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Dollar volume measures the value of shares traded during a bar. It helps me compare trading activity between stocks with different share prices. In TC2000, the basic dollar volume PCF formula is price multiplied by volume.
Below are the formulas I use for current-bar dollar volume and a five-bar average, along with examples of how to change the minimum threshold. If you use these on a daily chart, the first formula checks the current daily bar and the second averages the last five daily bars.
TC2000 dollar volume PCF formulas
1-day dollar volume formula for TC2000
To screen for stocks with more than $2 million in dollar volume on the current bar, use:
C * V > 2000000Here, C is the current bar’s closing price and V is its volume. For example, if a stock closes at $20 and trades 100,000 shares, its dollar volume for that bar is:
$20 * 100,000 shares = $2,000,000Because the condition uses >, a bar needs to be above $2 million to pass. If you want a different threshold, replace 2000000 with the dollar amount you want to screen for.
Use a shorter version with /100
If you prefer smaller numbers in the formula, you can divide both sides of the comparison by 100. This version is mathematically equivalent to the $2 million condition above:
C * V / 100 > 20000For a $100 million current-bar threshold, the equivalent versions are:
C * V > 100000000C * V / 100 > 1000000Use the threshold that fits your scan. In my TC2000 swing trading scan, I use a much higher dollar-volume minimum than the $2 million example here.
5-day average dollar volume formula
A single day can have unusually high or low volume, so I sometimes prefer to screen for average dollar volume across several bars. For a five-bar average above $2 million, use:
AVG(C * V, 5) > 2000000This averages the dollar volume calculated for each of the last five bars. On a daily chart, it is a five-day average. The equivalent version using smaller numbers is:
AVG(C * V, 5) / 100 > 20000For a five-day average above $100 million, replace the threshold like this:
AVG(C * V, 5) > 100000000You can also write the scaled version as:
AVG(C * V, 5) / 100 > 1000000How to add a dollar volume PCF in TC2000
In TC2000, open the condition editor and create a new condition. Choose Write Formula, enter the PCF, and save it with a name you will recognize, such as “Dollar Volume Above $2M.” You can then add the saved condition to an EasyScan or watchlist. The menu labels may vary as TC2000 updates its interface.
TC2000’s help documentation also shows how to create a condition with the Condition Editor and save it in the condition library. For a full scan example, see my guide to scanning for swing trading stocks in TC2000.
What dollar volume can and can’t tell you
Share volume tells you how many shares traded. Dollar volume adds price to that number, which makes comparisons between different share prices more useful.
For example:
- 100,000 shares at $1 is $100,000 in dollar volume.
- 100,000 shares at $100 is $10 million in dollar volume.
Both stocks traded the same number of shares, but the value traded was very different. I use dollar volume as one way to screen for activity and liquidity. It does not prove that institutions are buying, guarantee a narrow spread, or tell me how much size I can trade without affecting my fill.
Before placing a trade, I still check the spread, price action, and the amount I plan to trade. Dollar volume is a useful filter, but it is only one part of the picture.
A rough dollar-volume guideline
As a rough personal screen, I sometimes look for average dollar volume that is at least 30 to 50 times the account size. That is only a starting point, not a guarantee of smooth price action or good fills. A stock’s spread, order-book depth, volatility, and the size of your order also matter.
Frequently asked questions
What is the TC2000 dollar volume formula?
TC2000’s current-bar dollar volume formula is C * V, which multiplies the bar’s closing price by its volume. To filter for a minimum amount, add a comparison such as C * V > 2000000.
How do I calculate average dollar volume in TC2000?
Average the dollar-volume formula over the number of bars you want. For example, AVG(C * V, 5) calculates the five-bar average. On a daily chart, that is the five-day average.
Should I use 1-day or 5-day dollar volume?
A one-day condition checks the current bar and can be affected by an unusually active or quiet session. A five-day average smooths that variation. I choose the version that fits what I want the scan to find, and still review the stock’s current spread and trading activity.
Can I use this formula to find stocks above $100 million in dollar volume?
Yes. For the current bar, use C * V > 100000000. For a five-bar average above $100 million, use AVG(C * V, 5) > 100000000. On a daily chart, the second formula checks the average across five daily bars.
Final thoughts
The TC2000 dollar volume PCF is simple: multiply price by volume. Use C * V for the current bar, or AVG(C * V, 5) to average the last five bars. Change the threshold to suit your scan, and treat dollar volume as one screening measure rather than a guarantee of liquidity or a trade signal.
For related TC2000 formulas, see my guide to ADR and ATR PCF formulas and my example of a TC2000 swing trading scan.
