- The Volatility Ratio identifies days with exceptionally wide trading ranges (the distance between High and Low) and is used to signal likely reversal days.
- Details of the indicator can be found at Volatility Ratio (Schwager).
- This stock screen combines well with Volume Spikes.
- Volatility Ratio (Schwager) > 2.0
The indicator gives a reading greater than 2 when the true range is more than double its 14-day exponential moving average.
To Set the Volatility Ratio screen:
- Select the Volatility Ratio (Schwager) filter
- Select the amount the Volatility Ratio would be greater or less than, using the drop down menu
- Enter the number of days within which the signal must have occurred or excluded
- Click on the Add button to add the filter.