Double Trouble looks for stocks that have almost doubled from their 52 week low. The basic concept behind the scan is anchored momentum.
The idea behind the scan is from two books Superperformance Stocks by Richard Love and How I made 2 million Trading Stocks by Nicolos Davas.
Once a stock satisfied the anchored momentum condition of doubling from 52 week low , if it forms a base of few months near high it has potential to breakout and make a big move. Failure to do so will mean a short candidate once base is broken.
Double Trouble is more suitable for longer term hold swing trades. It allows you to anticipate breakouts. This can be done over weekend and then you can put resting buy orders above the consolidation.
Double Trouble is also very good for finding shorts. Stocks that make extreme moves tend to breakdown after such moves and offer very good risk reward short trades. Fors shorting stocks that triple from 52 week low are best candidates. To short them you have to wait for them to breakdown and then short a countertrend bounce.
Double Trouble (DT) Scan
c/minl252>=1.80
Double Trouble Sort column
c/minl252
Double Trouble Chart Template
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