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Volatility scan

Low ATR Uptrend Screener

This scan finds stocks whose average daily range (ATR %) is below 1.5% while the price is above the 50-day average and the 50-day is above the 200-day.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: atr below 1.5% and close above 50 day sma and 50 day sma above 200 day sma

  1. ATR%(14) < 1.5
  2. Close > SMA(50)
  3. SMA(50) > SMA(200)

Find US stocks where the daily range, ATR % (14) is below 1.5; and the closing price is above the 50-day simple moving average; and the 50-day simple moving average is above the 200-day simple moving average.

Formula view
atr_pct(14) < 1.5
AND close > sma(close, 50)
AND sma(close, 50) > sma(close, 200)
Example chart: Quiet uptrend (low ATR)Daily candles of a made-up sample stock with 50-day SMA; 200-day SMA; Lower panel: ATR % (14), dotted line at 1.5. The shaded day is the day the scan fired.
  • 50-day SMA
  • 200-day SMA
  • Lower panel: ATR % (14), dotted line at 1.5
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Not every trader wants big swings. Stocks that trend up with small daily moves are easier to hold, need tighter stops, and allow larger positions for the same risk.

ATR % is the average true range of the last 14 days shown as a percentage of the price. Below 1.5% means the stock usually moves less than 1.5% a day.

How traders use it

  • Good for position traders and anyone who dislikes big daily swings.
  • Set the stop at a multiple of ATR, for example 2 x ATR below the entry.
  • Combine it with dividend or quality rules for a calmer list.

Watch out for

  • Quiet stocks can move sharply on surprise news, such as earnings.
  • Low volatility often comes with lower returns.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is ATR in stocks?

Average True Range measures how much a stock moves on a typical day, including gaps. J. Welles Wilder created it.

How do traders use ATR for stops?

A common way is to set the stop 1.5 to 3 ATRs away from the entry, so normal daily noise does not hit it.

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