Significant volatility expansion (ATR rising >30%) accompanied by a price breakout and volume surge, signaling the start of a new trend.
Stocks matching this pattern right now appear in the list. Select one to see its chart and backtested strategy performance.
Part of Breakout Stocks Today
No stock is in ATR Expansion Break on the Daily chart right now. The screen re-evaluates on every daily close; the app alerts the moment one enters.
The Average True Range (ATR, 14-period) measures average daily price movement. Comparing today's ATR to the ATR five bars ago detects whether volatility is expanding -- the 1.3x threshold means today's ATR is at least 30% higher than it was five sessions back. This is a rising-volatility signal, not just a high-volatility one. The "close above prior high" filter adds bullish directional confirmation to the volatility expansion. Volume above 1.5x the 20-period average validates that the expansion is backed by real market participation. Three simultaneous conditions: volatility rising (ATR expansion), price breaking out (close above prior high), and conviction (elevated volume).
ATR Expansion Break is most powerful when it fires after an extended low-volatility compression phase -- the transition from contraction to expansion is where the largest moves originate. on the Daily chart, this signal can mark the beginning of multi-week trends. On 5-min and 1-hour charts, the same logic applies intraday. Key failure modes: (1) ATR expansion driven by a news catalyst (earnings, macro event) is inherently less reliable for technical continuation -- the information has already been priced in the expansion bar. (2) Volatility expansion without trend alignment fails frequently: a stock breaking to new highs after ATR expansion in an uptrend is very different from the same setup in a downtrend. (3) The 5-bar lookback for ATR comparison is relatively short -- in choppy markets, ATR fluctuates enough that brief spikes trigger the screen without representing genuine regime shifts. For sustained high-volatility candidates, see High ATR. For the volatility compression setup that precedes many ATR expansion breaks, see Low Volatility Compression and Bollinger Squeeze Break Bull.
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This screen finds stocks where the Average True Range (ATR) has increased more than 30% compared to five bars ago, price has closed above the prior high, and volume is above 1.5x the 20-period average. It detects the moment a stock transitions from low to high volatility regime with a directional breakout. Momentum traders and volatility traders use this to catch the early stage of a high-velocity move before the broader move fully develops. Common search phrases: "ATR expansion breakout", "volatility surge breakout stocks", "expanding range directional break".
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