Volatility Indicator?

[vidda]

Does anyone know what indicator is good for finding stocks with volatility? Such as stocks that move up constantly up and down. I want to use it for leaving out stocks that are not moving and always stuck around the same price.

Any recommendations?

 

[tech/a]

Searching for breakouts is often the best.
Ranges of consolidations often lead to new trends.
You can of course have breakous from various length consolidations.
One of my favorites is the Highest High for 500 periods.You could use 200,100,50,20.
You can also use Bollinger Band Breakouts.
There are endless possibilities.

 

[Trader Paul]

Hi vidda,

Chaikin's Volatility Index is calculated by taking a 100 day moving average of the difference between the highest and lowest levels of the market each day.

Volatility tends to peak, when the market becomes overbought and bottom out,
as better values become apparent.

Chaikin's Volatility Index can be found in the standard list of Metastock
indicators and may also be drawn as a channel, as well.

More info on volatility available, at:

http://www.incrediblecharts.com/technical/chaikin_volatility.htm

=====

Schwager's volatility ratio may also help, as it is designed to identify
breakouts from a low-volatility trading range .....

Volatility Ratio = True Range / True Range for the past n periods

More info, at:

http://www.incrediblecharts.com/technical/volatility_ratio.htm

happy days

paul

 

[wayneL]

you can also use statistical volatility as used by option traders. I find it is a good filter as well as those mentioned.

 

[Trembling Hand]

Does anyone know what indicator is good for finding stocks with volatility? Such as stocks that move up constantly up and down. I want to use it for leaving out stocks that are not moving and always stuck around the same price.

Any recommendations?

What you are looking for is a stock that is clearly running hard before you buy it and one that will continue to run after your purchased it?

Sorry to be a downer but have you heard "past performance is no guarantee of future performance". It is almost certain that a volatile stock will charm down just as the volatility looks like your best friend and conversely a boring stock stuck in the mud for seemingly ever will explode after everyone has given it up as going nowhere.

Like Tech/a is saying you want to be looking at breakouts just before or right as they start. Before the crowd is attracted to the volatility. Then you have the luxury of getting in when its calm and out when everyone else wants in. Believe me the opposite is murder, that is trying to get in as its going wild and out as everyone realises they had bought off the smart money and there is no more dumb money left.