Assume the same applies to trading and be sure to watch how the candidates trade first through a few 5-minute or 15-minute candles first before stepping into a trade. Poker players know that if they can’t spot “the mark” (victim) at the playing table, then they are probably it. Keep in mind that if you haven’t been already monitoring the stock, then you are the “newbie” set of eyeballs. Be careful not to jump headfirst into these stocks as they can pullbacks almost immediately after they show up on the scanner. Stocks making new intra-day highs and lows tend to have more robust price action. Basic Scanners for Day Trading Intra-day High/Low Scan Optimizing the scanner results and the steps taken on your part is the key to success. The quicker you can put the plan together, the more efficient your trading will be, not to mention the ability to jump on the opportunity in a timely manner. This is an example of how you create a trading plan and execute with proper allocation, targets and stop-losses. Trade planned, executed and closed with $200 profit. You decide to scalp out the position just ahead of that resistance into the buyers at $27.82, for a + $0.20 price on 1,000 shares. The 60-minute 5-period moving average resistance on XYZ updates to $27.85. The SPY is hitting new intra-day highs and the peers are also climbing. As the 5-minute stochastic climbs, the 15-minute stochastic also crosses up through the 30-band stochastic. You cancel the $27.40 limit buy order for 400 shares and proceed to buy 400 shares at $27.65, which brings your long position to 1,000 shares at $27.62 average. You notice the 5-minute stochastic turning back up through the 20-band and determine the oversold bounce has begun. XYZ bottoms at $27.50 and proceeds to spike to $27.65. The SPY takes a dip and your limit orders at $27.67 and $27.53 get filled bringing your average price on 600 shares to $27.60. You place three limit orders to buy: 300 shares at $27.67, 300 shares at $27.53 and 400 shares at $27.43 with a stop-loss at $27.15 for a reversion target at $27.90-$28.10 range. The shorter time frames also show very oversold stochastic readings under the 20-band on the 5-minute and 1-minute charts. The daily and 60-minute lower Bollinger Bands overlap at $27.40.Īt this point, you decide to take a total of 1,000 shares long for a bounce, but will be patient to get the best prices.
You have determined that XYZ is a viable candidate for an oversold bounce. Your analysis reveals that XYZ is trading weaker on an analyst downgrade, but the sector/peers are positive and up trending on the day and the S&P 500 ETF (NYSEARCA) is trading up $1.20 and up trending. You will have to quickly analyze XYZ through multiple time frames to determine support/resistance levels, check for news, compare to benchmark index/futures ( IE: S&P 500) to determine relative strength or weakness. Analyze The Result(s)įrom the results, you spot a familiar name XYZ, which is trading at 27.75, down – $2.20 at the lows of the day. You have also set the parameters to stocks with daily average trading volume over two million shares priced between $20-$50 trading on the NYSE or Nasdaq exchange. You set the scan to find stocks that have fallen under the 20-band on the 15-minute stochastic. Let’s say you are looking to play a bounce on oversold stocks.
#Market scanner pro full
Here’s an example of the full anatomy of scanner-based trade. By knowing what type of results you want, it wll cut down on the number of steps needed on your part to get to the trade. This means you have to define the steps and then work to minimize the steps to get from point A to point B in the speediest manner. The quicker you can analyze and prep the results, the greater the opportunity to profit. Scanners are meant to save time, effort and improve efficiency. This will help to set-up your own criteria needed to quickly analyze the results. You should also know what you are looking for.
#Market scanner pro how to
How To Use Scannersįirst and foremost, you must be aware of what the scans are filtering for. Don’t fall into the trap of jumping head first into any and every stock that pops up on the scan. Remember, scanners are just filters that provide candidates that must still be validated through proper analysis. It’s easy to spread yourself too thin and jump into any stock that pops up on the scanner. However, these tools can be detrimental if not used properly. Stock scanners are great tools to help spot opportunities throughout the day.
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