How to Run a Scan

For the swing trading strategy I've chosen a few of my picks come from running a scan on the market to see what's making the set-up I like to best trade. I use Craig's formula (the Trader's Action Zone or TAZ) on Swing-trade-stocks.com to set up a scan through Stockcharts.com. If you follow his simple instructions you'll be up and running, pulling your own scans, and making some serious money. You can also tweak his formula to restrict the type of stocks that appear - if you have a small amount to invest, like I do, then you may not want a stock that costs over $15.00, $30.00, or $60.00. You can also tweak the scan to make it pull long or short candidates for your watchlist.

Here are two scans I use frequently that my trading partner set-up and shared with me:

"TAZ" LONG $5 -$15

[type = stock] and [country = us] and[daily ema(60,daily volume) > 150000] and [daily high <> 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 >= 5]and [close <= 15]

"TAZ" SHORT $5 - $15

[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) <> daily SMA(10,daily close)]and [daily close <> 20.0]and [close >= 5]and [close <= 15]

Scanning the market is very simple but unfortunately it is not free. A membership with Stockcharts.com is $24.95 per month for the scan engine service. However, like commission you pay to brokerage firms, that's just part of the investment. Its not what it costs you but what it's going to make you... within reason of course!