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Alan (you still there?), All,

I ran ns2's scan (adding the volume parameter), filtered for bases or congestion that had not broken out yet, then copied those to Metastock and filtered them further for low Historical Volatility. For those unfamiliar w/HV, it is explained in the book by Larry Connors thusly:

"...all market volatility is mean reverting. That means that periods of low volatility are usually followed by periods of high volatility" and vice versa. He continues with the really interesting part:

"HV is the standard deviation of day-to-day logarithmic price changes expressed as annualized percentage. When a shorter-term HV calculation is 1/2 or less of a longer-term HV calculation, explosive market moves often follow as volatility reverts to its mean."

"I have found the 2 best periods to compare are the 6-day HV reading vs the 100-day reading (6/100) and the 10-day HV vs the 100-day reading (10/100). For example if the 6-day HV reading is 15% and 100-day HV reading is 45%, the shorter calculation (6 days) is .33 of the longer calculation (100 days). Because the is 1/2 or less of the longer period, it's highly likely a large move is imminent. (What it doesn't tell is the direction of the move. It simply indicates a large move is likely)."

I came up w/a final list of 6 stocks which are at or very near either or both the low 6 and 10 HV readings:


I think using HV in combo w/the SA might be a better way to narrow down the possiblities. Any thoughts?

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