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Breakouts scan

52-Week High Breakout with Volume Screener

This scan finds stocks that closed at a new 52-week high while trading at least twice their 20-day average volume. The price says breakout; the volume says big buyers are behind it.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: new 52 week high and volume above 2x average

  1. Close > 52-wk high
  2. Volume > 2× Avg vol(20)

Find US stocks where the closing price is above the 52-week high (before today); and today's volume is above 2 times the 20-day average volume.

Formula view
close > highest(high, 252, before_today)
AND volume > 2 * avg_volume(20)
Example chart: 52-week high on big volumeDaily candles of a made-up sample stock with 52-week high (before today); Lower panel: volume bars, and 2 × the 20-day average volume. The shaded day is the day the scan fired.
  • 52-week high (before today)
  • Lower panel: volume bars, and 2 × the 20-day average volume
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Volume is the number of shares that changed hands. When a stock breaks to a new high on quiet volume, a few small orders may be pushing the price. When it breaks out on double the usual volume, larger buyers such as funds are usually involved, and they often keep buying for days or weeks.

This is a stricter version of the plain 52-week high scan. It finds fewer stocks, but each one comes with stronger proof of demand.

How traders use it

  • Run it after the close to build a short watchlist of the day's strongest breakouts.
  • Look at the chart: a breakout from a long, tight base is usually more reliable than one after a straight run-up.
  • Many swing traders place a stop just below the low of the breakout day.

Watch out for

  • Volume spikes on news, such as earnings or a takeover, can fade fast. Check why the volume came in.
  • Twice the normal volume in a stock that hardly trades is still small money.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

Why does volume matter in a breakout?

Volume shows how many shares changed hands. A breakout on high volume means many traders agreed on the higher price, so it is less likely to be a false move.

What counts as high volume?

A common rule is 1.5 to 2 times the 20-day or 50-day average. This scan uses 2 times the 20-day average, and you can change the number in the demo.

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