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Multi-Day Range Filter

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Transcript

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The next set of filters looks at a stock’s historical data for the last 5, 10, or 20 trading days. All of the examples in this video will demonstrate the 20 day filters. The formulas are the same for the 5 and 10 day filters. Let's start with the simplest of these filters. You can filter stocks based on the size of their 20 day range. Let's make this example simple and say that the lowest price in the previous month was $5 and the highest price was $10. In this case the range for the month is exactly $5. If you set your maximum range to $4, you won't see any alerts for this stock. Notice that the range is based on the high and the low of the previous 20 trading days, but not the current day. Another pair of filters will let you look at the range as a percent. This compares the size of the range to the current price of the stock. We can see that this stock has a large range compared to its current price. What happens if the price goes up? The range is still $5, but it doesn't seem as big any more. We can also compare the current price to its position in the 20 day range. These filters work just like the position in range filters that we discussed in a previous lesson. 50% means the middle of the range. 0% means the bottom of the range. Negative numbers mean that the price is below anything we've seen in the previous 20 days. Etc. You can also look at how much the price has moved in the last 20 trading days. These filters compare the price at the close 21 days ago to the current price. We use the standard formulas to show the price change. So positive numbers mean that the stock has been moving up. Negative numbers mean that the stock has been moving down. 0 Means that the stock's current price is the same as it was 20 days ago. For all of these filters we are looking at 20 trading days. For stocks that don’t trade every day, this can spread over any amount of calendar time. For active stocks, 20 trading days will be exactly 4 weeks or just under a month.

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