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How to Scan for Short Squeeze in ThinkorSwim

pegasis

New member
VIP
Hi, what is a short squeeze in layman's explanation? What is the best way to scan for them in the ThinkorSwim platform? Do you know any algo to find highly shorted stocks that are about to create a short squeeze or already in short squeeze??

Is there a way to craft a scan using TOS for short squeeze candidates.. based on a sector, or float? The criteria has to do with gap up %, Share float size, % of float traded, institutional ownership %, short interest %, previous gap up day volume and highs, certain SEC filings - is it possible to build a script around these criteria? Thanks!

Thanks
 
Solution
So here's what I use as a proxy for the "Most Shorted Index", that we so often see on Zero Hedge's post-market analysis. It is commonly juxtaposed against the Russel 2000 for comparison. I manually update the stocks when necessary, with current data.

The code is nothing new; but perhaps one of the coding mavens can add functionality in "Input and Options" that would make updating the stocks easier.

Code:
declare lower;
plot x =
close("CLVS")*.08 +
close("MDR") * .083 +
close("INSG") * .083 +
close("GTT") * .083 +
close ("NVST")* .083 +
close ("ADT") * .083 +
close ("CRC") * .083 +
close ("CVM") * .083 +
close ("CRWD") * .083 +
close ("PLUG") * .083 +
close ("GME") * .083+
close ("HIIQ") *.083;

x.assignvalueColor(if x >= x[1] then...

BenTen

Administrative
Staff
VIP
According to Investopedia:

A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.

How to scan for potential short squeeze? Look for stocks with high short interest.
 

Kuwala

New member
VIP
Anyone has tries and found scanner for this? What are the possible indicators or customized algorithms for measuring upcoming short squeeze? Would be cool to have a SCAN for stocks with high short interest.

I found following indicator on TradingView for calculating short interest. Is there something similar indicator available for Thinkorswim?

Code:
=============================================
// @version=4
study("Short Interest, Shs Outstanding, & Short Ratio - by golesco", shorttitle="SI", precision=4)

// input
choice = input(title="Choice", defval="Short Volume Ratio", options=["Shs Outstanding","Daily Short Volume","Short Volume Ratio"])

// get shs outstanding from pine financial ref
shs_out = financial(syminfo.tickerid, "TOTAL_SHARES_OUTSTANDING","FY")

// get short interest from quandl:
quandl_ticker = "QUANDL:FINRA/FNSQ_" + syminfo.ticker
quandl_dly_sh_vol = security(quandl_ticker, "D", close )

float sh_vol_ratio = (quandl_dly_sh_vol / volume * 100)

// Determine values to plot with if/else
plotValue = if (choice == "Shs Outstanding")
    shs_out
else
    if (choice == "Daily Short Volume")
        quandl_dly_sh_vol 
    else
        if (choice == "Short Volume Ratio")
            sh_vol_ratio
        else
            na

// Plot variable on the chart
plot(series=plotValue, linewidth=2, title = "Selection")

=============================================

=======================================================================================
 
Last edited by a moderator:

cabe1332

Member
@pegasis Give this a try below it has worked for me very well for me.

http://tos.mx/3qzgOec

You can add the stock filters like Close, Volume, %Change yourself.

The customs studies (all are included with the shared scan above) provides uptrend and above vwap stocks. I have it as a watchlist detach from TOS.
  1. I use the TTM_Squeeze Alert study.
  2. Price is above VWAP.
  3. Moving Avg above 21, 34, 55, and 200.
Good luck!
 

Slippage

Active member
@Kuwala TTM_Squeeze is an entirely different concept having to do with Bollinger Bands and Keltner Channels. Not short squeeze.

That code posted is for TradingView, not TOS, and probably requires subscribing to not just TradingView itself but additional data feeds also, from the looks of the code. You can use TradingView for free but I think you have to pay for it before you can pay for the additional data.

Code:
// get shs outstanding from pine financial ref
shs_out = financial(syminfo.tickerid, "TOTAL_SHARES_OUTSTANDING","FY")

// get short interest from quandl:
quandl_ticker = "QUANDL:FINRA/FNSQ_" + syminfo.ticker
quandl_dly_sh_vol = security(quandl_ticker, "D", close )

As far as I know, TOS doesn't give us short interest so there's no way to scan. However, Zerohedge has some articles with lists of likely candidates for the wall street bets mob to short squeeze soon if that's what you're wanting to scan for.

I threw together a quick scan in FinViz (free) just to demonstrate and it may need further tweaking if you want to try that.
https://finviz.com/screener.ashx?v=131&f=sh_outstanding_u100,sh_short_o30&ft=4&o=-shortinterestshare

And the site BenTen posted lists them also https://www.highshortinterest.com/
 

gapcap1

New member
So here's what I use as a proxy for the "Most Shorted Index", that we so often see on Zero Hedge's post-market analysis. It is commonly juxtaposed against the Russel 2000 for comparison. I manually update the stocks when necessary, with current data.

The code is nothing new; but perhaps one of the coding mavens can add functionality in "Input and Options" that would make updating the stocks easier.

Code:
declare lower;
plot x =
close("CLVS")*.08 +
close("MDR") * .083 +
close("INSG") * .083 +
close("GTT") * .083 +
close ("NVST")* .083 +
close ("ADT") * .083 +
close ("CRC") * .083 +
close ("CVM") * .083 +
close ("CRWD") * .083 +
close ("PLUG") * .083 +
close ("GME") * .083+
close ("HIIQ") *.083;

x.assignvalueColor(if x >= x[1] then color.greeN else color.red);
 
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