Master the Think or Swim (ToS) Stock Scanner | Trading Tutorials

Name: Master the Think or Swim (ToS) Stock Scanner | Trading Tutorials
Uploaded: 2021-06-28T19:27:46.000Z
Duration: 1 h 4 min 37 s

Introduction to Thinkorswim Scanner

In this section, the speaker introduces the topic of using the scanner in the Thinkorswim platform. The focus is on the stock hacker and option hacker features.

Resetting the Platform

Click on the top menu icon (stack of three lines) and select "Reset" to clear all default filters.

Confirm the reset in the dialog box.

Top Level Filters

Located at the top of the scanner interface.

Narrow down search criteria to increase scan speed.

Default is scanning all stocks, but it's recommended to be more specific.

Examples of specific filters: All NYSE, All NASDAQ, Weeklies (for weekly options expirations).

Intersecting Lists

Can intersect one list with another to further refine search criteria.

Example: Selecting Weeklies and intersecting with NASDAQ stocks for tech-related trades.

Exclusions

Use exclusions to avoid redundancy in scan results.

Example: Exclude a pre-built core list from being returned in scan results.

Condition Groups

This section explains condition groups and their usage in scanning.

Types of Condition Groups

"All of the following": Default option that scans for conditions that meet all specified criteria.

"None of the following": Scans for conditions that do not meet any specified criteria.

"Any of the following": Scans for conditions that meet at least one specified criterion.

Usage Examples

None of the following: Specify a maximum trading price limit (e.g., nothing over $200).

Any of the following: Specify loose criteria like trading above $2 or having over 2 million shares volume.

Adding Filters

This section covers adding filters to the scanner.

Stock Filters

Focus on data associated with stock price.

Options include ask, bid, beta, close, EPS, high, last, low, mark.

Option Filters

Focus on data associated with options.

Options include delta, gamma, implied volatility (IV), open interest (OI), theta, vega.

Fundamental Filters

Focus on fundamental data of companies.

Options include average volume (AV), dividend yield (DY), earnings per share (EPS), market capitalization (MCAP).

Technical Filters

Focus on technical indicators and patterns.

Options include moving averages (MA), relative strength index (RSI), volume weighted average price (VWAP).

Saving and Naming Scans

This section explains how to save and name scans in Thinkorswim.

Saving a Scan

Click on the floppy disk icon to save the current scan settings.

Choose a name for the scan and click "Save."

Accessing Saved Scans

Click on the folder icon to access saved scans.

Select a saved scan from the list to load its settings.

Customizing Columns

This section demonstrates how to customize columns in Thinkorswim scanner results.

Adding Columns

Right-click on any column header in the scanner results table.

Select "Customize" from the dropdown menu.

In the Customize Columns window, select desired columns from available options.

Rearranging Columns

Click and drag column headers to rearrange their order in the table.

Removing Columns

Right-click on a column header and select "Remove" from the dropdown menu.

Using Saved Scans

This section explains how to use saved scans in Thinkorswim.

Loading a Saved Scan

Click on the folder icon to access saved scans.

Select a saved scan from the list to load its settings.

Running a Saved Scan

After loading a saved scan, click on the "Scan" button to run it.

The scanner will display results based on the saved scan criteria.

Modifying Saved Scans

To modify a saved scan, make changes to the filter settings and save it with the same name or a new name.

Conclusion

The speaker concludes by summarizing the key points covered in using the Thinkorswim scanner.

New Section

In this section, the speaker explains how to use filters in a trading platform to find stocks based on specific criteria.

Using Stock Filters

The speaker demonstrates how to set a minimum and maximum trading price for stocks using the filter options. By adjusting these values, users can narrow down their search range. Link to timestamp

The blue bar represents the selected range of stock prices, and it can be adjusted by dragging the handles. The histogram in the background shows the distribution of stocks within the selected range. Link to timestamp

Users can also add additional filters such as volume and percent change to further refine their search for stocks. These filters help identify stocks with specific liquidity and performance characteristics. Link to timestamp

Using Option Filters

Option filters allow users to focus on specific attributes related to options trading, such as bid/ask prices, days till expiration, implied volatility, and volume. These filters help traders find options contracts that meet their desired criteria. Link to timestamp

Days till expiration is a useful option filter for strategies like the wheel strategy, where traders aim for monthly income generation by selecting options with a specific expiration cycle. Link to timestamp

Implied volatility can be used as an option filter to identify extreme levels of volatility in options contracts. Traders can set a range for implied volatility values based on their preferences or strategies. Link to timestamp

Open interest and volume are two additional option filters that help traders find more liquid options contracts within an options chain. These filters indicate the level of market activity for specific options contracts. Link to timestamp

Fundamental Filters

Fundamental filters focus on company-specific fundamentals rather than stock price or trading data. These filters are more relevant for long-term investors building portfolios. Link to timestamp

Examples of fundamental filters include dividend yield and earnings per share, which can help investors identify companies with specific financial characteristics. Link to timestamp

The transcript is already in English, so there is no need to translate the content.

Using Pattern Filters in the Platform

The speaker advises against using pattern filters within the platform, as human eyeballs are better at finding patterns than technology. They emphasize the importance of a human touch in identifying solid setups.

Advantages of Human Analysis over Technology

Human analysis is better at finding patterns than technology.

It takes a human touch to identify solid setups.

Study Filters - Powerful Filter Type

The speaker introduces study filters as one of the most powerful filter types available in the platform. They explain that study filters can help find specific setups and highlight their usefulness.

Exploring Study Filters

Study filters are extremely helpful for finding particular setups.

There are various options available within the drop-down menu of study filters.

Specific types of candlesticks can be found using study filters.

Other filters include engulfers, inverted hammers (shooting stars), and hammer candles.

Corporate actions, such as earnings, can also be filtered for.

Earnings and implied volatility have a tight relationship for options traders.

Scans without earnings within a specific period can be filtered for.

Customizing Study Filters

The speaker explains how to customize study filters by adjusting inputs and adding custom studies. They highlight the versatility and usefulness of this feature.

Adjusting Inputs and Timeframes

Inputs within study filters can be adjusted according to preferences.

Timeframes, such as daily or intraday data, can be selected for scans.

Adding Custom Studies

Custom studies can be added through the condition wizard without writing code.

A moving average crossover example is demonstrated using simple moving average (20) below exponential moving average (9).

The created study is described in plain language and can be edited or deleted.

Building a Scan for High-Quality Stocks

The speaker guides the audience through building a scan to find high-quality stocks on the New York Stock Exchange. They explain the rationale behind each filter and emphasize the potential for investment ideas.

Top-Level Filters

Start with a blank slate and add top-level filters.

Narrow down to NYSE stocks.

Include only optionable stocks for potential covered call strategies.

The transcript does not provide further details on building the scan or running it.

High-Quality Stock Criteria

In this section, the speaker discusses the criteria for identifying high-quality stocks.

Minimum Share Price and Account Size

Minimum share price should be $25.

Maximum share price should be around $250.

Spreading oneself too thin is not advisable, especially with a smaller account.

Volume Filter

Volume should be at least 1 million shares.

Higher volume indicates better liquidity.

Options and Days till Expiration

Consider options trading as part of the strategy.

Look for stocks with a maximum of 31 days until expiration to generate monthly income.

Dividend Yield

Aim for a dividend yield of at least 2% or greater.

No specific maximum defined.

Uptrend Confirmation

Stocks in an uptrend are preferred over those in a downtrend.

Use custom studies to identify stacked moving averages indicating an uptrend.

The 20-day simple moving average (SMA) should be greater than the 50-day SMA.

The 50-day SMA should be greater than the 200-day SMA.

Avoiding Overbought Stocks

Use the Relative Strength Index (RSI) study to avoid buying overbought stocks.

Set RSI value less than 70 to ensure it's not overbought.

Check that RSI has not been above 80 within the past five daily bars.

Custom Scan Query Creation

Create a custom scan query using all the specified criteria mentioned above.

Daily timeframe is used for scanning.

Moving averages and RSI can be adjusted if needed.

Saving Scan Query and Glitch Alert

Save the scan query as "hq" (high quality) NYSE stocks or any desired name.

Be aware of a glitch where Thinkorswim may change the scan timeframe to weeklies after saving. Double-check the timeframe before scanning.

Scanning and Results

Scan for stocks based on the saved query.

The number of results shown depends on the selected display limit.

Increasing the display limit does not impact scan speed; it depends on the specificity of filters used.

Timestamps are provided in seconds for reference.

Filtering Data in Watchlist

The speaker explains how to filter data in a watchlist by removing unnecessary columns and keeping only the desired ones.

Filtering Columns

Click on "Bid" and hold the shift key, then click on "Volatility Index" to select multiple columns.

Remove the selected columns in bulk, keeping only the desired ones like volume and percent change.

Description and symbol are also important columns to keep.

Saving Filtered Data as a Watchlist

The speaker demonstrates how to save the filtered data as a watchlist for future reference.

Saving as a Static Watchlist

Click on the three-icon menu and select "Save as Watchlist."

Name the watchlist with today's date (e.g., 6/27) and add a relevant description.

This creates a static watchlist that will not update automatically.

Loading Static Watchlist

The speaker shows how to load a static watchlist and access its saved data.

Accessing Saved Watchlists

Open the sidebar by clicking on the plus icon at the bottom.

Select "Watch List" from the dropdown menu.

Choose the desired static watchlist from the list (e.g., 6/27 HQ NYSE Stocks).

All saved stocks will be displayed in this list, even if they no longer meet the criteria.

Generating Dynamic Watchlists

The speaker explains how to create dynamic watchlists that update automatically based on specific criteria.

Using Scan Query as Dynamic Watchlist

Load up personal HQ NYSE Stocks, which was previously saved as a scan query.

Add this as a dynamic watchlist by selecting the green icon next to it.

Any stocks that meet the criteria will be added to this watchlist automatically during trading hours.

Setting Alerts for Watchlist Changes

The speaker demonstrates how to set up alerts for changes in the dynamic watchlist.

Setting Up Alerts

Click on "Alert when scan results change" to receive notifications when the watchlist is updated.

Customize the alert settings according to your preferences, such as receiving alerts via phone or email.

Linking Watchlists with Charts

The speaker explains how to link watchlists with charts for further analysis.

Linking Watchlists and Charts

Use red one as the linked chart.

Click on a stock name in the watchlist to view its corresponding chart.

Analyze various indicators on the chart, such as moving averages and dividend information.

Access option chain details by selecting "Trade All Products."

Pre-Market Scans

The speaker discusses pre-market scans and shares an example of a scan used daily.

Building Pre-Market Scans

Scan for highly liquid options in weekly contracts.

Exclude personal core list from the scan results.

Set filters for stocks trading over $20 and with pre-market volume above 250,000 shares.

Manually review and analyze the resulting list of potential trading opportunities.

New Section

In this section, the speaker discusses creating a dynamic scan for high volume pre-market stocks.

Creating a High Volume Pre-Market Scan

To create a dynamic scan for high volume pre-market stocks, save the scan query as "high volume pre-market scan" and load it as a personal list.

The purple icon indicates that it is a dynamic scan that will update automatically.

Filter the scan by volume to find the highest volume stocks at the top of the list.

It is possible to intersect this list with gappers to focus on gap up or gap down stocks.

New Section

In this section, the speaker demonstrates how to use the high volume pre-market scan and intersect it with gappers.

Intersecting High Volume Pre-Market Scan with Gappers

Intersecting the high volume pre-market scan with gap down shows no matching symbols.

Changing the intersection to gap up reveals that SPCE (Virgin Galactic) is currently the highest gapping stock.

Checking SPCE's chart confirms that it is indeed gapping up above the prior day's high.

New Section

In this section, the speaker explains how they manually go through their pre-market scans and identify potential trading setups.

Manual Review of Pre-Market Scans

As more stocks meet the criteria of 250,000 shares before market open, manually review each setup in detail.

Spend around five to ten minutes combing through the list to determine if any particular setup is worth trading.

Examples of potential setups include LI consolidating below a key daily level and PLTR with a nice breakout point at $27.

New Section

In this section, the speaker discusses setting up criteria for regular market hours scans.

Setting Up Regular Market Hours Scan Criteria

Adjust the volume filter to reflect a minimum of one million shares traded.

Add an options filter to ensure highly liquid options with minimal bid-ask spread.

Apple is often the first stock that appears in the scan due to its high liquidity in both stocks and options markets.

New Section

In this section, the speaker saves the regular market hours scan query and explains how it differs from the pre-market scan.

Saving Regular Market Hours Scan Query

Save the regular market hours scan query as a dynamic scan without including "pre-market" in its name.

Load the saved scan query with a green dot next to it, indicating an option filter has been added.

New Section

In this section, the speaker prepares for market open and observes how stocks start populating on their high volume scan.

Observing High Volume Scan at Market Open

As market open approaches, more names are added to the high volume scan list.

Switch over to the high volume scan at market open and monitor as stocks start appearing on the scanner based on set criteria.

Apple may not appear on the scanner due to excluding the core list from the results.

The time it takes for stocks to meet the minimum contract volume of 2000 can vary depending on market activity.

Apple's Move and Scanner Results

The speaker discusses the movement of Apple stock and the process of scanning for results using a scanner.

Apple's Move Out of the Gates

Apple is making a nice move out of the gates.

The speaker is being patient and killing some time to show what will hit the scanner first.

If nothing comes in the next minute or so, they will cut out and join back later when there are more results on the scanner.

Scanner Results

After about five minutes, results start to hit the scanner.

There is a 2000 minimum on options contracts, which is why it takes longer to see results.

There is a big overlap with what was seen in pre-market, including stocks like Space, PLTR, and Boeing.

Once these stocks start hitting the scanner, it indicates liquidity and high interest from traders.

Different stocks offer different setups at different times, so it's up to individual preference on which ones to take.

Over time, familiar names tend to pop up repeatedly, allowing for building a mental watch list of liquid options stocks.

Pre-Market Analysis and Learning from Scanner Usage

The speaker discusses pre-market analysis and learning from using the scanner in real-time.

Pre-Market Analysis

PLTR had an initial pop but did not hold above 27 as expected based on pre-market analysis.

The speaker mentions discussing these observations in Discord for further analysis.

Learning from Scanner Usage

Using the scanner in real-time helps understand its functionality and how it can be used effectively.

Viewers can learn about the platform, technology behind it, study filters, etc., through this video.

Timestamps beyond 1918 seconds were not provided in the transcript.