Smooth Volatility Stock Finder - Early Stages/Discussions

[MURFMURF]

I've been working on new trading strategy over the last month.

My working title "Smooth Volatility Stock Finder".

It's currently in my head. This is an effort to start conveying to a group discussions for refinement for different helpful points of view. Maybe something like this exist already and I just don't know it.

At this point of the effort is a discussion stage, not ready for programming yet.

It's worked well for me over the last month adding 13% to my portfolio in very good safe manor without a tremendous amount of work. Thanks to this site and all the great people here. I've taken the indicators this site has proved thus far. This is rather looking to expand on those tools.

Step 1: See if anyone wants to talk about this, lol.

In simple terms to start, how to scan to find more stocks that have similar price action to COP, yet remove tickers like UNG.

Step 2: Convey the concept of Good, Ok and Bad.

Step 3: Start sorting out the nuances of the differences in discussion group.

I'll add comments later today about the balloons.

GOOD

https://imgur.com/a/VB6Vp8t

OK

https://imgur.com/a/KCUpFu5

BAD

https://imgur.com/a/mh1fPbC

 

[MURFMURF]

All variables adjustable at this point.
Balloon 1: A stock that has gapped no more than ~14 times in 12 month period
Balloon 2: Of the 14 reversal over 12 month period. 80% of the reversals took place over 3 days in term of smooth price action.
Balloon 1B: When the stock gapped, it does not gap more that X amount by % over 12 month time frame.
Balloon 2B: The stock did not have any candles this long over 12 months. Looking for more stable price movements.
Balloon 1C & 2C: Additional examples of too large a gap to consider as stable price movement in stock

 

[MURFMURF]

Here is my first version of the script at sort of works.

# --- User Inputs ---
input priceMovementPercent = 30; # Price movement percentage (e.g., 30%)
input lookbackPeriod = 252; # Number of bars in a year (typically 252 trading days)
input maxGaps = 5; # Maximum number of gaps allowed in the given time frame
input maxGapPercent = 5; # Maximum allowable gap size percentage (e.g., 5%)

# --- Price Movement Calculation ---
def priceChange = (close - close[lookbackPeriod]) / close[lookbackPeriod] * 100;

# --- Gap Detection ---
def gapUp = (open > close[1]) and ((open - close[1]) / close[1]) >= 0.01; # Gap up of at least 1%
def gapDown = (open < close[1]) and ((close[1] - open) / close[1]) >= 0.01; # Gap down of at least 1%

# Calculate gap size percentage
def gapUpSize = (open - close[1]) / close[1] * 100;
def gapDownSize = (close[1] - open) / close[1] * 100;

# Count the number of gaps (up and down) in the given time frame
def gapCount = Sum(gapUp or gapDown, lookbackPeriod);

# --- Scan Condition: Price Movement + Gap Count + Max Gap Size Filter ---
plot scanCondition = (priceChange >= -priceMovementPercent and priceChange <= priceMovementPercent) and
(gapCount <= maxGaps) and
(gapUpSize <= maxGapPercent and gapDownSize <= maxGapPercent);