TFMS Tradingscans

Discussion in 'Educational Resources' started by Brandonf, Mar 11, 2003.

  1. Brandonf

    Brandonf ET Sponsor

    Over the last several months we have been working with Jeff Semmel to develop our service at http://www.tradingscans.com



    TradingScans.com is the complete website for education and guidance in the understanding and use of Professional Stock Scans. It is designed for use by Investors, Day Traders, Swing Traders, and Serious Students of the Markets. Traditionally, traders have had to scan hundreds, possibly thousands, of charts nightly looking for chart setups. This is a tedious job requiring hours of work. Additionally, traders must employ charting programs and develop their own scans. These are difficult, time consuming tasks. Many times the charting packages are not designed to perform the necessary calculations demanded by this very complex marketplace. Tradingscans.com’s proprietary
    software scans 30,000 stocks nightly and finds approximately 2500 stocks that may potentially meet the TradingScans.com set-up criteria. Then, the system further refines the list to about 1,000 candidates using a volume, price, and volatility analysis. From these selected stocks, approximately fifty to one hundred are provided to TradingScans.com subscribers in various categories as buy/short sell candidates; in addition to a wealth of scans broken down by numerous categories.
    Daily swing and day trade recommendations are based on proprietary scans which produce detailed charts and technical analysis based on the "Basic Swing Setup" and "OOPS Trading Tactics" as well as many "Advanced Trading Tactics", saving hours of tedious manual scan work each evening.

    TradingScans.com provides educational results that, including, reviews and enhanced analysis of successful as well as unsuccessful stock/trade recommendations. These areas can be utilized by serious students of the markets for further analysis.

    Additionally, TradingScans.com provides computer readable lists of stocks that meet our technical requirements. These results may be used use with popular charting software programs for traders who desire to do further analysis.

    There are four Styles of Trading: Long Term Trading, Swing Trading, Day Trading, and Intraday Micro Scalping. TradingScans.com is designed to help all these styles. The most popular styles of trading (Day Trading, and Swing Trading) will be discussed in detail next:

    How to achieve maximum benefits through effective use of Tradingscans.com each evening. The following briefly outlines the recommended approach for optimal use of the Tradingscans.com services on a daily basis:

    • Start your nightly analysis (homework) with a quick scan of Swing Trading - Sectors, Indexes and ETF Daily Charts - Sector Cross Reference - Daily Charts. Quickly scroll down all the sectors. Look at the charts very quickly to give you an idea of how the majority of the sectors are setting up. This will aid you in determining if the market is poised to advance or decline the following day. In the sectors that have basic buy/sell setups, examine the individual stocks in the lists that have color-coded subscripted buy/sell indicators. These are the stocks that are detailed in the other areas of Tradingscans.com. You may also wish to explore various sectors’ stocks using the “thumbnail” scans. If a sector looks particularly interesting, click on the “Display Charts” link to give a series of medium size charts complete with very interesting text information beside each chart. Should a particular chart be interesting, left-click on it to get a more thorough (and printer friendly) report about that stock.

    • Next, peruse the Major Indexes Cross Reference in a similar manner.

    • If you choose to trade sectors rather than individual stocks, you will find the Stock EFT HOLDRS Cross Reference very useful; as these are actual trading vehicles traded on the American Stock Exchange and can be traded just like stocks.

    • Next, look at the Swing Trading - Setups, Daily Charts, and Analysis (Daily Stock Setups – Scans). Some set-ups are better than others. You will use the skills which you acquired in daily use of the Tradingscans.com system to judge set-ups. Will all swing trading set-ups be picture perfect? Of course not. Tradingscans.com selections are driven by a computer model that attempts to find set-ups according to basic swing trading parameters. However, other conditions such as pre and post-market trading, news, and events leading up to the set-up can, at times, change a set-up's desirability. This is where your skill as a trader comes into play.

    • At this time, prepare your written lists of candidates.

    • Next, look at the Day Trading with OOPS Bars - Setups, Daily Charts. The markets in general alternate between wide range bars and narrow range reversal bars and the quantity of guerilla set-ups will often predict the volatility of the coming day. For example, if there are a lot of OOPS bars many times the markets will tend to gap open in the morning and snap back as the day goes on.

    • Make a note of set-ups of OOPS bars for use the next day in your written lists of candidates.

    • Now, take a quick look at the Day Trading with OOPS Bars - Results section comparing your OOPS lists from the previous day to the results as reported in the results section. Note that a spreadsheet like display is presented. This table shows how the Tradingscans.com set-ups of the previous day performed, and how the trader should have assessed such things as entry points, stops, and exits.

    • Advanced traders should now focus their attention on Swing Trading - Setups, Daily Charts, and Analysis - Oversold/Overbought Stocks Analysis. These are charts of stocks that have become over extended and may be due for a bounce.

    • Next, traders can get an excellent overview of the markets by looking at Trending Stocks Analysis and Moving Average Stocks Analysis. Scanning thumbnails may produce some candidates that may have been missed by the automated scans.

    • Now, look at the Volume Analysis set-ups. These set-ups are trend independent, showing stocks that had climactic volume the previous day. That is, where the volume was either five times greater than average or larger than any previous volume in the last three months.

    • Next, look at the Support/Resistance Analysis. Many times stocks tend to reverse direction at significant S/R points.

    • Now, go to New Hi/Low Analysis. This area contains more charts illustrating examples of the various techniques taught in the TFMS chat rooms. Many stocks forming “Phoenix” and “Avalanche” patterns can be found here. Many new trends are formed in stocks listed in this area.

    • The Candlestick Analysis Area contains charts of various Technical Analysis setups, using current data, rather than textbook examples.

    • That should conclude a tour of the Evening Analysis helpers.

    • All traders should be aware of the Day Trading - Gaps at the Open Area which is updated shortly after the market’s open. Here is where you will find stocks that gap at the open, but more importantly you can see which stocks are setups that gap. These are significant gaps, because they can lead to big moves at or near the open.

    • Finally, subscribers may want to visit the Tradingscans.com testimonials area which contains commentary from many of our subscribers, describing how Tradingscans.com has helped them.

    Brandon
     
  2. Brandonf

    Brandonf ET Sponsor

    One of my favorite sections of our http://www.tradingscans.com site is the trending stocks section. As traders we are often looking for stocks in strong trends, and this section of the product will sort that out for you. It is devided into all uptrending and all downtrending stocks, which are then sorted by volume so that you can choose the liquidity level of the issues you want to look at. To look at the Trending Analysis go to http://pages.prodigy.net/jsemmel/tradingswing.html

    In this section there are also numerous other subscans for retracments, 20 days highs, lows, stocks approaching moving averages, double tops, double bottoms etc.

    If you have any questions about using the products, or ideas of scans that you might like to see included, please feel free to let us know.

    Brandon
     
  3. jsemmel

    jsemmel

    Hello,

    I am Jeff Semmel the author of TFMS/TradingScans. I have been writing stock scans since 1998, and tradingscans.com has been designed to utilize the trading styles of Brandon Fredrickson and Toni Hanson.

    Trading Scans is designed to be functional rather that aesthectic. It is designed to assist professional traders quickly perform their nightly "homework" and assist them in finding the best intraday setups.

    I will soon be adding an Analysis section which willl contain the results of an extensive research project and will include various swing, longterm, and intraday trading setups.

    For a limited time,TFMS/TradingScans will be available at no charge. Please take a look!

    I welcome yourcomments, questions, and suggestions.
     
  4. What software platform do you use for the "back end" I guess is the word (??) to power your scans?

    I looked at the examples of the oops scans and they don't seem to match graphically what I though they should look like. Am I wrong? I used to trade those a lot.
     
  5. jsemmel

    jsemmel

    I use realtick for data.

    The oops setups are divided into 2 parts, one of which is called "preferred" which may be closer to what you remember as the 2 bar setup. The others are all long bars with short tails that sometime are useful in detecting traps which basically use only a 1 bar setup. The preferred bars will be the ones that I change as I complete the analysis work I am doing.

    The preferred bars, btw, exhibit much better performance but are limited in number of setups. However the total list of oops setups can be rather lengthy and somewhat difficult to manage at the open, so I usually only watch the preferred ones in a marketminder window of RealTick. I provide slf files for this purpose.

    hope this helps,
    Jeff
     
  6. jsemmel

    jsemmel

    I failed to mention that the entire system is written by me in Visual Basic and is a series of programs that scan data and build html files. It has been a lot of work.

    Jeff
     
  7. jsemmel

    jsemmel

    I just added an educational piece given by Brandon yesterday about trading "bear traps" in the education area.

    Today most of the oops trading setups were shorts, and I am always amazed at days like this when the market is up, that oops shorts work at all. 8 of 15 are up 2% or better, 3 are up 1% and only 2 stopouts.

    I post the results page right after the close.

    Jeff
     
  8. jsemmel

    jsemmel

    OOPS trades performed better than the markets, had several 10%+ winners and 38/41 were better than 1% gains most being in the 4-7% gain categories, both longs and shorts.. The preferred oops setups had 2 winners about 6% and one neutral - 2 longs and a short.

    results are posted at:

    http://pages.prodigy.net/jsemmel/results.html

    overwhelming short setups for tomorrow.

    Jeff
     
  9. jsemmel

    jsemmel

    I'm working on a backtest of the oops setups. So far I have created an html page that shows all 5% or greater gaps down at the open for red oops bars. I have daily and intraday data and charts going back to 10/1/02. It can be found at:

    http://pages.prodigy.net/jsemmel/TRADINGSCANS_historylist1.html

    Each oops trade setup gas 5 charts:

    1) on the left is the daily setup chart
    2) in the middle is a 5 minute chart from the day of the gap
    3) top right is a 15 minute chart of the day of the gap
    4) right middle is a 15 minute chart of QQQ if the stock is nasdaq or SPY if the stock is listed
    5) bottom right is a daily chart from 9 days past the trigger

    several of the 9 day charts seem to have bad data but most look ok. I'm still ironing out the bugs.

    so far I don't have any statistics showing results, that is coming next.

    I will be looking at these pages using the ""eyeball"" technique
    then I will be building html pages for minor gaps, flat openings, and surprise gaps.

    I hope to give a small presentation to the "systems group" here at TFMS private chatroom in a week or 2.

    let me know if this type of work is of interest to any of you and we can start a further discussion. I find oops trading to have some of the best potential of any style of trading that I have looked at. Today 2 "preferred" oops shorts have triggered and both have made their 2% goals. OOPS RESULTS are found nightly shortly after the close at:

    http://pages.prodigy.net/jsemmel/results.html

    these results are reported nightly and I save them for about 6 months.

    Jeff
     
  10. jsemmel

    jsemmel

    I have gotten a lot of emails about what exactly is the OOPS setup that I seem to spend so much effort in analyzing.

    An oops bar is a wide range candlestick bar with short tails on the daily chart. This type of bar indicates a degree of buying or selling that is considered excessive (greed or fear). We have observed that there is a high percentage of reversals on the day following many of the "preferred" bars, that can be exploited if you know how to enter and exit the trades properly.

    These entry and exit points are discussed in some detail in a few educational articles at the site, and are discussed every day in the www.tradingfrommainstreet.com chatroom (#tradingscans room).

    Typical goals of the "preferred" setups and trades ("preferred" setups use additional proprietary filters) are in the 1-2% amount, with the 2% goals highlited in yellow in the nightly results area of www.tradingscans.com. Most of the time these results are achieved in the mornings and only require a holding period of a couple of hours (often less). Often, larger "maximum" results are achieved most of which can be gotten on partial lots using standard money management techniques (such as the use of trailing stops), however, many times these setups themselves reverse, so profit taking is highly recommended at the above mentioned goals.

    I am also available at jeff@tradingscans.com for further information. As with all trading, prior results don't guarantee future performance, which is why we continuously monitor all trading styles offered at the site.

    For a limited amount of time www.tradingscans.com is offered at no charge to the public. Soon it will be integrated into the product mix of www.tradingfrommainstreet.com for a reasonable monthly fee, proceeds of which will be used to defer my development costs.

    Jeff
     
    #10     Mar 21, 2003