Chris, the volatility indicator that I use is specific to AIQ software. However, I just got MSWIN yesterday, and as soon as I figure out the formula, I'll let you know.
I basically explained my bottom fishing approach last time. I look for stocks that have stopped dropping and are starting to base. I watch them until volatility has decreased sharply. I look at the MACD histogram and RSI Wilder for positive divergences. If the divergence is on the weekly chart, the move will be bigger, but take a little longer to occur. I look for directional movement indicator to turn positive. I also look for the Positive Volume indicator to turn positive. AIQ has a Velocity indicator that I like to see piercing the zero line. I watch stochastic to see if it is turning positive. I watch volume -- usually when it hits bottom there's big volume as the last die hards throw in the towel. Then when volatility declines, volume shrinks. Usually volume will be very low right before the big move. Interestingly, bid-ask spreads often narrow as well.
Take a look at the charts of the following which I own and which are in the process of moving up dramatically: AAM, JC, PXR (which actually has a nice looking chart that you might see on Richard's BBB scan), VARL, TSII, SAM, DEW, OE, CTII. Note the low price on most, which gives me a 10-30% return with a relatively small move up. I also can get 500-1000 shares, while committing a relatively modest sum for each.
Jan
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