Intraday Price, Range and Volume Filter for Trade-Ideas

The filters in this next lesson are fairly straightforward, but there are a few details I want to highlight.

In a previous lesson I showed you the formulas for the size of the weekly and monthly range, along with the price movement for these time periods. The intraday versions of these filters work in a similar way. The 15 minute range is the difference between the high and the low for the last 15 minutes. The 5 minute price movement is the difference between the price 5 minutes ago and the current price. These are all available as dollars or percent.

Intraday volume is similar. We look at the total volume for the last 5, 10, 15, or 30 minutes. These are always listed in percent. 200 percent means that the stock has traded twice as much as it normally does in the same time frame.

Now let's look at some special cases. First, what happens if I'm looking at the 10 minute price change when we are in the middle of a 10 minute candle? That's simple. We don't look at 10 minute candles. We always look at one minute candles. For the 10 minute filters, we always look at the last 10 complete candles. If a candle in in progress, then we also look at that candle. So the 10 minute filters actually look at a time frame of 9 to 10 minutes.

These examples only show a 10 minute filter, but the rules are the same for other time frames.

Next, what happens if there is no trading at all during one or more candles? Different software packages handle this case in different ways. For these filters we fill in the missing time periods with very simple candles. Notice that these 10 minute filters will always look back 10 minutes, regardless of how much or little the stock traded in that time.

Finally, what do these filters show in the morning, before we have a lot of candles? If necessary, we look at pre-market data. At 9:35, the 10 minute filters will look at data from 9:25, 5 minutes before the open. These filters never look at yesterday's data. If we do not have 10 minutes worth of data, then we'll look at all the data that we do have.

Some of our filters use other rules for these special cases. I put this group of filters all into one lesson because they all follow the same rules.

Category:

Education

Tags:

• Stock
• trading
• alerts
• filters
• settings
• scanner