StockCharts Insider: The Secret to Spotting Actionable Trading Setups Right Now
Before We Dive In…
Many traders spend too much time flipping through charts to find the right setup. Sometimes, they’ll find something that looks good, while other times, they get a bunch of duds. But what if that process was backwards? Instead of searching for stocks, what if you use tools to tell you where the setups already are? That’s where scans come in.
It’s not simply using scans that makes them important. It's knowing how to think about them strategically. That mindset changes how you approach the market entirely.
The Hidden Power of Scans (it’s how you use them that counts)
Scans are more than just filters. Think of them as a lens into market structure.
Scans are simple. You select a condition, run it, and you get a list of stocks. But beneath this process is something quite powerful: Scans compress the entire market into a single idea. And each idea is a potential setup.
Here’s the shift: instead of poring through multiple charts one at a time, you’re analyzing one condition applied across a universe of charts simultaneously. Yes, it’s efficient. But it’s also a big shift in perspective. Charts may show you price action, but scans wrangle opportune setups. It’s a big difference, and it matters.
Seven Scan Categories and What They Tell You
StockCharts organizes scan menus into several categories. Each one represents a different dimension of market behavior.
Here’s how to think about them:
Predefined Groups: This lists the stocks in a wide group of indexes. It’s basic, but even here you can find the stronger stocks by categorizing them under the StockCharts Technical Rank (SCTR) tab.
New Highs: These scans point to leadership, indicating where both retail and institutional capital is often flowing.
New Lows: This is the flip side. More than just a list of underperformers, the scans might also help you spot potential reversal opportunities or short-selling setups.
Technical Indicators: These show where trend and momentum are already in motion. Use scans to zero in on setups with strength behind them.
Candlestick Patterns: Scans for many of the key bullish and bearish patterns are listed here. Many of these patterns can be useful in refining your market timing, especially in the short-term.
P&F Patterns and Structural Breakouts: Not many people follow P&F charts, but you can use these to remove noise and focus on pure price movement.
By The Experts: Here you’ll find a big list of unique strategies developed by StockCharts’ experts. Lots of useful stuff here, and I recommend giving them a try.
When you get stuck trying to figure out which stock to trade, ask yourself, “What condition might produce the best opportunity at the moment?” And then run a few scans.
There’s plenty more you can do with this. So, let’s start with the Insider Tips.
Insider Tips
Insider Tip #1: Create condition clusters.
Scans help you zero-in on the conditions they were designed to spot. That’s plenty. But sometimes combining them can help you come up with stronger trading candidates.
For example: A stock hitting a 52-week high is one thing. But a stock hitting a 52-week high on strong volume, surging money flow, and whose trajectory is within the RSI bullish range is something else entirely. You see those boldfaced conditions? Those are all different predefined scans. I just created a condition cluster; an effective way to combine scans.
Insider Tip #2: Use bearish scans to spot pullbacks and undervalued stocks.
Many of the stocks you pull up using a bearish scan are probably weak, or weakening. But what if a declining stock…
- Has a relatively high SCTR score?
- Has strong fundamentals?
- Falls within the favorable RSI bullish range of 50-70?
- Falls within a rising and bullish Ichimoku Cloud range?
There are so many more conditions to explore, but the point is that not all stocks generated by a bearish scan are bearish. You can find plenty of bullish reversal opportunities if you analyze carefully.
Insider Tip #3: Keep an eye on participation, not just results.
Suppose you run a 2x Average Volume Gainers scan. You get three stocks only. So, are these outliers strong candidates? You might want to check that. If the entire market is declining, are these three stocks on the verge of dropping?
Whether these stocks are exhibiting strength in bucking the trend, or just delayed weakness, the level of participation within the scan gives you plenty of context—something that many new scan users will miss entirely.
Insider Tip #4: Build a workflow, not a one-off scan.
Instead of running random scans, create a process:
- Choose a universe (Predefined Group)
- Identify strength/weakness New Highs/Lows
- Refine with indicators (2x Average Volume Gainers, RSI Overbought Above 70, etc.)
- Time entries with patterns (Indicators, Candlesticks, P&F, or just look at the chart).
The point? Now you can turn your scans into a repeatable system.
Insider Tip #5: Reverse-engineer the “expert” scans.
When you find expert scans you like, don’t just use them—study them and take them apart. What makes them tick? What conditions are being combined? What’s the underlying principle behind each scan? Learn how the coding syntax works, and now you’ve evolved from being a user to a strategist who can create scans.
Bringing It All Together
Scans don’t replace charts. They prioritize and focus your workflow.
Scans can help you see what’s worthy of attention while ignoring what isn’t. This way, you can see the market as a system, not just a collection of ticker symbols. Make this a habit and you’ll stop wasting time chasing setups. Instead, you’ll get right to the action on several fronts. You’ll start seeing patterns of opportunity as they emerge.
And That’s a Wrap
If you’ve been relying solely on charts, now you know to flip the process. Start with scans and let them guide your focus. Then, use charts to confirm what the data is already suggesting.
Because in a market that’s often filled with noise, real clarity doesn’t come from looking harder or wider. It comes from simplifying and structuring your process.
