Home  Trading Strategies    Options    Forex        Learning Tools Books
     
   
 

Scanning for Stocks
using Stockcharts.com

 
     
  On this page I give you four scans that you can use in Stockcharts.com. You do need to sign up for their Extra service to use these scans.
 
 
     
 
 
     
 


     
 
 
     
 

 
     
 


Stockcharts.com provides a very flexible scanning service in their most popular package, which is currently $24.95 per month. This is a bit expensive, but it is good - you can store your pre-defined scans (see below), or you can adapt one of theirs. Their free service offers an excellent charting facility, and some pre-set scans, but none of which are particularly useful for swing traders. If you can learn how to write and enter basic stocks scans, you will very quickly be able to find setups for trading, and use these to sell or buy options.

 

First Steps

When you have signed up for the Stockcharts service, log into the member's area. Scroll down to the middle of the screen, and on the right hand, you will see a button with "Create New Scan". Click on this.
On the scan page, near the bottom, is a button with "Advanced User Interface". Click.

This will lead you to an input box. Copy and paste one of scans that I have listed (below), and click on the button "Add/Modify the current scan". This will allow you to save the scan under a list of your favourite scans. Use a meaningful name, so that you know which scan to use.

Save all four of the scans below, and then return to the Scan interface. You can choose any one of the scans, and click on it. Stockcharts will fetch a whole list of stocks for you to look at a bit deeper.

Go through your list of stocks, and pull up the charts. Look for the candlestick patterns that will tell you which ones to trade, and give it a go!

Momentum or Trend Scans - for finding stocks which you can use to sell options.
I am listing two trend or momentum scans here for you to use, but they are very general, and will pull up lots of stocks. You can then filter through them to find useful trade setups for selling options (naked puts or credit spreads).

Scan for Positive trend
Enter the following script into your scan window. This script means that you are looking for the following types of stocks:
- Stocks priced $25 and above, with an average trading volume more than 150,000
- Stocks trading above the 200sma
- Stocks in which both the daily and weekly 10sma is above the 30ema
- Trends with an ADX greater than 20

type=stock] and [country=us] and[daily ema(60,daily volume)>150000] and
[sma(10, close) > ema(30, close)]and
[daily close > daily ema(30,daily close)]and
[daily close > daily sma(200,daily close)]and
[weekly sma(10,weekly close) > weekly ema(30,weekly close)]and
[ADX Line(10) > 20.0]and
[close >= 25]

Scan for Negative trend
Enter the following script into your scan window. This script means that you are looking for the following types of stocks:
- Stocks priced $25 and above, with an average trading volume more than 150,000
- Stocks in which both the daily and weekly 10sma is below the 30ema
- Trends with an ADX greater than 20

[type = stock] and [country = us] and[daily ema(60,daily volume) > 150000] and
[sma(10, close) < ema(30, close)]and
[daily close < daily ema(30,daily close)]and
[weekly sma(10,weekly close) < weekly ema(30,weekly close)]and
[ADX Line(10) > 20.0]and
[close >= 25]

NOTE: You can filter these scans a bit finer by entering a higher stock price (for selling credit spreads, I usually go for stocks with prices above $100, because they give the best price options) and for a higher ADX. If your ADX is greater than 25 or even 30, you will end up with really strong trends!

NOTE: Even if you do come up with strong trends, make sure that you are not bucking the general market trend, which you find by looking at the S&P or Dow. If you do go against the trend, MAKE SURE that you have a very good reason for believing that your stock is contrarian!

Scans for Pivot Points or for the TAZ - for finding stocks which you can use to buy call and put options.

In a Positive Trend - use these scans when planning to buy CALL OPTIONS
Enter the following scan, which shows stocks that are in a positive trend, and have oscillated down into the gap between the 10sma and 30ema (the TAZ). Confirm your setup using candlestick patterns:

[type = stock] and [country = us] and[daily ema(60,daily volume) > 150000] and
[daily high < yesterday's daily high] and
[yesterday's daily high < 2 days ago daily high] and
[sma(10, close) > ema(30, close)]and
[daily close > daily ema(30,daily close)]and
[daily close < daily sma(10,daily close)]and
[daily close > daily sma(200,daily close)]and
[weekly sma(10,weekly close) > weekly ema(30,weekly close)]and
[ADX Line(10) > 20.0]and
[close >= 5]

In a Negative Trend - use these scans when planning to buy PUT OPTIONS
Enter the following scan, which shows stocks that are in a negative trend, and have oscillated UP into the gap between the 10sma and 30ema (the TAZ). Confirm your setup using candlestick patterns:

[type = stock] and [country = us] and[daily ema(60,daily volume) > 150000] and
[daily low > yesterday's daily low] and
[yesterday's daily low > 2 days ago daily low] and
[SMA(10, close) < EMA(30, close)]and
[daily close > daily SMA(10,daily close)]and
[daily close < daily EMA(30,daily close)]and
[weekly sma(10,weekly close) < weekly ema(30,weekly close)]and
[ADX Line(10) > 20.0]and
[close >= 10]

 

There you have it! Four sets of scans that you can use in Stockcharts.com. These will give you lots of stocks to play with.

 

 

Return from Scanning with Stockcharts to the Home Page