Volatility Screener shows low volatility tickers (flats, triangles and weak trends) and high volatility tickers (active trends and impulse waves).
It is based on market movement potential relative to past prices as well as current market conditions. It can be useful both in options and stock trading.
What does the Volatility index mean?
Volatility Screener's index lets sort all stocks to identify flats or active trends. After sorting you’ll get a list of tickers with either high or low values. High index values indicate active trends, low index values — weak trends, flats, and triangles:
if you trade flats or breakouts, you need to pay attention to stocks with low index values,
if you trade impulse waves or pullbacks, you’ll often find them in stocks with high index values.
If index values are low, it may be interesting to buy straddles or strangles. If the values are high, selling options can be promising depending on other factors.
Low index values indicate that low volatility dominates in the market now, usually, there is no strong market movement. One typically can see a flat or a triangle on the chart at that time. This means that the price can move in any direction soon, breaking through the nearest support or resistance levels.
High index values indicate that the asset may be interesting for traders who trade impulse movements in the trend or expect correction waves emergence to search for pullback entry points in the direction of the trend from more attractive price levels.
Maximum and minimum index values indicate different market conditions (ranging from the flat in the run-up to strong market movements to the active phase of the trend).
The higher the screener's index, the more actively the market moves at the moment.
How to use the search field?
The search field can be used for custom requests (e.g. AAPL, 1.25, etc) to identify the market condition of a particular stock without analyzing a price chart.
Who is the screener for?
The screener is designed for private traders and investors who trade stocks and options. It can help find flats, triangles and stocks that are about to break out (low index values) as well as impulse waves and pullbacks (high index values). It is a good tool to shortlist such tickers and reduce time spent on market research.