

 

Thanks Easyguru,

That sounds great. But where, how, what software do I use your advice with?

 

I use tc2000.

 

I have attempted to write many indicators that scan for price patterns. I use NeoTicker. From my experience, you have to go through many iterations before your mathematical model pulls the same charts that you would visually scanning.

As stated in an earlier post is write down the characteristics of the pattern, develop a formala that represents ther charactersitics, then run it through a scanner and review the returned results. What you will find is that you will have returned charts that match the mathematical model but dont match what your intentions were from a visual standpoint. You can then add filters to remove some of the'noise' that you dont want.

Below is a formula that I use for filtering stocks that are basing. I have went through at least 15 different approaches and this one returns results that I would otherwise pick manually going through charts.

This is a NeoTicker formula but the basic idea is that it looks for stocks in a tight base over the past 5 days and the base must be horizontal.


plot1 := mov(0,AVGPRC(0,data1),"Simple",5) < H(0)*1.0005 and mov(0,AVGPRC(0,data1),"Simple",5) > L(0)*0.9995 and
mov(1,AVGPRC(0,data1),"Simple",5) < H(1)*1.0005 and mov(1,AVGPRC(0,data1),"Simple",5) > L(1)*0.9995 and
mov(2,AVGPRC(0,data1),"Simple",5) < H(2)*1.0005 and mov(2,AVGPRC(0,data1),"Simple",5) > L(2)*0.9995 and
mov(3,AVGPRC(0,data1),"Simple",5) < H(3)*1.0005 and mov(3,AVGPRC(0,data1),"Simple",5) > L(3)*0.9995 and
mov(4,AVGPRC(0,data1),"Simple",5) < H(4)*1.0005 and mov(4,AVGPRC(0,data1),"Simple",5) > L(4)*0.9995 and
mov(5,AVGPRC(0,data1),"Simple",5) < H(5)*1.0005 and mov(5,AVGPRC(0,data1),"Simple",5) > L(5)*0.9995 and
mov(6,AVGPRC(0,data1),"Simple",5) < H(6)*1.0005 and mov(6,AVGPRC(0,data1),"Simple",5) > L(6)*0.9995 and
mov(7,AVGPRC(0,data1),"Simple",5) < H(7)*1.0005 and mov(7,AVGPRC(0,data1),"Simple",5) > L(7)*0.9995 and
H(0) < ((H(0)+H(1)+H(2)+H(3)+H(4)) / 5) * 1.01 and
L(0) > ((L(0)+L(1)+L(2)+L(3)+L(4)) / 5) * 0.99 and
H(1) < ((H(0)+H(1)+H(2)+H(3)+H(4)) / 5) * 1.01 and
L(1) > ((L(0)+L(1)+L(2)+L(3)+L(4)) / 5) * 0.99 and
H(2) < ((H(0)+H(1)+H(2)+H(3)+H(4)) / 5) * 1.01 and
L(2) > ((L(0)+L(1)+L(2)+L(3)+L(4)) / 5) * 0.99

 

If you're into using indicators instead, try looking for a low adx condition (14 and below). The larger the number of consecutive bars with a low adx condition, the tighter the coil.

-eLindy

PS: I know Tradestation with Radarscreen can do this. I'm not sure about TC2000. I also believe that ERLangerQuote can do this (but their documentation and support leaves a lot to be desired).

 

This is free scan: http://stockcharts.com/def/servlet/SC.scan
Maybe you can join as menber to write your own scan about stocks & funds. Maybe be it is better than TC2000.

 

Thanks guys.