Consolidation breakout scanner

One of the ways we are doing that is through the all new Market Scanner, which is a game-changing technical scanner that works on multiple timeframes down to 1 minute to search the market like Google for charts that fit a specific technical criteria.

Today we are announcing a new set of pre-made Market Scanner configurations designed to identify powerful chart setups for you. Spider Scans are experimental — but high potential — scans with a large number of conditions complex conditions to search the market for potential reversals or breakouts.

There are currently six configurations in this category, with more to be added down the road. Here is a list of the brand new Spider Scan configurations currently available to you in TrendSpider. You can find them under the tag spiderscan in the Market Scanner:. Skip to content Announcements. Search for:. Bullish Double Inside Breakout : Two inside candles followed by a candle that is breaking out of the high of the middle candle.

Bearish Double Inside Breakout : Two inside candles followed by a candle that is breakdown down through the low of the middle candle. Triple Inside Consolidation : Three inside candles in a row. Please try them out and let us know what you think!

TrendSpider User Guides. See More User Guides.Breakouts are prime opportunities for traders because a stock has the potential not only to make a big move in a short period, but also to continue that directional move by gaining momentum.

The trick to trading breakouts is that finding a potential breakout before it happens requires looking at a number of different technical signals. The first place to go looking for breakouts is the aptly named Scanz Breakouts Module. There are a couple different ways you can use the Breakouts Module to your advantage. Perhaps the best option is to look for stocks that are both crossing above or below a simple moving average while also trading on higher than average volume.

Simply scan on these two parameters, then sort the results by ticker symbol to spot symbols that are breaking out on both price and volume. You can use the same technique to spot stocks that are also setting new highs or lows. Focus on volume and price. Ideally, stocks will form a price floor by making consecutive lows around the same price level over a period of weeks to months.

consolidation breakout scanner

At the same time, you can spot a breakout above that base when the stock sets a new high. Keep in mind that you can expand the timeframes of the scan parameters to look for stocks experiencing months-long periods of consolidation. Scanning for momentum stocks that are making a step higher or lower after a period of consolidation puts together a lot of the elements of the other breakout scans.

The main difference is that this scan looks only at stocks that very recently were making a steady directional movement on momentum.

These stocks are excellent candidates for a breakout, since short consolidation periods before the broader trend continues are very common.

This scan combines a search for stocks trading in a narrow range over a five-day period with a scan for stocks that have all the technical indicators of upward momentum:. Remember, this scan only looks for potential breakouts. A true breakout should close above the previous high set by the trend and should be accompanied by above-average trading volume.

If the consolidation goes on for too long, the chances of a step higher diminish. But, in that case, the stock would also lose its momentum and would no longer be captured by this scan. Stock breakouts offer a lucrative opportunity for traders who can identify consolidation patterns. With these four scans, you can use Scanz to quickly and easily find different breakout setups.

This indicator compares the closing price of a stock to its price range over a set period to determine whether it is overbought or oversold. Whereas many The volume-weighted average price VWAP is an indicator that is frequently used by day traders. By taking trading volume into account throughout the trading day, VWAP is able to inform potential buying and selling levels.

VWAP can be used on its own or as part of a Bollinger Bands are a widely used technical indicator that can help identify trends and serve as an indicator of volatility. There are a number of trading strategies that use Bollinger Bands to identify entry and exit points, either as the primary trigger or as a Screening stocks based on fundamental metrics can be a good way to improve the quality of your scans and complement an existing technical trading strategy.

So, it makes sense that you might want to focus your trading efforts specifically on this exchange. With Scanz, you can target your screens to search only for stocks on a specific Exchange-traded funds ETFs are extremely popular assets that enable traders to gain exposure to an entire asset class or market sector in one trade. Active Trading Blog.

Breakouts Module The first place to go looking for breakouts is the aptly named Scanz Breakouts Module. More Great Content. Creating a Bollinger Bands Scan Bollinger Bands are a widely used technical indicator that can help identify trends and serve as an indicator of volatility.Consolidating stocks may trade within a range for an extended time, but eventually they will break out of that range, usually in the same direction they were moving before the consolidation.

Scanning is a great way to discover these stocks as they are breaking out. Each of these four requirements will be discussed below, with specific scan clauses that can be used to test for each one. The first step to identifying a consolidation breakout is to establish that the stock has been trading in a narrow range.

consolidation breakout scanner

Similarly, we will multiply by 1. These multipliers allow us to determine if today's closing price is within the acceptable range. For example, if the close 5 days ago was Thus, today's close would need to be above Of course, this example only compares two values at two different points in time; it doesn't determine how much fluctuation in price might have taken place between those two points.

The next example improves on this somewhat by comparing today's closing value to the average closing value over a period of time in this case, 10 days :.

Note that consolidation is relative because some securities are naturally more volatile than others. When scanning, it is best to use percentage comparisons for the range of values over a period of time.

This is why multiplication is such an important aspect of consolidation scan clauses. If the highest and lowest prices are within the range, then we know that everything in between is also within the range. Another way to define the range is to take today's closing price out of the equation entirely and just determine the overall size of the trading range.

Note that the same period timeframe is used for all three indicators to ensure that we're measuring across a consistent timeframe. The second step is to establish that the stock was in an uptrend prior to the consolidation. This can be tricky to do, as we may not know how long the consolidation has been going on. Here is one way to scan for an uptrend prior to consolidation:.

In general, we would expect the close to be above the day simple moving average when a stock is in an uptrend. Once the stock begins consolidating, it doesn't change drastically in price, so we expect the price to stay above the day SMA while consolidating. Of course, if the price is very near to the day SMA, it may occasionally dip below it during the consolidation, but this generally gives a reasonable indication of an uptrend prior to a period of consolidation.

Many chartists stop at this point, using only the uptrend and consolidation clauses in their scans. This allows them to scan for stocks that are currently consolidating, save those scan results to a ChartList and monitor them for future breakouts. If you want to scan for consolidation and breakouts all in one scan, then the third step is to establish that the stock is breaking out.

Below are just a few of the ways you can find breakouts with scan clauses:.What's new New posts New profile posts. Get VIP. Log in Register. Search titles only. Log in. For a better experience, please enable JavaScript in your browser before proceeding. Thread starter BenTen Start date Apr 10, BenTen Administrative Staff.

Found this really interesting indicator for ThinkorSwim called B3 Consolidation Box that I wanted to share with everyone here. Want to know if a stock is under consolidation?

Well, this indicator is perfect for that. It basically highlights when a stock is consolidating and at which level it will be breaking down or breaking out. Here are a few examples:. He was doing some futurescast thing on consolidation boxes, and I had to see if I could make it work too. My Hypothesis is it is a great little scalper Rich BB code :. B3 Consolidation Box v1 -- Automates a box and shows the breakouts via price color with targets based on the box's range.

Intended only for the use of the person s to who m this script was originally distributed. User of the script assumes all risk; The coder and the distributers are not responsible for any loss of capital incurred upon usage of this script. HideCloud then BoxHigh else double. ColorPrice then color. Last edited: Oct 2, Very nice BenTen - Looking forward to checking it out. Thanks for posting it.!!

Last edited: Apr 10, I have used it in a past and it is useful at times. It's great to have it in a chart along with other indicators which you are currently trading.

BenTen I think there is a scanner for it as well. Steve New member Donor. Does anyone know if there is a watchlist column for this consolidation box or can one be created to alert you when a box is formed? Last edited: May 13, Steve I couldn't find a watchlist column or alert for this indicator yet. Thanks for checking Ben.

4 Great Ways to Scan for Breakouts

Be careful with "B3 Consolidation Box" if you do not understand re-painting of the indicator. It just re-painted CL. Last edited: May 14, GeneHo New member Donor. Last edited: May 15, Biocon is again showing sign of coming out of consolidation zone though volume is not increasing much MFI is increasing n possible breakout possible monthly analysis 1.

SMASH that like button if you appreciate this chart, or perhaps drop a comment below. Coming into this new week of trading I'll definitely be speculating how price reacts in this congested area of PA. I'd like to enter once price confirms my predictions on where price plans to go in the future before this happens we must wait and see what this pair brings to the table.

First we let price break out of its Price Accumulation then read candle stick Key level has been broken and re-tested. Now waiting for a minor consolidation breakout to enter a sell again TP 1.

Over the past days the price of gold has been consolidating in a triangle pattern. As well as between Let's see how it plays out. Thanks for This is making its U-turn, it takes time for this big cruise to turn around and head to north pole for Xmas. Volume shows perfect time for a break out. Early today it made a breakout to the downside and made a restest of the previous support also forming a lower high. We might see the pair drop to the next major support area.

Thanks for viewing. Comment with your thoughts I'd like to hear them. Predictions and analysis. Videos only. Top authors: consolidation-breakout. Biocon from 5 July DXCM1D. TEAM1D. IPHI1D. GOLD Prediction. Silver and Gold Senior - At the end of its downtrend. FRES1D. Show more ideas.

consolidation breakout scanner

For business.What you will learn in this video When I run this query on the scan tab it populates a few dozen stocks, but when I load the saved scan in tools on the left hand side, it shows no stocks. I'm brand new to TOS, so I may just be missing something obvious. What gives? It's so frustrating trying to learn this platform, as there really aren't many good sources for complete and detailed tutorials. MOMO from Mometic.

consolidation breakout scanner

I'm new to the TOS platform, coming from Scottrade elite. Is there a way to scan for certain candlestick patterns like bear or bull flags, penants, and BB breakouts? Quick question, how do you able to detect stocks that explode like LFIN?

Is there a filter that can hint on such moves? Thank you in advance from your response. Can you make a video on how to scan for breakdown stocks? I dont know how to go with doing that, i tried manipulating but could not find scannable results. Just a funny story, I purchased a stock then the company was acquisitioned to another company. I was on the losing side of that.

Good thing it was Paper money…haha. However, I did learn, all I had to do was pay a little attention to a little bit of news. The information was there, just did not do a good job researching. Thanks for you time.

Good stuff. Less complicated for me. Thanks, what about a scan that shows stocks closing red closes at less price than open for the day? Hi, Excellent Video!! For shorts, should i scan in "All Optionable" or "All Stocks"?

I've been scanning with TOS for a while and never thought of adding the new highs study filters, so thanks for that!! Your email address will not be published. The Overnight Gapper! How to find a stock to hold overnight for BIG Profits.

I break down some of the key indicators I use to find these overnight gap plays and what criteria I look for. Most of the time the market is moving sideways or consolidating between two horizontal levels that are known as the support and the […] scan FOR Breakout setups on finviz scan FOR Breakout setups on finviz Understanding the Different Between Swing Trading and Day Trading okay let me talk to the difference about swing trading versus day trading so many people talk about this about day trading swing trader shouldn't be a day trader should that be a swing […].

Can you made a video on Jason Bond? I suspect he is snake oil as well. Thanks for the video. Do you have a video on individual stock news, if Sink or Swim has this service? Nice thanks for the info! Just made my scanning easier. How did you get all the nice colors. Mine is just Old School: Tough on the eyes. Scans and chart layouts are in the member section of our site.Technical Analysis.

Markets spend a great amount of time ranging and going sideways. As traders, we call those periods consolidations. It pays off to know how to interpret and trade consolidations because they happen so frequently. Consolidations happen either during trending market phases or before a new trend. All consolidations represent a period in which the markets pause, where indecision about the next price move exist and where traders position themselves for the next move.

We distinguish between three consolidation patterns: sideways ranges, downward or upward sloping ranges also called flagsor triangular consolidations triangles, wedges and pennants. We will take a brief look at each pattern before exploring how to trade consolidation patterns.

A range is defined by highs and lows which can be connected using horizontal lines.

ThinkorSwim Scanner to Find Stocks before Breakout

Price spends a lot of time ranging and knowing how to trade consolidations can be an important skill for traders. To shake off amateur traders, you can frequently see false breakouts and breakdowns during horizontal ranges.

Below you see that the market moved sideways at the top and the price had fake breakouts to the bottom and the top as well. It is, thus, very important to wait for a confirmed breakout where the price actually closed outside of the range.

Flags are consolidation patterns that form during trends and they can be found between two trend waves. Whereas amateurs often mistake flag patterns for a reversal, the professionals wait for the successful breakout and the trend continuation.

Flag patterns are typically more reliable when the trend wave prior to the flag has been strong; it makes a trend continuation likely. Again, a trend without proper consolidations often leads to boom-and-bust behavior and then a trend becomes unsustainable. The most important factor when analyzing triangle patterns is the sequence of highs and lows and how the trendlines of the upper and lower boundary relate to each other.

B3 Consolidation Box: Breakout / Breakdown Indicator for ThinkorSwim

We wrote a complete guide on how to trade triangleswhich explains all the nuances in depth. When it comes to trading consolidations, there are three concepts traders need to be aware of which make trading more profitable and less risky.

The hardest part of trading consolidations is to avoid getting caught in false breakouts. The following three concepts help you identify high probability breakouts during consolidations.

The clues given by volume analysis are typically subtle but they can tell you a lot about what is happening in that consolidation and what is likely to happen next.

During a range, the volume is usually low and flat. But when price moves towards one end of the consolidation and volume picks up, it can foreshadow a potential breakout.

The screenshot below shows that each time price broke out, or was about to break up, volume showed an uptick. At the same time, whenever we saw a fake or failed breakout, volume was either low or declining. A consolidation is often referred to as a pot where the pressure slowly builds up while somebody is holding down the lit.

The longer a consolidation period and the narrower the boundaries of the consolidation, the stronger the subsequent breakout. However, the longer the range, the more traders will start paying attention to it and; long ranges will often have more false breakouts as the professionals try to shake off the amateurs.

During long ranges, waiting for a confirmed breakout and not entering prematurely — predicting a breakout — is the key to successful trading. Whereas volume analysis is helpful for stocks traders, the principle of retest-confirmation is especially valuable for Forex trading. Thus, a trader can either choose to trade the initial breakout — and run into false breakouts frequently — or wait for the retest while fighting the urge to trade and chase the initial breakout.

Further reading: Trading supply and demand zones. Consolidations happen frequently and they are a natural and necessary market structure during long periods of trends or before the existence of a new trend. Volume analysis, the length and width of the consolidation, shaking off amateur traders before breakouts, or failed breakout are all clues which help the attentive trader to connect the dots and enable him to make sophisticated decisions about the sentiment within that range.


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