How To Make The BEST Swing Trading Scanner For Gap Up Stocks
So, in this video I'm gonna show you how, to make a scanner that bonds some of the best swing. Trades for, bullish, stocks. So. First. Off if you don't know who I am my name is James Mason I am one of the founders for transparent. Traders we, already grow in the Facebook community and, if. You're looking for a community with like-minded individuals, you. Know please check us out I also. Would have a, 40. Video free, course on my youtube channel in, the playlist section, so. If. You're looking to learn how to trade how I trade you know, by all means it's, yours, so. Let's get started here. First. Off I'm. Just gonna go and say just to get out of the way that. If. You just want to copy, this scanner and don't want, to watch the video you. Know, if. You look in the description I will. It'll. Be the first along, at. The top just, copy. It and, you'll. Come up here if you're using TD. Ameritrade thinkorswim. You'll come up to setup and you'll. Click on open, shared item, and. You'll just copy and paste that into there and then. Just. Load it up through the scanner and you'll have it so, hopefully, you would like to watch this video but if, not it. Will be the first one in the description so, this. Scanner I accidentally. Created it because I was trying to tweak my day. Trading scanner which. I always say don't tweak it but, I just wanted to try some things out, with. I thought I had and it. Actually was a failure fourth day trading stuff but. It. Actually turned out great, for swing. Trading, so. This. Was this is the breakdown of it right here and like I said I, mean. You can you can set it up just like this manually, if you want or you, can just upload it when I dropped the, link in the. Top line in the, description at the bottom so. If. You want to manually create this thing, you'll. Go here and you'll click stopped. Three. Times so. Apply filter force doctor three times and then. Study, three, times so. Right here the. First one you'll. Change it to close second. Volume, third. Percentage. Change. The. Fourth one which is study price. Direction, and. Then. The next one for. Price direction is, closed. And. Has. Increased, and. One. Consecutive, consecutive bar. And, I'll explain this in, a. Few minutes why, this is important. So. For the the, second, study one right here which is LAN. Five. Row. Five. Bollinger. Bands. Crossover. So. If, you click right there and. I. Mean. Let's. See where's it at. Here.
This Crossovers. There. We go you'll just click on that and. That's, what you. Will have right there and. Close. Above. Upper. And keep, the default in right, here so I'd be twenty and, then. Two right here and average. Type simple. For. The last study, filter, you. Can add the. MACD, crossover. You. Want it negative, to positive and, keep, the default standards, in and. This. This, should be you, know exponential. Yeah. So, I'm not I can't remember if it comes. Up simple or, not but you. Know change. It to this one right here and. Let's. Start up here we'll, talk about the price range um. You. Can put whatever price range you in you. In that, you prefer. Just. To pull up a lot of stuff you. Know for this one I'm just, putting in one dollar to, four, hundred for. Volume. A minimum, 200,000. And. Never put anything for, the max because you, want more volume for. A. Percentage change. 2%. And. A. Max you. Know 1 put nothing in. Price. Direction again close. Increase. 1. Bar and. We're. Gonna go over here you. Can have the option for this timeframe for. What you want to measure it in. Now. The rest of these will be day but. I, need. You to change, this one and you'll have to trust me because if you don't change it to the, 5 minute period. Your. Results will be skewed and. To. Be honest with you I'm not sure exactly, why, and, I've. Tried this on all. Different periods. But the, 5 minute one is the. One that, actually, works, and produces. These results, if. You keep it on the day, you'll. Get kind of the same set, up but. For. Some reason I can't get it loaded up I mean I'm not sure if it has anything to do with it obviously, being Sunday and, the market closed but. You, know it pulls up ticker FL. On the, daily and if you look at it on the daily chart it's, just a massive, red candle from where it gapped up and, that's. Not what we're really looking for now will scanner be 100 percent absolutely not, but, the closer we can get to 100% the. Easier it makes things in. Trading. So. For. The Bollinger Band crossover, and. Be above, upper. Keep. This stuff right here it should be standard and this. One you're gonna keep on day, so. Come down here click on day for. The mac dean negative, it's positive and, then the standard stuff which is going to be 12, 26. 9. And. Make. Sure it's not unsympathetic. On. Day. 4 the top right. And. Since. I've you know changes scanner now I got the five minutes in right here for the. Price direction, and, again. One, day don't, change this to two or, three this, is completely, different than one day trading scanner this, is for swing trading. This. Is actually, gonna. Find true gap gap. Up stocks, now. If. You look obviously. Up here and if. You go to public. You. Can find you, know this stuff for gap up but this is not the, scanner that you want because what this is looking for this gap up right here it's, a little fun and stuff that gaps up 10 cents 20 cents 50 cents and that's. That's. Not enough movement that we need and. You. Know it's gonna find you all kind of just different results and technically, if it's you know going up in the. Pre market opens, up the next day 10 cents or whatever more they, classify, that as a gap up I mean technically it is but, it's. Not what we're looking for so you know. Again five minutes day, day, right, here and we're gonna click scan. So. This, is what I have that will come up, and. You. Know for this period right here um this. Timeframe or right now that. I just scan. So. What, I'm gonna do next just to make this easier for me is. I'm. Gonna save this now, when I originally created, the course, my. Free course like I was talking about in the beginning if, you look up in my playlist section. TOS. Was, completely, different, then so. Now to. Save a, watchlist. As an. Active scanner you. Now have to go up here click right, there and. Click. Save. Scan. Yes. My. Box came, over to. Come. On now. This. Little box came over to my. Other. Screen. It's. Not gonna let me pull it over cuz I can't grab the top of it so. I'm just gonna type in I. Don't. Know I'm just gonna name. It. Video. Demo. And. Today's date which. Is March 3rd. So. Basically. What. I just did and you couldn't see it because it put it up over here on my other monitor and it wouldn't let me grab the top for, whatever. Reason to. Drag it over so. I, just saved that as. That watch list but be sure if you want to save a scanner as, watch. List you, need to click right there and. Save. Scanner. That's. How you do it and you'll just type in a name and save so, I'm gonna come over here I like.
That And. I'm. Gonna look for it so because, I created it it will be under personal over here. And. Here it is. Alright. All right soon let's go to charts. Ha let me go back to FL real quick. So. If you didn't change that one to five minutes and just kept all three a day this. Is what, when it came up right, here ticker, FL, and this, is us looking on the daily top frame because, if your swing trading that's technically how, you need to base it off of to. You. Know to see the, flow. In in. The trade, so. I mean obviously if you look at the 5-minute chart. You're. Gonna see a, completely. Different picture, so. Since we're swing trading it day to day, the. Daily chart is, the. Better option to. Determine if this is a trade you want to take and then. Before you take that trade you. Actually want to you, know I prefer since I traded on the bottom. In a chart. What. I would do is then. I was, look at the five minute time frame if. I determined that I was gonna you, know want to take this swing trade. Emphasis. It was there for me and then, I would start looking for. The. Best, entry. Point for when. I wanted to get in and. That. Would be basically if. This was down trending. I'm. Not, gonna jump in yet on the five-minute chart I want to see it level out or. Kind. Of start up trend again before I started to jump in. That. Would help me not, you. Know enter. Trade that. Far upside, down so, going back to the, when. Your one day chart you, know if you want to change this ends again, this is the stuff that you would get and this is not what you want so. We're. Good back down here to the, watch list that, we just created with that scanner and this. Is what. I got. With. The scanner this is the David Charlotte again so. You clearly see this massive gap up now, without gap ups work gap, ups at, some point always fill, the gap, and. That. You. Know that that's true for, even a gap down. So. Clearly. You clearly see this on a daily chart a gapped. Up a ton right here and. Then. It closed, out for today right, here so at, this point you, know it. Got to it's hot which, basically, the high was 49. 45. And. It. Actually ended up closing at 49. 13. So. With. The way. You. Know gap up or gap, downs work. Is. They. Always say we'll. Just talk in terms of a gap pop because that's what I'm showing you right here this is what this scanner is for. This. Will find true gap ups, they. Always say don't ever, short on. The. First day meaning. Ain't. Talking about shorten, in between the. Intraday price action, we are talking about don't.
Short This and, hold. It into the next day because. When something gaps up like this. It. May take a the, next day may, become red and. What. You have to look for is. You. Know if the next day opens up red which there, could be a good chance what, you're wanting to look for is to. See it go down and, to. See where it starts to reverse and, when. It starts to pull back that's. When I personally. Would, enter, that trade. Because. When, these things gap up there is a reason and usually, they, end up creating a newer high I'm. Not telling them that you're gonna get rich and just hit home runs that's. That's. Not stock trading. But. What I'm telling you is. When. You find something that's, true like this. They. Usually tend, to, create, that. New hot the same thing for if they gap down, if. You find the ticker that gaps down on a daily chart if. You try to go long in it, you're. Gonna feel pain, because. It's. Gonna go lower, before. It goes higher. So. With. That being said this. Scanner what this scanner looks for it looks, you. Know specifically. For, it, breaking, this upper Bollinger Band and, closing, above. It so. We. Want to see it close above this so, this is a strong close but, at the same time it's. Looking for a complete, reversal on the MACD and you see it right here all, these red bars and then BAM this. Solid, green bar. So. It's. A good chance for this ticker right here x-ray. You. Know, XR. A Y, that. It. Closed out at. 49. 49:13. There's a good chance that it's gonna close out higher how much higher I don't know but, what I'm saying is if. You're trading options, especially. Make. Sure you buy enough time I. Always. Say that I even buy enough time when, I, am day trading just, in case if, I get turned upside down and. I can make the decision on how, much pain I wanna endure and. I. Will, have the time to. Be able to endure it and, most. Atomic, and at least break even on it or make a small profit. So. You, know like I said this won't hit home runs I mean, good but I always. Bank on anything, not hitting a home run but. I'm looking to, make. Profit. Because. You. Know if you're trying to hunt down the big trades that, are just gonna be. Home runs for, you. You're. Gonna take mass losses, you. Want to consecutively. And. Can sick it can, consistently. Keep. Making, the winning trades and. This. Goes back. To buying, enough time for options or if you own shares I mean. You own them so. What. You want to look for here is something you know that comes up like this and. Then. You. Know whenever you dean is the best for you to, enter, your trade. You. Will enter it and. I. Usually. Look for the next, significant. Day that. It. Creates a profit for me and. That. May be a day trade it may be just a one day swing. But. When I when, I hit profit, like. Decent, profit. And. What I mean by decent profit is. If. I'm hitting like 20%. Or. Maybe a little bit more 20 of 30 percent um honestly. I start looking to get out with, options. Because. You, never know when any, stock in reverse, on you so, I don't like to hold anything, long-term. Even. In swing trades and. When. I get to 20 30 % I. Seriously. Start looking to. Sell, and. I'll walk away if that profit and. I just repeat everything all, over again so here. We are thanks, ray on. A daily chart let's. Look at you. Know PT, la it's, the same thing so I'm just gonna tap. Down and you'll see right here on the daily chart what. This is actually finding so you'll, see the gap up and then. You'll see the reverse right, here the reversal on the MACD so. Get. That one. There. You go there you. Go. Here. And. As you can see oh and. That's it right there so. You. Know it doesn't find a ton but. You. Know most. Of these are gonna, create your hots, now I originally. First talked to you guys about this on February, the 24th, and I. Have. A screenshot over here, where. I posted it in transparent, traders on the Facebook group this, is February to 24th, where I'm talking about this and I. Posted the, watchlist, so. We're. Gonna start from, the watchlist and. Now. Just I'll Jack your server a real quick just so you can see it you. Know you see it right there and, you. Know no need to, remember. These I'm just gonna go through them by typing them in manually, so. There. We go we have that so. Ticker, JD. We're. Gonna get on the daily chart this is February 24th. So, this was a Sunday when I had called. It out so. See, so, this is the 25th, this, is the Monday that, it opened up at so, the. Last trading day was the 22nd, I called you out on the 24th and this. Is how it opened that. Following, day. Which would have been a Monday the 25th, so, this, one right here opened up and you. Know if they'd shoot up a little bit but then it tanked by, remember I. Said. You. Know, the, next day when, you're entering this because you technically, want to enter these your. Swing trades at the, end of the day and. You. Know what I mean by the end of the day I would, say I would recommend probably the last hour to be honest. So. The, one energies at the end of the day and or.
Even I mean even the next day like let's just say you scan this tonight and. The. Next day you, want to see how, these. Tickers, turn out before you enter so, let's just say. You. Know. Let's. Just say that on the 24th, will not post this and show, you guys this, watchlist which I generated. This watchlist by this scanner, right here, that. You watched ticker JD, on the 25th. You. Know it started going up a little bit whatever and then it started dropping the next day and. You. Know you decided to enter at the end of the day so, the next day it actually opened up lower but then it went up and then the, next day you know that, day it went down but the next day you had a massive gap. And. Honestly. If. I was in it at that point I. Would. Have for sure sold, so. I. Mean. You. Guys see what I'm saying right here I mean this is this, is what I'm looking for and because. I would have bought enough, time on my contracts, I. Mean. I would. Saw some. Red in this, trade. But. I have time to endure. This and what. I mean by Tom and not a week I prefer. To buy a month a month, is probably. The sweet spot it. Gives, you enough time because you technically want to sell this. Before two weeks, so. You know some, of you might be thinking well if you want to sell this before two weeks why not buy two, weeks, left. On a contract, because. Of theta the, closer it gets to the expiration. The. More theta hurts, you so if you buy a month. It. It's. Like a crop a plane that crosses over you, know if you're looking at a diagram, you know you'll. You'll see the Arts on the diagram it goes up and makes the wave and that two, week mark it's that that pivotal. Point right, here so, I hope that makes sense if you know what I'm talking about you. Want to sell it before two weeks and, if. You can set the sooner you can sell it the better so. Something, like this you. Know let's, just say we would have entered it right here at 26, 18 and the. Next day you know they got up to 26. 64, blue they had a little bit of profit whatever, nothing nothing, crazy, next. Day we've been hurting a little bit and dropped down to 2598. But. Then the next day it, actually opened up at. At. 28, 58, I was, sold that out to open mic I wouldn't wouldn't, even try. To chase it for more profit I mean. You would have made. Killing, money on that honestly. Don't. Be greedy and try to hold for. More if. You try to hold for more more more you will, you'll, take losses that. Will. Just hurt so bad I mean, even though this next day right here it went up and it's high was. 29. 39. You. Know that would been great but, I mean. You, wouldn't have known that it was gonna happen so. When. You when you had this decent profits take, them so. That's, the you know first take care of this we'll just hit a couple more real quick so I can just show you so this video isn't too long.
Ba. Ba. So. Looking. For the 25th when they open and open up right here it gapped up and. Then it kind of trades sideways a little bit. This, was the, last Friday sort, of March first it had a high of. 160, 890 so. I, mean. Yeah, it, went up a few dollars I mean he would still made you know great profit, for. This one I. Mean. Again you're not hitting home runs here, but, if, you just sold it near that high you. Would have done done. Pretty pretty daggone good so. We'll, jump. To the next one PPI. This. One okay. So on. The twenty see. The. Twenty-fifth so. This, one you know actually. We've been ended, up being a bad trade and. Here. We go you, you know it would open up right here and a little spike but nothing nothing. Really great I'd open and. And. Then it just. Tanked. It, just honestly, got off, so. I, mean. Watching this one. It's. Too early to I, mean you have two bars right here indicating. On the day of the MACD that, you. Know this middle Bollinger Band line is shown. Some one of the support but it could break through that and completely. Reverse back downward, again. But, this is why, I always try. To trade. Large. Cap stocks this. Is, clearly. A small, cap. The. More expensive the stock is. You. Know the greater chances, honestly, for. It, to move up in value and. If. I can get in. If. I can get into a trade with the stock that's one. Hundred to two hundred dollars that's. That's, kind of my my range right there, will, my favorite range so. Um. We'll. Look at see. Just. Look at the next one ticker W. So. Clearly you know you see something great like this so. It. Would open up on that Monday right here and. It. Went up and you. Know it's just kept up. Trenton that's. Kind of a perfect trade I would not always Bank on this, but. That would've been great, so. Next. One TT, d. Here. We go so. On. The monday would open up right here it went up and actually ended up hitting its you. Know yearly high of 202 and, I. Mean. Honestly if I would have got in that opening the next day and. It honestly moved, up like, almost $10 I, was. Sold I just took the day trade and sold that I would. Not have even attempted. To chase, that anymore, I mean. If do you have a ten, dollar difference in profit. I. Mean. It's up to you but I take, it um, we'll. Look at. Look. At one more so, this, is a lower cap stock VI. Yeah. Okay. Let's see. So. It, opened up on. That one day right here yeah, went up and, then down and the. Next day you. Know this, one looks like crap and again remember the. Cheaper, stocks will. Give you problems like this honestly. But. Here. We go let's just saying you, had a horrible entry and, you. Bought, it to open on. That next day for, this one right here and then, just bad day whatever and the next day a bad bad. Right here well, just fallen day I mean actually, you. Know he capped up when it opened I mean. At this point I just sold it you know made a little bit of profit. Because. The way it opened up and I, would just out of, pulled. Up stakes. And cut it loose and took, my little bit profit and moved on. So. Again. We're, not hitting home runs here. We're. Looking. To. Take maybe a day a couple days to. Turn a profit. Building. Your account takes time and. When. Your swing trading something like this this is what you would, technically. Do and again, the more expensive stocks, you'll, have better results, as you, can see the other ones I had showed you already. And, let's. See I looked at I know. I said one more already but, this. Is I haven't even looked at this one so. This is more expensive one so right, here so. This. Is where opened up on that Monday as. You can see. Right. Here the more expensive stocks yield better results so. Again. I. Will. Share this. Um the, scanner with. You. It. Will be the. First line in the description, and. Make. Sure. You change this one to five minutes, keep. These other two a day, so. I hope, this helps you guys out in your swing trades I hope, that made sense with. What I was showing you and always. Like when you're trading special, options, the. More expensive stocks, yield, better results so. Thank. You for your time and I, will see you in the next one.