ConDays
Filter
Consolidation Filter (ConDays)
Find stocks consolidating in a tight range on the daily chart in real time with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The Consolidation filter looks at the previous 40 daily candles and reports how many days a stock has traded in a narrow range. The longest consolidation it reports is 40 days.
Stocks making a run, up and down.
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Seeing a consolidating stock break out as it happens helps active traders. The Consolidation (Days) filter value changes once a day, so Streaming Alerts apply it the moment each alert fires: you see only the stocks that pass it, while they are moving.
How Trade Ideas finds it: adjust the minimum value to 7 to see only stocks with a strong consolidation pattern. Set the maximum value to 3 to see only stocks which have not had any significant consolidation. See Trade Ideas plans and pricing to run it live.
How the Consolidation filter works
This filter looks for a consolidation pattern on a daily stock chart.
The consolidation filter in stock trading is a technical tool used to pinpoint periods when a stock's price trades within a narrow range, signaling a lack of clear trend direction. This filter identifies phases of price consolidation following significant price movements. Traders utilize the consolidation filter to identify potential range trading opportunities, anticipate breakout or breakdown movements, and adjust their trading strategies based on the duration and characteristics of the consolidation phase.
Keep in mind
This looks at the daily candles for the previous 40 trading days. This does not look at today’s data.
Consolidation filter settings
Configuring the "Consolidation" filter is simple and can be done within the Window Specific Filters Tab of the Configuration Window in your Alert or Top List (Screener) window.
Here's how to set up the filter in your configuration window:
- Adjust the minimum value to 7 to see only stocks with a strong consolidation pattern.
- Set the maximum value to 3 to see only stocks which have not had any significant consolidation.
Settings
The longest consolidation we can report is 40 days. However, these very high numbers mostly report strange and unusual cases. If you are looking at consolidations, you may want to set your maximum to 25 days or lower to see more ordinary patterns.
Using the Consolidation Filter
The "Consolidation" filter can be used in various trading strategies, including:
- Range Trading: Traders may choose to buy at support levels and sell at resistance levels within the consolidation range, taking advantage of short-term price fluctuations.
- Breakout Trading: Traders may wait for a breakout from the consolidation range and enter positions in the direction of the breakout, anticipating a continuation of the trend.
- Volatility Expansion: Consolidation periods are often followed by periods of increased volatility and directional movement. Traders may use consolidation filters to identify stocks poised for significant price moves and adjust their trading strategies accordingly.
Filters to combine with Consolidation
Alerts to pair with the Consolidation filter
Categories
FAQ
Which stocks are consolidating right now?
Add the Consolidation filter (ConDays) to a Trade Ideas Streaming Alerts or Top List (Screener) window. Adjust the minimum value to 7 to see only stocks with a strong consolidation pattern. Set the maximum value to 3 to see only stocks which have not had any significant consolidation.
What is the Consolidation (Days) filter?
The Consolidation filter looks at the previous 40 daily candles and reports how many days a stock has traded in a narrow range. The longest consolidation it reports is 40 days.
How do I find stocks in a tight consolidation?
Use the Consolidation filter (ConDays) in Trade Ideas Streaming Alerts and Top Lists to find stocks consolidating in a tight range on the daily chart. The Consolidation filter looks at the previous 40 daily candles and reports how many days a stock has traded in a narrow range.