Whipsaw stocks
Five or more of the last twenty sessions moved over 3% either way. A stop in these names gets hit on noise.
Five or more sessions that moved more than 3% in either direction, out of the last twenty, is a stock that is being repriced violently and often. `abs(change)` folds the two directions into one count, which is exactly what a volatility scan wants: a stock that gaps up 4% and gives it back the next day has had two such sessions, not zero. I read this one as much as a list to avoid as a list to trade. Any stop inside a 3% band on these names is noise, and any position has to be sized for it. Read the guide: Scanning the candle body, not the close →
More volatility:Bollinger squeezeWide-range moversGap up and holdGap down and failUp 15% in a month
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