Volume Filtering¶

Motivation¶

Divergence signals on illiquid tickers are prone to false triggers due to erratic prints. Volume filtering restricts results to symbols with sufficient trading interest.

Parameter¶

--min-volume N

Applied to the most recent bar's volume (or optionally average in future enhancement).

Usage Examples¶

stockcharts-rsi-divergence --min-volume 2_000_000
stockcharts-rsi-divergence --type bullish --min-volume 5_000_000 --min-price 10

Impact¶

Reduces total divergence count.
Increases average reliability of remaining setups.
Helps align with institutional-grade liquidity.

Suggested Thresholds¶

1,000,000: Light filter
2,000,000: Moderate baseline
5,000,000: High liquidity focus

Extended Guide (Merged)¶

Why Volume Matters¶

Low volume → wider spreads, manipulation risk; high volume → tighter spreads, reliable price action.

Recommended Thresholds By Style¶

Day: ≥1,000,000; Swing: ≥500,000; Position: ≥300,000.

Progressive Filtering Workflow¶

stockcharts-screen --color green --changed-only --min-volume 500000 --output green_500k.csv
stockcharts-screen --color green --changed-only --min-volume 1000000 --output green_1m.csv
stockcharts-screen --color green --changed-only --min-volume 5000000 --output green_5m.csv

Combined Daily + Weekly Confirmation¶

Use same volume threshold across intervals to reinforce liquidity consistency.

Volume Calculation¶

Current implementation uses last bar volume; future enhancement: rolling average (20-bar) or relative volume.

Quick Reference Threshold Categories¶

<100K Avoid; 300K–500K Moderate; 500K–1M Good; 1M–5M High; >5M Very High.

Future Extensions¶

Average volume (20-day) filtering.
Relative volume measures (current / average).
Combined price*volume market cap proxy.