Range Contraction

Table of Contents

Range contraction refers to a stock pattern where a stock’s trading range gets smaller every day.  A stock’s trading range is the difference between the high for the day and the low for the same day.  If a stock’s trading range yesterday was smaller than its range the day before yesterday, we said the stock had a range contraction.  If the day before yesterday’s range was smaller than the range of the day before that, then the stock had a range contraction for two consecutive days.  Set the min range contraction filter to 2 to see stocks like the one we just described.

Range explosion refers to the opposite pattern.  These are stocks with a range that has grown larger each consecutive day.  Use negative numbers to find these patterns.  Set the max range contraction to -3 to find stocks which have had a range explosion for at least three consecutive days.

These filters always start with yesterday’s trading and work backwards.  Use other filters and alerts to see what the stock is doing today.  For example use the Daily highs resistance and Daily lows support alerts, with these filters, to find stock which were in a range contraction pattern but are breaking out.

Relevant scans:  Range Contraction, Range Explosion.

Filter Info for Range Contraction [RC]

  • description = Range Contraction
  • keywords = Changes Daily  
  • units = Days
  • format = 0
  • toplistable = 1
  • parent_code =