Stocks Pages: Support and DocumentationFind help and documentation on each page within the Stocks tab using the index below. This documentation explains how each page is set up, with tips on how to best use the information.
Market Momentum is an overview of the stock market. Market Momentum highlights major market indices and market rates, and also displays a market momentum summary box.
There are four major sections on the Market Momentum page:
Click here to see links to all Market Momentum charts. Percentage of Stocks Above Moving Average The formula is:
The result is the current Market Momentum Index expressed as a percentage. A link to a chart is available for the Barchart Market Momentum Index $BCMM, and for each Moving Average (more chart links below):
Market Momentum (including the advances, unchanged and declines) only takes into account those stocks trading that day, with a last price above $2 and stocks traded on the NYSE, Nasdaq or AMEX (OTCBB stocks are NOT included). Additionally, stocks must have traded for at least six months. Typically 4,000 stocks are included within the calculation on an average trading day. Advances/Declines/Unchanged by Exchange
The New Highs and New Lows total requires current daily volume greater than 10,000 shares and last price greater than $2, or last price multiplied by volume greater than 10,000 for OTCBB stocks, and last price greater than $.25. Additionally, stocks must have traded for at least six months.
This section shows a table of the major indices, with links to the quote, detailed quote, chart, opinions and cheat sheet.
The New Highs/Lows page provides a link to lists of stocks that have made or matched a new high or low price for a specific time period. By clicking on the link (the number of stocks that fit the criteria), you can view the complete list of stocks as well as other relevant information. Stocks must have traded for the specified time period in order to be considered as a new High or Low.
Overall lists include only NYSE, AMEX and NASDAQ stocks, excluding ETF's. NYSE, AMEX and NASDAQ stocks exclude unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock. The ETF links will open up within the ETF section. By clicking on the link (the number of stocks that fit the criteria), you can view the complete list of stocks: The blue bar at the top of the Summary page allows you to select the time frame for the data to display.
Weekly and Monthly data allows you to view longer-range information, including stocks that reached 20-Year Highs and Lows.
Current | Daily | Weekly | Monthly Add Chart Icons
For Current and Daily, you can choose from 1-Month, 3-Month, 6-Month, 12-Month, and Year-to-Date periods. For Weekly, you can choose from 6-Month, 1-Year, 3-Year, and 5-Year periods. For Monthly, you can choose from 2-Year, 5-Year, 10-Year, and 20-Year periods.
When on the Current view, the overview page gives you the ability to display a daily chart that graphically presents the number of stocks found in each category. Click the "Add Chart Icons" / "Remove Chart Icons" to toggle the chart links on the page. (View a complete list of the chart symbols.)
The second-level page contains all the stocks in the category you've selected. For all categories except ETFs and OTCBB, you may also filter the page my Market Cap.
-- Views -- The second-level pages contain three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
*The number of New Highs or New Lows is the number of times the stock has hit a new high price (or low price) over the given period. For example, in a 20-day period, if a stock's daily high price is always greater than the previous day's high over the 20 days, then this stock will have made 20 new highs over the 20-day period. **The Percent Range for New Highs is the difference in the high price minus the lowest price over the period divided by the lowest price over the period. The percent range for New Lows is the difference in the low price minus the highest price over the period divided by the highest price over the period. The pages are initially sorted by Symbol. You can re-sort the page by clicking on any of the column headings: New Highs/Lows only includes stocks traded on the NYSE, AMEX, Nasdaq or OTCBB exchanges with over 5 days of prices, with a last price above $0.25, and with volume greater than 1000 shares. (When viewing a Weekly report, volume is the average volume for the week and must be greater than 1,000 shares. When viewing a Monthly report, volume is the average volume for the month and must be greater than 1,000 shares.) It also breaks out ETFs into a separate category. Calculations are adjusted for stock splits but not dividend distributions. Chart Symbols
52-Week Highs and 52-Week Lows contain the stocks that have made a new 52-week high or 52-week low price, or matched a previous 52-Week High or Low price.
Filter: The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
The 52-Week Highs/Lows page is updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The pages will list stocks that have made a new 52-Week High or Low, and stocks that matched their prior 52-Week High or Low.
To be included in the 52-Week Highs and Lows pages, a stock must have traded for at least 52 weeks. It also has to be trading between $2 and $1000 and have daily volume above 10,000 shares (for the major exchanges). OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000. Calculations are adjusted for stock splits but not dividend distributions. A more detailed end-of-day summary of new high and new low stock prices is available in the New Highs/Lows page, which is also contained within the Stocks tab.
The All Time Highs and All Time Lows pages contain the stocks that have made a new all time High or all time Low price or matched a previous all time High or Low price during the current trading session. Up to 25 years of historical price data is used to identify the stocks that appear on these pages.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
The page is initially sorted by Symbol. You can re-sort the page by clicking on any of the column headings: 
The All Time Highs/Lows pages are updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically added to the page until the site performs its 10-minute update. The pages will list stocks that have made a new all time High or Low during the current trading session, and stocks that matched their prior all time High or Low.
To be considered for the All Time Highs and Lows pages, a stock has to have at least six months of trading activity. It must also be trading between $2 and $1000 and have daily volume above 10,000 shares (for the major exchanges). OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000. Calculations are adjusted for stock splits but not dividend distributions.
Volume Leaders lists the stocks with the greatest volume for the day.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The pages are initially sorted in descending Volume sequence. You can re-sort the page by clicking on any of the column headings: The Volume Leaders page is re-ranked every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet for individual symbols.
To be included in the Volume Leaders page, a stock has to be trading above $2. OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000.
Percent Advances lists stocks with the highest Percent Change (the difference between Previous Close and the Last Price), while Percent Declines lists stocks with the lowest Percent Change. These pages can help you identify the stocks with the most price movement from the close of the market yesterday.
This page differs from the Range Advances and Declines, where Range Change is calculated based on Today's Open Price. The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The pages are initially sorted by descending or ascending Percent Advance. You can re-sort the page by clicking on any of the column headings: The Percent Advances and Declines pages are updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Percent Advances and Declines pages, a stock has to be trading between $2 and $1000 and have daily volume above 10,000 shares (stocks must have a daily volume greater than 50,000 for the Overall U.S. Exchange page). OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000.
Price Advances and Price Declines lists stocks in order of price increase or price decrease for the day.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The pages are initially sorted by descending or ascending Price Change. You can re-sort the page by clicking on any of the column headings: The Price Advances and Declines pages are updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet. Main View: Symbol, Name, Last price, Change, Percent Change, High, Low, Volume, and Time of last trade (EST). Technical View: Symbol, Name, Last price, Today's Opinion, 20-Day Relative Strength, 20-Day Historic Volatility, 20-Day Average Volume, 52-Week High and 52-Week Low. Performance View: Symbol, Name, Last price, Weighted Alpha, YTD Percent Change, 1-Month, 3-Month and 1-Year Percent Change. To be included in the Price Advances and Price Declines pages, a stock has to be trading between $2 and $1000 and have daily volume above 10,000 shares (stocks must have a daily volume greater than 50,000 for the Overall U.S. Exchange page). OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000.
Range Advances lists stocks with the highest Range Change (the difference between today's Open and the Last Price), while Range Declines lists stocks with the lowest Range Change. These pages can help you identify the stocks with the most price movement over the course of the current trading session.
This page differs from the Percent Advances and Declines, where Percent Change is calculated based on Previous Close Price. The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The pages are initially sorted by descending or ascending Range Percent. You can re-sort the page by clicking on any of the column headings:  The Range Advances and Declines rankings are updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Range Advances and Declines pages, a stock has to be trading between $2 and $1000 and have daily volume above 10,000 shares (stocks must have a daily volume greater than 50,000 for the Overall U.S. Exchange page). OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000.
The Gap Up page lists stocks where the current session Low is higher than the previous session's High.
The Gap Down page lists stocks where the current session High is lower than the previous session's Low.
A gap is simply a price level where a market does not trade. In a rising market, a gap occurs when prices open at a higher level than the previous session's high and do not trade lower to fill the space. The reverse is true for a falling market. Gaps signal market strength and weakness, respectively. The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
Types of Gaps There are four basic types of gaps and they are only distinguished by their placement within the chart pattern. These are called breakaway, continuation, exhaustion and "other." The last category is simply a catch-all for gaps not interpreted as any of the other three. TIP: Use the FlipCharts link at the top of the page to view charts for all the symbols listed on the page. The charts provide an indication of the type of pattern the gap is making. Breakaway gaps occur at the completion of an organized price pattern and usually signal the start of a significant price move. They are important because they emphasize that there was a breakout and this becomes an even stronger signal when it occurs with higher volume. Heavy volume breakaway gaps are usually important levels of support and resistance over the longer term as well. When market participants are adjusting their activities in a consolidation pattern such as a rectangle, triangle or head and shoulders, they buy and sell to lock in profits and limit losses within a defined price range. Whether these ranges are constant (rectangle) or tightening (triangle), value in the market remains at accepted levels. At the breakout, market opinion has shifted. A gap signifies that a very large share of market participants have changed their opinions together and is a very powerful indicator. Once a rally or decline is underway, the market pauses and retraces as participants again position themselves. These sorts of patterns are to expected but sometimes market opinion is so strong that there is no time for normal profit taking and last chances to establish a position (long or short, depending on the market). When the majority of participants think a market will continue its move, the market can simply jump to those new prices immediately and this is known as a continuation gap. Because these types of gaps typically occur at the half way point of a move they are sometimes called measuring gaps. Continuation gaps can occur alone, as a series of gaps or not at all. The last of the classified types is called an exhaustion gap because it occurs near the end of the move to signal a last push toward new highs or lows. It is sometimes to difficult to identify this type of gap because it appears in a trending market just like a continuation gap. Price action in the days immediately following the gap help the analyst determine which kind of gap it was. Whereas continuation gaps are following by a continuing strong trend, exhaustion gaps are followed by more congested, sideways market action. Such signals as one-day reversals help identify which gap has occurred. Prices usually trade back to fill the gap and when they do, it is a good sign that the move is over. The gap represents the market "frenzy" where all participants are buying or selling at any price just to be involved. The smart money uses this activity to take profits, leaving only the weak participants left to try to push the market further. A common reversal pattern seen with exhaustion gaps is called an "island reversal." After a market gaps (exhaustion), it usually trades for a few days in a small range. If the relative numbers of weak participants is high, those last minute buyers or sellers quickly reverse their positions to cause a gap in the opposite direction. The shape of the gap, congestion and reverse gap looks like an island surrounded by water. This sort of pattern usually signals a strong change in trend. The final category for gaps does not really have a name but has been called "common" or "unclassified" gaps. These types of gaps occur within price patterns or congestion zones and are the least meaningful of all gaps. They generally signify a lack of direction in the market or lack of conviction of the market participants. News and sentiment affect these markets more than others simply because they are less liquid at that time. The pages are initially sorted by the Gap (Up or Down). Gap Up: the current session's Low is higher than the previous session's High. Gap Down: the current session's High is lower than the previous session's Low. You can re-sort the page by clicking on any of the column headings:  The Gaps Up and Down pages are updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically added or deleted from the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Gaps Up / Gaps Down pages, a stock has to be trading between $2 and $1000 and have daily volume above 10,000 shares. OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000. Additionally, a stock must have traded for at a least 1-week to be considered.
Price Volume Leaders lists stocks in order of Price Volume Ratio. Price Volume is simply the Price multiplied by the Volume; the numbers are listed in thousands.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The page is initially sorted by descending Price Volume. You can re-sort the page by clicking on any of the column headings: The Price Volume Leaders page is updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Price Volume Leaders page, a stock has to be trading above $2. OTCBB stocks have to be trading above $0.25 and have a (daily volume * last price) above 10,000.
"Volume Percent Advance" is today's Volume divided by the 20-Day Average Volume. Stocks are listed in descending order of the Volume Percent Advance on this page.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange-- The page can be further classified by exchange. The individual exchange listings do not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock.
--By Market Cap--
--By Price--
The pages are initially sorted by descending Volume Percent. You can re-sort the page by clicking on any of the column headings: The Volume Percent Advances page is updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Volume Percent Advances page, a stock has to be trading above $2 and have a daily volume greater than 50,000 for the Overall U.S. Exchange page (there are no volume restrictions for individual exchange pages). OTCBB stocks have to be trading above $0.25 and have a (daily volume times last price) above 10,000.
Top Trading Stocks ranks stocks by Trading Liquidity (a ratio defined as 100-Day Average Volume divided by Shares Outstanding). Trading Liquidity provides an indication of what percentage of Shares Outstanding turns over each day. Barchart uses a long-term 100-Day Average Volume in its calculation to ensure that stocks presented in the report are consistently high-volume stocks, rather than stocks whose trading volume was high for a short period of time.
The initial page displayed is for US Exchanges (includes only NYSE, AMEX and NASDAQ stocks, and does not include ETFs, unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock). --By Exchange--
--By Market Cap--
The Top Trading Stocks page is initially sorted by descending Trading Liquidity, or Ratio (100-Day Average Volume divided by Shares Outstanding). You can re-sort the page by clicking on any of the column headings: The Top Trading Stocks page is updated every 10 minutes throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) However, stocks are not automatically re-ranked on the page until the site performs its 10-minute update. The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
To be included in the Top Trading Stocks page, a stock has to have a minimum Shares Outstanding of 10,000 and minimum 100-Day Volume of 100,000.
Sector Heat Maps provide a quick visual view of the sectors and how they are performing on the day, as well as how they are performing versus other sectors. Heat Maps allow you to scan the markets quickly, compare sectors, and click on a sector to drill down further.
Sector Heat Maps are updated every 10 minutes throughout the trading day. Futures prices are delayed 10 minutes, per exchange rules, and trade times are listed in CST.
The Market Indices pages are divided into an Overview page with a list of the major market indices, and separate pages that cover the nine major indices.
Market Indices Overview Page This page shows thumbnail charts of the Dow, S&P 500 and Nasdaq at the top, followed by a list of the major market indices. Click on any of the indices in the quoteboard to go directly to its Quote page. Market Indices are updated every 10 seconds throughout the trading day. You will see new price data appear on the page every 10 seconds for the first minute you visit the page, as indicated by a yellow "flash". (Prices are updated every 1 minute thereafter.) The Market Indices Overview page contains three standard views, and FlipCharts are available for the indices listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
For indices with available data, a table is presented with links to charts that show the Percentage of Stocks Above the 20, 50, 100, 150 and 200 Day Moving Average:
The Major Indices page contains the three standard views, and FlipCharts are available for the component ticker symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel.
The "Hot Stocks' pages highlight stocks that have unusually large price movement relative to their usual pattern, meaning stocks that are seeing breakouts or abnormally large bull or bear moves. There may be trading opportunities in these large-movement stocks. Stocks are ranked by Standard Deviation. You can re-sort the page by clicking on any of the column headings:
The page contains three standard views, and FlipCharts are available for the symbols listed on the page. My Barchart members also have the option to display the data using any Custom View you've created, and the data can be downloaded to Excel. Each view contains links to the Detailed Quote, Chart, Opinions, and Cheat Sheet.
The page can be classified by exchange (NYSE, AMEX, Nasdaq, ETFs, OTC/BB, Pink Sheets, Toronto (TSX), Toronto Venture, London (LSE), or India (NSE)). Overall listing only includes NYSE, AMEX and NASDAQ stocks, excluding ETF's. NYSE, AMEX and NASDAQ stocks exclude unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock. The ETF links will open up within the ETF section. Current | Daily | Weekly | MonthlyIn addition, there are four time-frames to choose from:
In order to be considered for inclusion in the "What’s Hot/Not" list, a stock must have a price between $2 and $1000, and a 20-Day Average Daily Volume of at least 10,000 shares. OTCBB stocks have to be trading above $0.25 and have a (20-Day Average Volume * Last Price) above 10,000. Price movement on the "What's Hot" page is defined in terms of the number standard deviations the stock has moved in the latest trading session. Defining price movement in terms of standard deviations is preferable to using percentage change because using standard deviations puts all the stocks on a level playing field. There are categories of stocks that are typically more volatile and have larger percentage price changes than other stocks. For example, low-priced small-cap stocks or high-tech stocks are typically much more volatile than lower volatility stocks such as utility stocks. If we used percentage change to define price movement, then high-volatility stocks would always dominate the "What’s Hot" list and we would miss lower-volatility stocks that might have an unusually large movement on a particular day. In order to calculate the number of standard deviations that a stock moves in the latest session, we use the following formula:
In this formula we are simply comparing the latest price change to the standard deviation of the price returns over the last 20 sessions. We are using the "price return" for the daily change because this is how historical volatility is calculated. A "price return" is simply the natural log of the latest close divided by the previous close. Historical volatility is the measure that we use for the comparison in the denominator of our equation because historical volatility is simply defined as the standard deviation of the price returns, factored up to an annualized number. Since historical volatility is typically expressed as an annualized number, we need to reduce it to a daily figure for our daily "What’s Hot" calculation by dividing it by the square root of 252 (i.e., the approximate number of trading days in a year). Let's look at an example. A123 Systems (ticker: AONE) on the close of Friday, May 14, 2010 had the following input figures: 5/10/2010 close was $11.46, 5/09/2010 close was $10.33, and the 20-day historical volatility on 5/10/2010 was 66.69%. Let calculate how many standard deviations A123 Systems moved on 5/10/2010:
This indicates that A123 Systems on May 14, 2010 moved by 2.47 standard deviations, which is an unusually large move. According to the normal distribution curve, we would expect a move of more than two standard deviations less than 5% of the time, indicating how unusually large A123 Systems’s price change was on May 14. The "What’s Hot" report is also available for weekly and monthly price changes, in which case the price change over the past week or month is divided by the 20-week or 20-month standard deviation, respectively. Interpretation The movement of a stock in terms of its standard deviation is also useful to traders because it can be translated into probability terms. According to the normal distribution bell curve, a stock will show a move of less than one standard deviation (plus or minus) about two-thirds of the time, a move of less than two standard deviations 95% of the time, and a move of less than three standard deviations 99% of the time. Thus, if a trader sees a stock that has moved 3 standard deviations, the odds of that event are only 1% (or 1 in 100), meaning that stock is showing a major move from a statistical standpoint that is outside the realm of normal statistical expectations.
News and Commentary on the Stock Markets is provided by The Associated Press (AP), the essential global news network delivering fast, unbiased news from every corner of the world. AP News is conveniently broken down into the following categories:
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