Skip to Main Content

|

Five Awesome Day Trading Scanners

One of the most powerful tools on the TrendSpider platform is our no-code Market Scanner! Our scanner allows you to search for all kinds of conditions: Price, Indicator, Candlestick Pattern, Earnings, News, and more. You can scan up to four different time frames at once, and even give different sets of criteria different definitions.

In this post, we’ll go over some great ways to utilize the scanner to find day trading setups. We’ll break down what the conditions contained within each scan are looking for, suggest ways to enter and exit the trade, and finally, we’ll link you to each scanner so that you can load them into your account and utilize them on your own!


8/21 EMA Cross Scan

Some of the most common indicators to use when day trading are moving averages. There are several types of moving averages (Simple, Exponential, Hull, etc.), and different traders have different preferences as to which style they prefer. There is not a right or wrong moving average type or length to use, per-say, but we’ve chosen to focus on the 8 and 21 EMA due to their popularity.

What Is This Scan Looking For?

In the parameters contained in the image below, you’ll see two sets of condition groups. The first two conditions within each group define that price is closing either above or below the two moving averages. We want to see price above or below these moving averages because we’ll be looking to utilize them as support or resistance and for our take profit/stop loss.

Next, we’ve defined the EMA cross. Note that we have used three conditions within each group to define the cross up or down. This allows us to define a window for when the cross happened and we’ve defined that window as the cross occurring on either the current candle, one candle ago or two candles ago. We define ‘either’ using the ‘Any of the following’ prompt.

So as to save time and energy scanning, we’ve created this scan to look for both the bullish and bearish setups at the same time. The bullish setup being when the 8 EMA crosses up on the 21 EMA within the past 3 candles and price closes above both EMAs and the bearish setup being when the 8 EMA crosses down on the 21 EMA within the past 3 candles and price closes below both EMAs. You can view the conditions in the image below.

How Do We Enter?

For the bullish trade, we enter on the first candle that closes above both EMAs after the 8 EMA crosses up on the 21 EMA.

For the bearish trade, we enter on the first candle that closes below both EMAs after the 8 EMA crosses down on the 21 EMA.

How Do We Exit?

For the bullish trade, we exit on the first candle that closes below both of the EMAs.

For the bearish trade, we exit on the first candle that closes above both of the EMAs.

On the left-hand side of the image below is the bearish setup trade. We see the cross down and we enter our short position on the first candle that closes below both EMAs after the cross down. We exit the trade on the first candle that closes above both EMAs.

On the right-hand side of the image below is the bullish setup trade. We see the cross up and we enter our long position on the first candle that closes above both EMAs after the cross up. We exit the trade on the first candle that closes below both EMAs.

Link To The Scanner:

http://charts.trendspider.com/shared/6294c7696cfe130015a9b5c2?t=1

Scanner Tip: Try backtesting this setup. Experiment with time frames, moving average styles and lengths to tailor your trade to your favorite name!


RSI Divergence Scan

In trading, divergence refers to the idea that two things that should move in tandem are not at this time. For instance, if price is making higher highs, then so, too, should RSI. As well, if price is making lower lows, then so, too, should RSI. When price is making higher highs or lower lows and RSI is not following along, that’s divergence.

What Is This Scan Looking For?

In this scan, we’re looking for one of two setups. In the parameters in the image below you’ll see two condition groups. In the first group, we’ve defined that RSI is increasing over a period of candles (current candle, 5 candles ago, 10 candles ago) while price is making lower lows over the same period of candles. This defines a ‘Bullish Divergence’.

In the second condition group, we’ve defined that RSI is decreasing over a period of candles (current candle, 5 candles ago, 10 candles ago) while price is making higher highs over the same period of candles. This defines a ‘Bearish Divergence’.

So as to save time and energy scanning, we’ve created this scan to look for both the bullish and bearish setups at the same time. You can view the conditions in the image below.

How Do We Enter?

For the bullish trade, we enter when price gets above the high of the candle that made the lower low. We set our stops below that same candle’s low.

For the bearish trade, we enter when price falls below the low of the candle that made the higher high. We set our stop above that same candle’s high.

How Do We Exit?

For the bullish trade, we exit when RSI gets above 70.

For the bearish trade, we exit when RSI falls below 30.

On the left-hand side of the image below is the bullish setup trade. We note the divergence being made between RSI and price. Price makes a new low but RSI makes a higher low. We exit the trade on the first candle in which RSI is above 70 (outlined in a red circle).

On the right-hand side of the image below is the bearish setup trade. We note the bearish divergence being made between RSI and price. Price makes a higher high but RSI is unable to do so. We exit the trade when RSI is below 30 (outlined in a green circle).

Link To The Scanner:

http://charts.trendspider.com/shared/6294dd336cfe130015a9b5c3?t=1

Scanner Tip: Try utilizing different candle periods between price highs and lows and RSI values. Not all divergences occur in the way presented within this particular scan!


Reversal Candle On Volume Scan

The most common reversal candles that day traders tend to look for include the Hammer or Inverted Hammer candle, the Doji candle, and the Engulfing candle. These candles can occur throughout the chart, and in both bullish and bearish scenarios.

When price gets extended (in this example we’re using distance from VWAP to gauge this metric) in one direction or another and traders see these types of candles forming, they begin to anticipate that price might be about to reverse. Pair these candles with above average volume (commonly seen near tops and bottoms) and you might just have a recipe for a successful trade.

What Is This Scan Looking For?

In this scan, we’re looking for both bullish and bearish versions of this setup. In the parameters contained within the images below you’ll see two sets of condition groups. In the first group (the bullish criteria), we’ve defined that price is taking out the reversal candle’s high, volume is above average on the reversal candle, and price closed more than 1% below the VWAP on the reversal candle. As well, we’re looking for either a hammer, doji, or bullish engulfing reversal candle.

In the second condition group (the bearish criteria), we’ve defined that price is taking out the reversal candle’s low, volume is above average on the reversal candle, and price closed more than 1% above the VWAP on the reversal candle. As well, we’re looking for either a doji, bearish engulfing, hanging man, or inverted hammer reversal candle.

How Do We Enter?

For the bullish trade, we enter when price gets above the high of the reversal candle and set our stop below the reversal candle’s low.

For the bearish trade, we enter price falls below the low of the reversal candle and set our stop above the high of the reversal candle.

How Do We Exit?

For the bullish trade, we exit when RSI gets above 70.

For the bearish trade, we exit when RSI falls below 30.

On the left-hand side of the image below is the bearish setup trade. We note the multiple reversal candles forming. As well, we can see that price is extended greater than 1% above the VWAP. Finally, price is able to take out the low of the reversal candle and we enter into a short trade.

On the right-hand side of the image below is the bullish setup trade. We note the Doji reversal candle that occurs on above average volume. As well, we can see it’s extended below the VWAP by less than -1%. Price then takes out the high of said Doji reversal candle and a long trade can be put on.

Link To The Scanner:

http://charts.trendspider.com/shared/6294faa56cfe130015a9b5d6?t=1

Scanner Tip: We chose to exit this trade based off of RSI conditions, but you can use any number of alternate signals for your exit: Price closing above or below specific moving averages, price finding support or resistance at previous range highs or lows, etc.


Ichimoku Cloud and Tenkan-Sen Scan

The Ichimoku indicator can be a bit overwhelming due to how many components it contains, but if one understands on its individual parts, it can be used as a powerful trend indicator. When the Tenkan-Sen line crosses up or down on the Senkou A or B, respectively, it can be an early signal that the trend might be about to change. Using this cross as a signal to enter into a trade, traders can then utilize the cloud (comprised of the Senkou A and Senkou B), and specifically where price is in relation to it, to stay in the trade until the longer term trend begins to change again.

What Is This Scan Looking For?

In this scan, we’re looking for one of two setups. In the parameters in the image below you’ll see two condition groups. In the first group, the bearish setup, we’ve defined that the Senkou A is greater than, or above, the Senkou B and that the Tenkan-Sen line is crossing down on the Senkou A.

In the second condition group, the bullish setup, we’ve defined that the Senkou A is less than, or below, the Senkou B and that the Tenkan-Sen line is crossing up on the Senkou B.

How Do We Enter?

For the bearish trade, we enter at the close of the candle on which the Tenkan-Sen line crosses down on the Senkou A.

For the bullish trade, we enter at the close of the candle on which the Tenkan-Sen line crosses up on the Senkou B.

How Do We Exit?

For the bearish trade, we exit when price closes above both the Senkou A and Senkou B lines.

For the bullish trade, we exit when price closes below both the Senkou A and Senkou B lines.

On the left-hand side of the image below is the bullish setup trade. We note the white circle, which shows us where the Tenkan-Sen line is crossing up on the Senkou B and the Senkou B is above the Senkou A. We exit the trade when price closes below both the Senkou A and Senkou B.

On the right-hand side of the image below is the bearish setup trade. We note the white circle, which shows us where the Tenkan-Sen line is crossing down on the Senkou A and the Senkou A is above the Senkou B. We exit the trade when price closes above both the Senkou A and Senkou B.

Link To The Scanner:

http://charts.trendspider.com/shared/629565076cfe130015a9b5e7?t=1

Scanner Tip: Try backtesting these setups with alternate exits or different time frames. These setups tend to work best in a strong trending market, so when the trend is weak, a quicker exit might be required.


Range Breakout Scan

For some traders, simple price action is all that is needed to place long or short biased trades. In many cases, these traders utilize range breakouts to trigger an entry. A range breakout would be defined as price taking out the high or low of a previous set of candles. Trading range breakouts can be a simple, yet effective way to harness the power of trend.

What Is This Scan Looking For?

In this scan, we’re looking for one of two setups. In the parameters in the image below you’ll see two condition groups that contains two parameters each. The first condition group is the bullish setup and defines that price is closing above the range high of the previous 10 candles and that the volume on the current candle is greater than the average volume over the last 20 candles.

In the second group we see the bearish setup conditions. They define that price is closing below the range low of the past 10 candles and that volume on the current candle is greater than the average volume over the past 20 candles.

Note that, in both conditions, the ‘range’ criteria is defined as ‘1 candle ago’. By defining the range criteria in this way we’re removing the current candle from the range calculation.

How Do We Enter?

For the bearish trade, we enter at the close of the candle that takes out the previous range low, pending above average volume.

For the bullish trade, we enter at the close of the candle that takes out the previous range high, pending above average volume.

How Do We Exit?

For the bearish trade, we exit when price close above the middle of the previous range.

For the bullish trade, we exit when price closes below the middle of the previous range.

On the left-hand side of the image below is the bearish setup trade. We note the white circle, which shows us where price takes out the range low. We enter on the close of that candle and exit when price closes above the middle range line.

On the right-hand side of the image below is the bullish setup trade. We note the white circle, which shows us where the price closes above the previous range high. We enter our trade on the close of said candle and exit when price closes below the middle range line.

Link To The Scanner:

http://charts.trendspider.com/shared/6295b6d36cfe130015a9b5ec?t=1

Scanner Tip: Try different range lengths. We utilized a 10 candle range in this example, but the ‘range’ indicator is set to a 20 period, by default. The larger the range, the more meaningful the break above or below the range might be.


For those of you who are more visual learners, we created this accompanying video for this blog post. 


We hope you find these scanner ideas helpful and encourage you to load them into your shared scanner list and make them your own! If you ever have any platform-related questions, feel free to reach out to us in chat via the ‘Contact Us’ icon in the bottom right hand corner of your chart!