Squeezing Range
by @scanx
Squeezing Range Stocks
What are Squeezing Range Stocks?
Squeezing Range Stocks are stocks that are trading in a very narrow price range. This means the price fluctuations are minimal, indicating reduced volatility. Typically, this kind of price action happens during consolidation, where buying and selling are balanced, and the stock is neither moving up nor down significantly. When the price of a stock squeezes into a tight range, it often signals that a major price move may be on the horizon. Traders closely watch these stocks as they could break out in either direction, offering potential trading opportunities.
What do Squeezing Range Stocks Tell Us?
Squeezing Range Stocks indicate that the stock is in a phase of low volatility and consolidation. This usually means that the market is undecided, with neither buyers nor sellers showing enough strength to move the price significantly. Such periods of low volatility can be followed by a sharp movement, either upwards or downwards, as market participants take positions when the price breaks out of the narrow range. Essentially, squeezing range stocks hint at a build-up of energy, and traders see them as potential setups for future volatility.
Filters Used to Sort the Above Stocks
1. Upper BB - Lower BB < Average True Range x 2
This filter is used to find stocks where the Bollinger Bands are narrow, indicating reduced volatility and consolidation. The comparison with Average True Range helps identify stocks that are likely to break out, as low volatility phases often lead to significant price movements. These filters are used to spot stocks in a phase of low volatility, suggesting potential breakout opportunities.
Key Takeaways
1. Low Volatility Phase
Squeezing range stocks are in a phase of reduced volatility, which can indicate that the market is undecided, with price movements being minimal. Such phases often come before larger moves, as the stock consolidates before deciding on a direction.
2. Potential for Breakout
When a stock is trading in a narrow range, it often suggests a potential breakout is imminent. This could lead to either a bullish or bearish trend, depending on which side gains control, making these stocks important for traders looking for new opportunities.
3. Balance Between Buyers and Sellers
During a squeezing range, the price action reflects a balance between buying and selling forces, resulting in tight trading ranges. This balance often precedes a tipping point where one side takes over, causing a sharp price movement.
4. High Risk-High Reward Setup
While squeezing range stocks can offer lucrative opportunities for sharp price movements, they also come with the risk of false breakouts. Traders need to be cautious and use additional indicators to confirm the direction before taking action.
5. Market Uncertainty and Price Movement
Squeezing range stocks reflect a period of market indecision, where price movement is minimal and volatility is low. This phase could end with a significant breakout, either to the upside or downside. Investors should be aware of this buildup of energy, as it indicates a potential sharp price movement that could impact trading strategies.
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Pinpoints stocks with tightening price bands indicating a potential breakout or breakdown
Upper BB - Lower BB Average True Range x 2
Price | Change | Price %Change | Volume | PE Ratio | Market Cap | |
|---|---|---|---|---|---|---|
| 2,067.40 | 27.00 | 1.32% | 4,72,182 | 83.44 | 2,07,325 | |
| 2,267.90 | -42.90 | -1.86% | 11,70,152 | 32.85 | 1,84,276 | |
| 3,820.80 | -18.20 | -0.47% | 3,94,926 | 21.34 | 1,53,393 | |
| 11,181.00 | -161.00 | -1.42% | 58,889 | 14.52 | 1,24,437 | |
| 1,511.60 | 10.70 | 0.71% | 9,64,611 | 22.30 | 1,22,103 | |
| 1,973.90 | 17.00 | 0.87% | 1,97,253 | 34.78 | 98,301 | |
| 96.62 | 0.51 | 0.53% | 59,51,146 | 33.96 | 80,507 | |
| 3,874.30 | 3.40 | 0.09% | 28,300 | 56.67 | 60,557 | |
| 1,790.10 | -21.40 | -1.18% | 1,55,242 | 31.30 | 51,018 | |
| 2,597.70 | -25.20 | -0.96% | 2,73,237 | 48.69 | 50,268 | |
| 131.12 | -1.51 | -1.14% | 46,78,330 | -156.12 | 37,496 | |
| 703.75 | 7.10 | 1.02% | 3,03,786 | 100.21 | 35,606 | |
| 346.35 | -0.45 | -0.13% | 76,635 | 63.00 | 31,993 | |
| 404.50 | 3.90 | 0.97% | 7,85,695 | 216.35 | 30,260 | |
| 1,850.40 | 30.40 | 1.67% | 2,40,417 | 39.61 | 28,987 | |
| 1,430.90 | 29.10 | 2.08% | 3,11,922 | 32.46 | 27,125 | |
| 992.10 | -5.50 | -0.55% | 54,590 | 82.28 | 25,291 | |
| 3,052.60 | 11.40 | 0.37% | 34,058 | 50.23 | 22,961 | |
| 1,287.70 | 28.60 | 2.27% | 2,91,572 | 151.01 | 20,605 | |
| 518.30 | -5.20 | -0.99% | 2,51,489 | 63.92 | 19,828 | |
| 941.80 | -4.35 | -0.46% | 59,798 | 35.77 | 19,790 | |
| 1,557.90 | -0.30 | -0.02% | 9,576 | 45.10 | 17,249 | |
| 14,237.00 | 32.00 | 0.23% | 1,209 | 45.39 | 16,271 | |
| 501.95 | 1.70 | 0.34% | 69,194 | 109.02 | 15,885 | |
| 1,127.70 | 12.40 | 1.11% | 85,318 | 21.66 | 14,486 | |