Simpler Trading Scanner Tracks Stocks, Market

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Simpler Trading Team

Apr 28th 2022  .  9 min read

Simpler Trading Scanner Tracks Stocks, Market

2022-04-28

With thousands of assets trading on the stock market daily, traders need a way to find the best tickers at the best price to meet their trading goals.

Our team relies on the Simpler Trading Scanner. This is an essential trading tool that allows our traders to keep pace with the market.

Anything to help traders navigate this uncertain market is important.

Recent headlines don’t paint a rosy picture of the world or the markets. Analysts are giving serious consideration that the benchmark S&P 500 could enter another stock market correction. The index came close this week to entering its second market correction in 2022.

This makes the search for the best stocks to trade even more important.

(Check out the free video, above, for insight into trading this changing market.)

Simpler Trading Scanner tracks stocks as recession looms

Even as headlines say a recession is near the market will rally despite all the gloomy signals.

After a rough gap down to start this week, the major indexes rallied on Wednesday. The Dow closed at 33,916.39 points to rise 1.85% (gaining 614.46points on the day). The Nasdaq gained 382.59 points for a 3.06% spike while the S&P 500 jumped higher 2.47% to add 103.54 points.

Across the board the equities have seen volatile day-to-day and intraday swings in recent sessions. This makes it challenging for traders to identify the most promising stocks to trade in a market with so many trading opportunities.

As of October 2021, the New York Stock Exchange (NYSE) had a combined total of 2,434 listed domestic and international companies. The Nasdaq had a much higher 3,566.

The Nasdaq Index (for stocks on the Nasdaq Stock Market) is the second-largest stock exchange in the world for traders and investors looking to buy and sell shares of stock.

These are only two of the global exchanges traders can target. 

With this many stocks at play, manually looking for an attractive opportunity in the market is a near impossible task for traders to accomplish alone.

It makes sense for traders to focus on certain stocks, but this limits focus to a “manageable” list of names.

Without a scanner to broaden the search in real-time, traders too easily miss good setups on charts outside their viewpoint. A stock scanner fills the gaps traders too often miss. 

Stock screener or stock scanner?

The term “stock scanner” and “stock screener” are often used interchangeably. It’s easy to understand why, aside from sounding similar, they each take a large universe of stock symbols and reduce it to a much smaller list.

For the sake of simplicity, here we will refer to these search tools as scanners.

Features vary from scanner to scanner. Some features of a stock, such as the company sector P/E ratio (profits and earnings), the dividend average analyst opinion, or other measures may not be visible on a chart but can be associated with scanners.

Other measures, such as average volume and price, can be seen on a chart and can be included in a scanner.

Traders find it better to focus on the specific features needed for the best trading setups.

Simpler’s traders use three scanners in particular – thinkorswim®, TradeStation, and the Simpler Trading Scanner. The thinkorswim® or TradeStation scanners are both found on the respective online trading platforms that allow traders to trade and use charts.

Whether a trader uses thinkorswim®, TradeStation, or any other trading platform, all that is needed is an internet browser for the Simpler Trading Scanner to work. 

The team at Simpler Trading helps traders create scans for setups that our traders use regularly and for setups involving the Simpler Trading indicators.

What is a scanner and how does it help?

Scanners reduce a very large universe of tickers to a more easily reviewable watch list of stocks that have potential for providing tradable setups. 

This computer scanning software very quickly evaluates features on a stock chart to see if that stock meets specific criteria. This software whittles down many thousands of stocks to a small watch list that can more easily be reviewed by a trader. 

Each scanner is different and has a different set of features.

Some scanners can identify various price patterns – including candlestick patterns and other technical analysis patterns. Others can identify a variety of conditions with indicators built into the software. 

Some scanners look for conditions with custom trading indicators. Trading indicators are used to simplify the price data and present them in easily recognizable patterns. This makes it possible to find setups relative to Simpler Trading indicators such as Ready.Aim.Fire!® and the 10X Bars.

Indicators often include specific conditions for moving averages, relative strength, and stochastics. A stochastics indicator is mainly used to determine if a price is overbought or oversold. Relative strength is a measure of the price trend of a stock compared to its benchmark index.

Trending indicators, like directional movement and average directional index, allow traders to find market direction. They can be used alongside a price chart to help traders identify opportunities in the trading direction and strength of a trend. 

Can scanners deliver?

Scanners enable traders to save searches to find beneficial trading opportunities. Some of the Simpler Trading favorites are:

  • Focused Trades Scans: Scans for stocks in a clearly defined trend with the addition of a squeeze. Traders can focus on the strongest trends while using the squeeze to increase the odds of catching the next directional move.
  • 3-Day Time Frame Scans: Similar to Focused Trades Scans, these scans provide a longer-term look at the squeeze (3-Day Daily Bullish Continuation Pro and 3-Day Daily Bearish Continuation Pro).
  • Daily Scans: The daily scans update nightly and keep traders ahead of the curve for the next trading day. Additionally, this scanner includes the popular Daily Pop Candidates, which is a list of stocks that meet a specific set of criteria that implies they may be ready to explode higher. This is a favorite scan of Simpler Trading Founder John Carter.
  • Daily Bullish/Bearish Continuation Pro: The primary focus is identifying squeezes, which also includes identifying when a nested squeeze is present. These scans also have additional criteria that cover John’s full setup.
  • Multi-Time Frame Analysis (MTFA): The MTFA indicator identifies when momentum lines up in the same direction on multiple time frames. With this scan, traders can find stocks in potentially strong trending moves with a single snapshot.
  • Voodoo Lines®: It’s even possible to scan for Simpler’s popular Voodoo Lines® which use David Starr’s prosperity Fibonacci analysis and Elliott Wave formula to find significant areas of support and resistance.
  • 10x Scans: These quickly sort for stocks that have strong momentum. Simpler’s traders use this scan to identify opportunities to piggyback on institutional order flow. The goal is to know when to go with the strong market conviction and when it’s time to GTFO (Get The Funds Out).
  • R.A.F. Scans: R.A.F. Scans allow traders to scan for signals from one of Simpler’s most popular timing indicators, Ready.Aim.Fire! indicator (R.A.F.). The R.A.F. took over five years to develop. This allows traders to have access to the R.A.F. scans onscreen without having the tool installed on the charts.

The consensus of the team of traders at Simpler Trading is – yes! – scanners deliver and are essential to traders who want to get more winning trades. 

How Simpler Trading Scanner works

The Simpler Trading Scanner scours thousands of stocks, exchange-traded funds, and even indexes to select setups with a higher probability of success.

This unique tool scans the entire universe of stocks and applies the Simpler Trading fundamental criteria – including the “growth stock checklist” (developed by John Carter) to find the best stocks in the top 10 growth industries. The scanner  also searches a small group of stocks that have already met a strict fundamental filter targeted by Simpler’s traders.

Keep in mind that the markets cycle between periods of compression and expansion. When traders find these “moments in time” just before a particular stock is ready for a big move, they gain an edge as a trader.

This is why Simpler traders scan for stocks and create watchlists for stocks that are setting up in a trading pattern, like the TTM Squeeze.

Traders, whether a part of the Simpler Community or just those seeking an edge in trading can get a Simpler Trading Scanner subscription. This provides custom weekly scans, daily scans, and intraday scans – as well as scans for signals from some of the favorite Simpler Trading indicators.

Map your trading journey

Simpler traders liken a scanner to a personal roadmap. When a traveler begins a journey, choosing random streets and roads based on how “cool” they look can easily derail the trip. Likewise, “cool” stocks that aren’t backed by data can easily shrink your trading account.

Travelers who depend on  a map for a destination will know where to look for signs and possibly areas to avoid. This can lead to a much more enjoyable experience. Same with using a scanner…

Once traders know where they’re going (by scanning for good stocks), finding the route to reach the final destination becomes much easier – and faster. A scanner delivers the starting point to get to the trading destination – tickers with high potential for wins.

Scans don’t have to be perfect.. They just need to do their job of narrowing a large list of stocks down to a manageable list of candidates which traders can evaluate by looking at the charts to see which ones appear active and meet the setup criteria.

Map out your trading journey today using the Simpler Trading Scanner.