Double

daniel_fromcebu

Scanning for Stocks that double from 52 week low and came within 15% or 20% from 52 week high

lmkwin

OK, what do you have so far?

Are you using weekly close greater than weekly min 52 weekly low times 2, to get the double, and weekly close greater than weekly max 52 weekly high times 0.8, to get the 20% or less from high?

Or using price channels? weekly close greater than weekly lower price chan 52 time 2 and weekly close greater than weekly upper price chan 52 times 0.8?

daniel_fromcebu

I am using the daily time frame. So its 252 days

daniel_fromcebu

Min(252,Close)*2 and Max(252,Close) * .8
Or....should work

daniel_fromcebu

This is one of Darvas strategy. He also buy on high volume. I dont know what Volume he uses.
Anybody knows? Please comment

lmkwin

Yes, using the 252 instead of weekly 52 should accomplish a similar result.

Only thing that I can find on Darvas volume is that he liked to see 'increased' volume. Was this on the breakout to the 52 week high? Or was it on the box breakout? I don't see that 'increased' volume defined on any of the information I've read.

For what it's worth, I don't see volume showing on any of the Darvas box system examples I've seen. On ThinkOrSwim they don't use it in their standard Darvas Box drawings and I haven't seen it included in the customized ThinkScript Darvas Box indicators/ filters either.

markd

For volume I think you would use a multiple of average daily volume. He didn't have a rigid formula. But say sma(20, volume) * 2 , maybe 3 or 4. You would have to experiment. You might look for MA 200 rising, price making new 20 day high and max(5, volume) > max(5, sma(20, volume) * 3, or something like that - in other words, prices are generally rising, making a new monthly high and recent heavy volume.

Here's one from my archive. I haven't used it recently, so research it first.

// 20 00 80 01 Darvas HV in up trend

// find stocks with MA 63 above rising MA 251 with 3x monthly average daily volume

[
[exchange is NYSE]
or
[exchange is NASD]
]

and [group is not ETF]
and [name not contains "Fund"]
and [name not contains "Trust"]
and [symbol not contains "/"]

and [market cap > 100]

and [sma(251,close) > 21 days ago sma(251,close)]

and [sma(63,close) > sma(251, close)]

and [volume > sma(21,volume) * 3]

and [close > 1 day ago close]

and [close > 1 day ago max(21, Upper Price Chan(63))]

daniel_fromcebu

Thanks MARKD

lmkwin

Price Channels or properly configured Chandelier Exits are a great way to visualize the potential Darvas Box being formed. Flat spots on the Upper line will show where there is pullback from the high



The chart has the 10 day and 253 day channels to show where the 52 week high is.

An interesting thing that I just noticed. If you put the Price Indicator and add an Overlay of Price Channel, it defaults to the line chart price channel, meaning Close Price. If you change the style of the Price to something that uses Highs and Lows The price channel will use those. It's an interesting look.

Notice on the Chart for the Price Indicator, which was the bottom panel of the chart above. The Price Channel 10 registers the new High of the Candlestick chart in early February, the 253 Price Channel doesn't move higher at that point as the Close prices are what that Overlay is using. It doesn't appear that you can configure the Price type the Scan engine uses for the Price Channel construction.

Might be something interesting or useful to consider in chart visualizations though.

markd

Darvas traded in the leading stocks of the day - new high growth stocks.

So it might be worthwhile to add a high SCTR number - maybe > 80.

The high volume tended to be around earnings releases.

daniel_fromcebu

Thank you guys.