Tweezer Bottom - The Filter

I’ve talked about the Tweezer Bottom before and what I wanted to do today was to show you a filter based on the tweezer bottom and let you see some of the results from that filter over the past 3 months or so.

Here is the filter in all of its four lines of glory:

show stocks where close is between 15 and 35
and average volume(90) > 500000
and low equals low 1 day ago
and close < Donchian Center Band(20,4)

And here is what it looks like -



The filter back tests are impressive with a 75% win rate and a 100%+ ROI over 4 days but I think results that you can verify are as important so here are some you could look up yourself. The values shown are for the stock from the day it was discovered by the filter to Friday, 27 January 2007 i.e. yesterday.

OCT 20 (65 days ago)
Top 5 selections only of 11 (9 win - 2 lose)
SCHW 11.45%
TEVA 2.58
ADI 11.96
EXPE 26.74
WCI 32.90

Dec 26 (20 days ago)
Top 5 selections only of 12 (10 win - 2 lose)
NSM 2.84%
TOL 2.34
ACOR 8.18
LYO 14.86
SWFT 13.27


JAN 19 (5 days ago)
2 selections only
BMC .32%
CECO 8.03

And these are the most recent selections from the filter for you to put on your watch list for the coming week: NYB, CHT, MFC, TCB, and ORI.

Please, as always, do a thorough DD – I have not checked any of these regarding coming earnings reports or institutional holdings or growth or any other fundamental approach. This is pure TA at its best or worst.

Once again thanks to prophet.net for the charts and stockfetcher.com for the application that allows me to write my own filters.