Narrow Range Market Analyzer Scan
I was reading Elitetrader ( yes I read it. You probably do to but do not want to admit it. ) A user was looking for a free stock screener to find stocks in a narrow range. I though it was a good idea, and since NinjaTrader is free, and you can get free end of day data, I decided to make a free narrow range screener. So no need to spend $400 bucks. To use, download the NarrowRange Indicator, and set up Market Analyzer below.
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The formula finds a percentage of the range over a certain period.
MAX ( High )
Range = ------------------ - 1
MAX ( Low )
So we just look at the range over a period, and use that percentage to decide if the range is narrow.
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So this is what I can up with. It is an indicator that returns a value if the stock has traded in a narrow range for a certain number of periods. This image is of the Dow 30 stocks , scanned to see if any are in a narrow range for the last 30 days. As of today the only stocks that are trading within a narrow range are WMT, MMM, VZ, IBM, T and JNJ.
The settings are shown in this dialog. The percentage is set as a whole number. So i you were looking for a 10 percent range, you would set this value to 10, as we did here. The indicator returns a value of between 1 and -1. So to hide the display of the non narrow range instruments, I set the reference to zero. The length is 30 and that is how many periods I look back to determine if it is a narrow range or not.
Finally, so you do not have to do this again, we save this analyzer as a template. This save the stocks in the market analyzer and the column settings so you can simply open up the template to see your scan.
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