The purpose of the scanner is to deliver stock tickers of stocks based on defined trade characteristics.
Let’s say a trader is looking for stocks that are currently trading between $2.00 and $5.00 with a trading volume of less than 2 million shares today and 3 % price increase during the last 3 sessions (trading days). The scanner can deliver such results and many more based on these possible configurations.
What does a stock scanner do?
It is a software algorithm that connects and scans various financial related websites and sites that are related to social media. The objective is to get results in form of a stock ticker that fulfils certain trading behaviors and characteristics.
A scanner for example can be set to “show all stocks that are between $1.00 and $5.00 that have their value increased by 5 % or more within the last three days. Show me only stocks that have a trading volume not to exceed 2M shares today.
Here for example is a small view of the adx scanner.
You see that TWG had a strong green bar and WTO an smaller green bar. Now look at the charts of either stock.
The scanner was set to deliver stocks that have increased on value for a given time. This is an indicator for your to research the stock some more and to make an educated decision from that moment on. The scanner delivers results. It can provide information but the trading decision is till up to the trader.
