How to Search for Range-Restricted Stocks

admin2 days ago

December 21, 2024

A while ago I received an email asking how to find range bound stocks. I started responding.

There is no direct way to do it. Range limits can be very subjective.

But as I was writing, I remembered something I often tell people about scanning in SwingTradeBot (and the content of the getting started tip). Check out our “Scans by Category/Type” page and see what matches your trading style. So I went and took a look (since I don’t remember all the scans I’ve made over the years) and a few categories stood out.

Basic Scan – Any scan can fit the bill. Let’s start with a scan of the Bollinger Band Squeeze..
Low Volatility Scans – There are 4 Bollinger Band based scans and a “3 Week Tight” scan.
Range Constriction Scans – Mostly overlap with the two categories above.
And after looking at the moving average scan category, one in particular came to mind. that Period trend scan (see my Blog post about that scan) This allows you to do things like “Find stocks above 200 DMA but flat (close to) with respect to 50 and 10 DMA.”

I listed them in my email response and concluded with:

You can search for stocks that are above a certain moving average. Moving averages are again subjective and depend on the time period you are interested in. Filtering out C-rated stocks can also help with A- and B-rated stocks. tend to Sort of on an upward trend… (and D & F ratings tend to In some kind of downward trend)

you can also coquet “Price vs. Moving Average” filter on any scan:

price-moving-average-filters.png 73.83KB

You can also get creative by using combo scans and/or continuous scans. One idea that comes to mind is to sequentially scan stocks that have crossed their moving averages for two or three consecutive days.

So there are potentially a variety of ways to use SwingTradeBot to find range-bound (non-trending) stocks. If anyone has any other ideas, please leave them in the comments.

Screen scan site feature filtering

admin2 days ago