Stocks that don't move too erratically

Discussion in 'Trading' started by Lord Darkseid, May 19, 2023.

  1. Is there a way I can find the stocks that don't move to erratically like stocks that move down and up continuously? I have been trying to use the Barchart and Market Chameleon screener.
     
  2. Yes, look at stocks with low volatility (ie. volatility below 30). It's called "realized volatility" or "historical volatility" (HV).
     
    Lord Darkseid likes this.
  3. Ok I’ll give it a try tonight.
     
  4. Dicks Sporting goods was down
    Would the chances of me making a profit increase significantly if I trade a stock like Adobe performed today on any given trading day? The IV was at 27% today.
     
  5. You must not mix IV with HV as one is for options and the other for the underlying stock etc.
     
  6. Don’t worry I won’t get IV confused with I’ll use the HV.
     
  7. Just to be clear, I can find profitable trades under the IV and IV rank percentile section with the volatility under 30%?.
     
  8. Also interesting text:
    https://valueofstocks.com/2022/07/14/historical-volatility/

    Next to find is a screener/scanner that allows filtering for volatility.
    Unfortunately most such tools do not offer volatility scanning.

    Here's such a scanner that includes also HV:
    https://marketchameleon.com/volReports/VolatilityRankings
    Click on "20-Day Historical Volatility" to sort ascending/descending for HV...

    It just finds low volatility tickers. Of course you have to further analyse it (see chart etc.) for potential for rising (or falling) some time later, depending on your strategy (bullish/bearish over long term).
     
    Last edited: May 19, 2023
  9. Peter8519

    Peter8519

    Another way to determine volatility is by counting the percent price change over the previous day and plot the counts over a range of change.
    This is a plot for AMZN.
    upload_2023-5-20_8-16-30.png
    This is a plot for TSLA.
    upload_2023-5-20_8-16-58.jpeg
    Volatile stocks tend to have a wider spread.
     
    #10     May 19, 2023