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Dave Landry's Long Trading Strategy

This scan is based on Dave Landry's simple pullback from a new two-month high trading strategy.
1. A stock makes a new two-month high.
2. Next, the stock pulls back two to seven days with consecutive lower highs.
3. When the stock finally makes a higher high, which would be the "pivot" price bar, you have two choices. You can go long on the "pivot" price bar if it is a strong price bar (closing near the high of the day), providing the overall market is in a strong uptrend, or you can wait until the next day and put in a buy order ten cents above the high of the "pivot" price bar.
4. Once the order is filled you put a protective stop .35 cents under the low of the "pivot" price bar. I never risk more than -4% on any trade.

That is it, but I have taken it to a higher level of what I call a "safer trade."

Here is the criteria:
1. The overall market must be in an uptrend.
2. The Sector the stock is in has to be in an uptrend.
3. The industry the stock is in has to be in an uptrend.
4. The stock's ADX has to be above 25.
5. The MACD(12,26,9) Histogram has to be moving higher.
6. The stock's price has to be above zero on the MACD(1,65,1) or above the 65-Day EMA.

I Use the Elder Impulse charts. The chart I use has the ADX, MACD(12,26,9) Histogram and MACD(1,65,1) on it.

I use Elder Impulse charts for stocks, Industries, Sectors and Indexes. The ADX tells me the strength of the 'trend' (most be above 25), the MACD(12,26,9) Histogram measures the 'momentum', the MACD(1,65,1) tells me the 'long-term' trend (the long-term trend is up when the price is above zero), and the 13-Day EMA identifies the 'short-term' trend.

Here is the chart I use:
http://schrts.co/cmPZQIRp

Before I use the scan I already know which Sectors and Industries I am looking for the stocks the scan brings up. I do that by using this chart for my "Industry Summary" chart and my "Market Summary" chart:
http://schrts.co/vPtVfUsU

Below is the scan.

[type=stock]
and [country is US]
and [Low > 25.00]
and [Volume > 200,000]
and [SCTR >70]

and [ [[3 days ago high = 3 days ago max(251,high)]
and [Streak Down(high) = 2]]
or
[[4 days ago high = 4 days ago max(251,high)]
and [Streak Down(high) = 3]]
or
[[5 days ago high = 5 days ago max(251,high)]
and [Streak Down(high) = 4]]
or
[[6 days ago high = 6 days ago max(251,high)]
and [Streak Down(high) = 5]]
or
[[7 days ago high = 7 days ago max(251,high)]
and [Streak Down(high) = 6]]
or
[[8 days ago high = 8 days ago max(251,high)]
and [Streak Down(high) = 7]] ]

Comments

  • Is your group for the scan the Industry group(s) with the highest 2 month performance showing on the Industry summary?
  • I'm sorry, but I don't understand your question.
  • You mentioned that you identify your sectors or industries first, using the Industry and Market Summary. My question was if you add these industries to your scan. As your scan code reads, it currently looks at all industries and sectors and markets, without concern to them being leading or lagging.

    Something you may find of use is adding a Rank by statement at the end of the scan. Something like

    RANK BY [PctRelative(20,$spx)]

    You can change the number, right now it shows 20 days in the expression, to be longer or shorter. You can also change the $spx to be whatever index or symbol your would like to use as the RS comparison symbol. You can even use $Sector or $Industry in that position.

    Using the Rank By function is a fun way to introduce another element into the output file of the scan.

  • I have all the industries and indexes in 4 different lists because you can only get RRG results on fifty at a time. I view the lists in RRG and then I mouse-over the industries in the LEADING Group to see the charts. That's how I find the LEADING industries I am interested in.

    I also use the Industry web page where I quickly look through the industry charts looking for the ones that are over ADX 25 and are not overextended or the ones that have pulled back and might be ready to have another leg up.

    I also use the daily RRG and bring up the industry group with their stocks that I'm interested in and do a mouse-over the stocks in the LEADING group looking for the ones that aren't overextended and might be prospects.

    I like looking at a lot of charts.

    The scan is just another way to find some extra stocks to have as long prospects providing they are in the industries I am presently interested in and they look like they are set up to go higher.

    I started a Public Chart list a couple of weeks ago. There I have the stocks I own and the ones that are prospects.

    Public Chart List
  • Thanks for sharing your scan.

    As @lmkwin points out, "rank by" is a very useful scan option. It may save you a lot of chart time.

    For instance, assuming you have a list for the 104 $DJUS industries, you could do

    [favorites list is ??] // your $DJUS industry list
    rank by ADX(?)

    In the result list, the ADX value will display. Note the chart where ADX closes below 25. Put the results in a scratch list, saving the order. Review the charts until you hit ADX < 25. (Or, you can download the results to Excel, delete rows for ADX values under 25 and re-upload the remaining symbols to an empty list using the "many" option on the lists Edit view.)

    You can also get top performers with either "rank by SCTR.industry" or "rank by ROC(??)".

    SCTR merges long, mid and short term performance, so it can obscure newly emerging stocks/industry symbols.

    For ROC(??), longer values also obscure recent action, but 3 months seems to be a reasonable compromise (ROC(63)).
  • This is part of my trading strategy:

    First, I identify the Industries that have charts that are over ADX 25 and in an uptrend.

    Next, I create a Relative Rotation Chart (RRG) which I update regularly. I bookmark this chart. Then whenever I update the chart, maybe removing or adding Industry symbols, I then just bookmark the new chart again.

    This is a daily RRG Chart for swing traders.

    Included on the chart are the following:
    1. S&P 500 Large Cap ($SPX)
    2, S&P 600 Small Cap ($SML)
    3. Nasdaq Composite ($COMPQ)
    4. The eleven S&P 500 Sector ETFs
    5. The leading Industries that have an ADX over 25 and in an uptrend.

    The results are rated LEADING, IMPROVING, WEAKENING and LAGGING.

    The LEADING INDUSTRIES is where I search for stocks to buy when the overall market is in an uptrend and the Industries are in a LEADING SECTOR.

    If you clear the symbols at the top of the chart results page and use the "Groups" drop-down, you can select an individual Sector and get the stocks within it. The Industry is listed after the stock in the results. Then you focus on the stocks that are rated LEADING within the LEADING Industry you are targeting. Make sure you use the"Daily"
    option for the time period.

    Here is the URL for the RRG Chart: https://tinyurl.com/vzt7spc
    (Refresh the web page if the chart is blank.)

    If you are not getting the correct chart then enter the following symbols and set the time period to "Daily."

    $DJUSID,$DJUSSW,$DJUSAG,XLRE,XLC,XLB,XLE,$DJUSCR,XLF,XLI,$DJUSAI,XLK,XLP,$SML,XLU,XLV,$DJUSFE,XLY,$SPX,$DJUSRR,$DJUSSB,$DJUSDS,$DJUSHP,$DJUSBK,$DJUSHR,$DJUSSC,$COMPQ,$DJUSBT,$DJUSSF
  • P.S. - to see the complete page for the URL, you need to be logged in to Stockcharts.
  • I realize that. That's why I listed the symbols.

    But once you bookmark the page it stays the same (providing you are logged on to StockCharts.com), and then you can edit it and then just bookmark it again as a new page.

    One of the best features of StockCharts.com is the ability to see your stock lists as RRG charts. I set mine to "Daily" because I only swing trade. My average hold time is often under 7 days.

  • Simon Sez II - Wait-one day.

    re: https://www.barchart.com/stocks/quotes/FC/interactive-chart

    Gentlemen,

    Pictures are worth a thousand words. The above chart shows what I am trying to do where the arrows are pointing to.

    Manually, looking for a Wait-one day bar is a pain and consumes a lot of time hitting the Flip chart per a watchlist.

    I am trying to write a scan that will post a bar that is one bar higher or two than the last 52 week low (bottom right) as noted in the above chart.

    As well as a scan that will post a bar that is one bar lower or two than the last 52 week high (top left) as noted in the above chart.

    I tried writing a scan that I think comes close. It picks up a few and the others are way off.

    //New 52-Week Lows plus 1 Bar

    [type=stock]and[country = US]
    //and [SCTR > 90]
    and [[today's low < yesterday's min(260,low) * 1.02] and [today's low > yesterday's min(260,low) * 1.01]]
    and [today's close > yesterday's min (5,low)]
    and [close > 10]

    Think or Swim (TOS) has a study labeled TTM_ScalperAlert, however it posts the white arrow 3 to 4 days late.

    Thanks in advance,

    Quill -
  • You could try low < min 260 low + ATR(?), instead of using 1 and 2 per cent. The per cent range may not be friendly to some stocks, depending on how they move, but the ATR should adapt with the stock. Also, although it probably doesn't make much difference, I think you could use just min 260 low instead of yesterday's.
  • Mark,
    not working, I am not a programmer by any means and completely confused.

    Need two scans. one for the 52-week Highs and one for the 52-week lows.

    got this far with no results being posted.

    //New 52-Week Lows plus 1 Barchart

    [type=stock]and[country = US]
    //and [SCTR > 90]
    and [[today's low < min(260,low +atr (14)) ] and [today's low > min(260,low +atr (14))]]
    and [today's close > min (260,low+atr (14))]
    and [close > 10]

    Quill -
  • I think you can do it this way:

    and [low > min(260,low)] // today's low is not the min 260 low
    and [ low < min(260,low) + ATR(14)] // today's low is within an ATR of the min 260 low

    For the high, same thing, but use high instead of low, max instead of min, and minus instead of plus.

    This will catch lows near the 260 low - BUT, it might be following a recent min 260 low, or, it could be returning to an older min 260 low.

    If you want to test for recent min lows, the current min low should be lower than some number of days ago. For instance:

    and [min(260,low) < 21 days ago min(260, low)] // change the 21 to adjust the test period

    If you want to catch an approach to old lows, the current min low should be EQUAL to some older min, maybe three months -

    and [min(260, low) < 63 days ago min(260, low)]

    Note that no scan will pick up every chart that you might select by eye. Also, most scans will pick up some things that aren't what you want. As long as it gets a reasonable proportion of what you want, it's a worthwhile scan. You can adjust your parameters and test the scan against different past dates to find what seems to work best for you. Also, keep in mind that as markets change from trending up to ranging to trending down, you will get more or fewer results.
  • lmkwinlmkwin ✭✭
    FC wouldn't appear on this scan as it isn't at a 260 day low or near it.
  • Markd, Imkwin,

    Thank you very very much for your assistance. The Wait-one Day scan does the job for we Swing Traders.

    I now have to find the ideal ATR and the ideal day amount to use going forward. Unless you happen to know the ideal ATR and day numbers.

    It does exactly what we are looking for. Below you will notice BEN in living colour for best results. For the first time viewing the charts, it will default to 6 months in black and white.

    I trade ARC to ARC or Low to High using the default 2 month or 1-month chart. On 1/6/2020, the Green ARC appeared and the scan found the Wait-one day bar which tells me to buy the stock. Just have to worry about possible head fakes.

    Now, getting back to the Green ARC, almost 99% of the time when the Green ARC is at the low all by its self, it is an immediate buy. Same for the High Red ARC. If the RED ARC appears all by its self, Sell the stock immediately for the stock can be sold or shorted or simply Wait-one Day. For fun at the bottom of the chart, is the slider bar and at the extreme left is a little wedgie. Click on it several times to find the past GREEN ARC's and the rule says to buy immediately or Wait-one Day and buy the stock 99% of the time for nice profits. Never failed me yet.

    https://www.barchart.com/stocks/quotes/BEN/interactive-chart found 44 others today.

    Here are the rules for the ARC's

    Buy at Bottom

    RED or GREEN ARC's
    Green ARC = Buy immediately
    Red ARC = Wait-one day or until the next bar rises above the previous low signal.

    Opposite for the Sell at TOP

    Mark, you just don't know how much you are appreciated for we Swing Traders.

    We look for stock/etf's right out of the starting gate instead of buying stocks that are already around the first turn in horse racing analogy.

    Shall see ya around the campus from time to time.

    Best Regards,

    Quill - a poor church mouse scratching for a living as a Swing Trader.


  • markdmarkd mod
    edited January 7
    Thanks for kind words.

    I don't think I can see what you are describing on the linked chart - maybe because not a subscriber?

    In any case, if what you are mainly looking for is a cross below the 260 day low on the previous day, and a low above that min low today, you could just use the crossover over operator ( actually, cross ABOVE operator - the left hand term always crosses above the right hand term, so you would think of it as the min low crossing above today's low, even though common sense tells you today's low is doing the crossing ).

    and [ 2 days ago min(260, low) x 1 day ago close ]
    and [ low > 2 days ago min(260,low)]

    or something similar.

    By the way - on a daily chart, 52 weeks is actually 251 (sometimes 252 or 253) day, accounting for market holidays. I don't know if that makes a difference to the plan.
  • Markd,

    No need to be a subscriber. There is tons of information at my fingertips.

    Barchart is FREE to use to view the charts even though you have to register so you can get EOD emails that were checked off. I don't like their Screener tool. To complicated.

    Peruse at your leisure. Enter the ticker symbol and it will pop up as a default of 6 m in black and white. Change it to Daily 2 M. Near the top look for the word Go. Then to the right click on the red and green OHLC bars, then pick one. I use the second one down from the top.

    I believe the Bar charts are the best charts to use because of its simplicity and clean minus all the noise.

    will change the 260 to 251. My main concern is the ideal ATR to use. 14 appears to be the majjic number.

    https://www.barchart.com/stocks/quotes/FC/interactive-chart

    I call the whole process "Simon Sez II Wait-one day ARC to ARC" with two (2) simple rules. Basically it is almost bulletproof. Swing Traders buy and sell ARC to ARC.

    When an ARC aka Smiley Face appears, do the following:

    1 ) For the TOP ARC, we wait and wait until the next day when the price drops below the high signal to SELL the stock. If the ARC popping up is Red, we SELL the stock immediately. No need to wait.

    2 ) For the BOTTOM ARC, we wait and wait until the next day when the price bar is rising upwards to BUY the stock. If the ARC popping up is Green, we BUY the stock immediately. Instant cash cow. No need to wait.

    Now for 99% accuracy, I use the red or green ARC's for buying at the bottom and selling /shorting at the top. That is why the scanning tool saves many hours looking and flipping charts manually to buy or sell right out of the gate. Just be advised head fakes can occur.

    ** "Wait-one bar" rule signal is when the ARC appears, we wait for the next bar to the right to either rise or go down indicating a BUY or a SELL signal.

    Again Mark, thank you very much for all your help.

    Best regards,
    Quill -

  • So does hitting the 260 min trigger the ARC? Or is it a close below then a close above? Or is it more complicated than that?

    Should be easy to recreate on SC.

    Also, if the strategy is close below/close above the channel, you could try the same thing with 21 day channels - many more trades if that is what you are looking for.
  • Mark,

    "hitting the 260 min trigger the ARC"- Yes.

    "Should be easy to recreate on SC." Yes, it can, but too much whip-sawing, if you know how to look at trade. I lost a lot of money and died trying.

    The below chart I use to trade using the bubble prices as buy and or sell. I called it Simon Sez I.

    one 1/6 a bubble appeared as a sell signal, however, you can't execute the trade until the following day. For newbies, you have to talk it through as what Simon says to do.

    Yesterday 1/7 the price bubble appeared at the bottom. So today, you buy the stock.

    It appears we will be always a day late on every transaction.

    For some stocks, the whip-sawing will kill your bank account.

    http://schrts.co/UhCsdnpV


    Now, for the Barchart, notice how clean it is and pick a month to trade with. I defaulted to 2 months and sometimes it for 1 month. and then if there is something that looks funny, I go down to the lower right-hand corner and move the left arm of the Goal Post;o) to the ever so slightly to the right to see if the ARC will appear. Poof, it appears at times.

    https://www.barchart.com/stocks/quotes/VLGEA/interactive-chart

    One last thought, if the price bars are above the Green 20 ema line, the stock is healthy and tends to rise.

    I go fishing looking for the 20 over 60-day ema's daily. If I see that the closing bar on the OHLC line is above the 20 meaning the stock will be healthy for a while. Remember that the closing bar has to be above the green line (20 ema).

    // Bullish 20/60 crossover

    [type = stock] and [country = US]
    //and [SCTR > 90]
    and [Daily EMA(20,Daily Volume) > 500000]
    and [today's ema(20,close) > today's ema(60,close) ]
    and [yesterday's ema(20,close) <= yesterday's ema(60,close)]
    and [close > 10]

    Found 13 stocks this morning. On the Bar chart look at ATUS and AKAM. The top ARC is posted this morning as an indicator of things to come. AKAM will keep rising awaiting the Sell signal. Put your mouse on 12/13/19 as a buy @ 83.24 and currently, it is at 91.28. But I don't own this stock. bummer. :o( Must of missed the bus Gus on AKAM.

    I buy and sell about 5 stocks a day with huge profits thanks to the Simon Sez wait-one day ARC to ARC strategy.

    Looking now to test Day-Trading ARC to ARC.

    I hope the above mess can be some assistance in your journey.

    Best regards,

    Quill -



  • I still don't get what is the complete sequence of events that causes the ARC to appear, and when does it appear? At the completion of the ARC bar, or one or more bars AFTER the ARC bar?

    Or can I just google it?
  • Mark,

    I think this time the below will get you to the exact spot.

    Googling will not help much. https://tinyurl.com/ydj66qx7 kruz on down to where it asks a question about the 52-week lows in the "People also ask" section.

    when viewing a chart, in the upper right-hand corner is an American Flag. Just below the Flag you're looking for the HELP tab.

    Click on that and kruz on down to find "Default Chart Settings" explaining a few lines of the "arc". then peruse down further for more information on how to set up a chart to your likings.

    The ARCs are the 52-week Highs and 52-week Lows. This will answer your question. I would recommend that you change the black and white to red and green as explained yesterday. Now you see the chart, the ARC will appear. Go over the 2 simple rules Simon Says to do for the lows or the highs. oooooor use the RED GREEN ARC appearance two (2) simple rules for the low or the high. Don't rush, please take your time and walk thru the process slowly at first. As you get the handle of it, you will make informed decisions in 300 nano-seconds or a blink of an eye. In the Template tab, you can create your bells and whistles so you do it once instead of going through the motion of filling out all the information you need. I believe you can only have 5 templates as a freebee person.

    How to find the lists:

    At the chart find and click on Dashboard near the top.

    Next in the upper right-hand corner click on the markets tab.

    next, click on the top rectangular box and look for 52-week lows or Highs for the day and sometimes it updates by its self. Then you will see the ARCS for every chart. When you see the highs, your gonna say man when looking to the left down stream when you woulda coulda shoulda bought the stock at.

    today there are more highs than lows.

    you can also click on the vertical tickers to view the chart as well as horizontal string along the top for fast access to the chart.

    to fill in the chart for whatever you want to look at, click on the Study tab just below the ticker prices of the day. I use Moving average Exponentials of 20 (green) and 60(purple) and Stochastic RSI for confirmation for support and resistance lines at the bottom of the chart.

    there is so much stuff for free to use man and hope this could help a little bit more in your journey.

    Have fun and see ya around the campus.

    Best regards,

    Quill -











  • markdmarkd mod
    edited January 8
    @Quill tx for the the info. Have my set ups in place, but as time permits, I'll look this over. Not sure I want to invest the time to learn another site. Obviously, I love SC and have put a lot of time into learning it (and sharing what I've learned, as time permits).

    I think I don't get why you can't do the same things on SC with better charting and scanning, but to each... It obviously works for you. Happy to hear you are doing well. Thanks again!
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