November 10th, 2011, 2:27 pm
Say I got the EOD price of a stock for the past 50 business days and the stock is trading its 50 day high.I want to know if this stock has been trading in a tight range and broke out just in the last 1 or 2 days.In other words, I want to filter out the stocks reached a 50 day high because it is continuously going up with minor reactions.I thought about various ideas:1. counting the # of turns: a temp high follow by a few declining days2. compare the range of 50 day high/low with the range of avg price in the 50 days +/- 2*sd3.Maybe identify support/resistance level? But this could be very different from my objective.but there are draw backs to each approach.Any suggestions?