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Scanning for Swing Trade Setups in TC2000 – The Trade Risk

hi everyone it is Evan here from the trade risk comm and in today’s video we’re going to be talking about scanning for stocks and if you’re finding this video just natively on YouTube we do have a full complete blog post that’s going to detail all of the scans that we talked about in today’s video and the exact PCF code and everything else that you might need or just want to copy or see in-text that should be appearing on your screen now to link to that article or you can find it below in the info section on this video so we’re going to start by answering you know why scan for stocks in the first place why does it matter why is this something that we want to do and then we’re going to just walk through how to create scans in TC 2000 filtering your stock universe defining your stock universe and then adding in your specific trade setups and patterns that you’re looking for and we’re going to do that with a few of my favorite setups that I look at almost every single day and my favorite scans that I look at every single day is what I meant to say so let’s take it from the top here first this is PC 2000 this is a software program it is a premium product it does cost to have this version of it they do have a free version called free stockcharts.com but if you want to scan using the same this format this software that you see on the screen here you’d have to head over to TC 2000 we have a link down below there that you’ll be able to find so why would we want to scan for stocks in the first place well if you’re an active trader this is an essential step in finding quality trade ideas to make money with so if you have a specific system or setup that you like to trade for example if you if you only like to trade bull flag setups for example you could create scan conditions that would only return to you stocks that are in that pattern that you like to trade frankly there’s too many stocks to keep track of all at once right there’s over 5,000 out are publicly traded companies for US retail investors and the only way you’re really going to filter out all of the noise and focus on the setups and patterns that you’re interested in is by having a set of scans that you can run through daily or weekly depending on how active you are to find your best trade ideas and then to sort of continue your execute on your strategy as you see fit so that’s why we scan for stocks it’s to find the stocks that we care about for our watchlist and now we’re going to get started and talk about set creating our first scan and defining our universe and following through on these steps here so the first step is creating a scan and in TC 2000 we’re going to click on this easy scans button up there we’re going to click on create new scan and that’s going to bring us to this window right here so from here we’re going to select this list to scan this is our stock universe and TC to thousands great because there it’s quite flexible and where we can you know create our universe where we can scan under so if we just wanted to do the dow jones 30 stocks we could do that SP 500 Nasdaq 100 so if we wanted to go by specific indexes we could do that we could choose the noisy exchange at the NYSC exchange we could do the Nasdaq so there’s lots of flexibility here I prefer to always use the US stocks list right here and what the US stocks US common stocks list gives us are all of the stocks in the NYFA in the 9z and the Nasdaq without any ETFs and without any of the indexes so it’s just all of the common stocks under the Nasdaq in the NYC so if I were to scan that right now with no conditions you see there’s 4800 stocks inside of this bucket that I’ll be scanning on so that is what I prefer to use it’s one of the broadest ways to to sort of scan here if you wanted to have those ETFs in there you could scan specifically on the NYSC and then have a separate Nasdaq scan or you could just create like I do a watch list of all of your favorite ETFs and scan on that list separately there’s a lot of different ways you could do it but for us and for this video we’re going to use the US common stocks list for our scanning so now that we have our list in place we’re going to filter down that list because even though there’s 48 there are 48 hundred stocks there I don’t actually want to look at all 48 hundred of these because I’m going to have some requirements that I’m going to impose and the first one is going to be I only like to trade stocks that are trading above $8 so I like to trade stocks I like to get away from those $5 stocks and those penny stocks and I like to I like to trade something that has at least an 8 dollar price history so that’s the way I would label that there that’s going to return only stocks that are above $8 if I click on the scan now you could see that 48-hundred list that we originally had is now 3,500 so we just took off 1300 stocks there from our universe by just putting in this one filter so that’s the first filter I look at the second filter I look at is volume and I look for an average 20-day volume of 300,000 or more and I already have this scan condition in place so if you don’t have this on your screen I can show you how to make that later but for now it’s the average 20-day volume greater than 300,000 and I just put that to true so if I were to scan now you can see or down to 1700 stocks in our universe you can see continuing to shrink down our universe that we’re going to be scanning through and just setting what I call these prerequisite criteria and again these are my personal preference if you don’t mind trading stocks of any price range if you don’t care what kind of volume is traded then you can do without these scans these filters and you can you know cast your net across the whole 48 hundred stocks that we originally started with in the u.s.

Common stocks list so those are the first two I like to add I actually put another one in that sets the minimum volume for the past 20 days to be greater than 200,000 that is to save myself from any one day anomalies where let’s say earnings skews the 20 day volume average and you know let’s say it trades 2 million shares on its earnings day but every other day it’s generally trading 100,000 then I just want to make sure that that’s not kept in there so I add this minimum 20 day volume has to be greater than 200,000 and the final one that I add is an average true range is an average true range filter and I think for that one we’re going to have to just put in if we click on the ATR so we get this 14 period ATR and we want it to be or I want it to be greater than 30 cents okay so what that means is we want our stocks to move at least 30 cents a day that should be the average range 30 cents or greater a day so that’s going to make sure that we’re trading something that actually has some movement actually has some volatility that we can capture some trend and capture some movement from so this is my prerequisite filter list here on the US common stocks list again personal preference you can feel free to modify this or leave any of these that you don’t care about out but if we were to scan right now you can see we’re down to thirteen hundred and sixty-three stocks that is officially our universe inside of what started with 4800 stocks in this US common stocks list so that means now we have 1300 stocks that we are going to be filtering on and we’re going to be filtering based on the specific pattern and source setup that we’re looking for and in today’s video in this video we are going to build out a condition that looks for pullback setups in strongly trending or at least healthy stocks and if you have the blog post open that I linked you to in the beginning of this video this will be our third scan condition that we talked about on that page so again you can find that link below this video in the notes section and that will spell out the exact TCF formula that we are going to create now so this is where things can get a little intimidating for TC mm because you do have to write your own conditions and it’s not as intense as writing code so to speak but that you do have to look up to understand what their language with the syntax is for creating these scans I’ll put a link to the to the main sort of PCF syntax language and PCF by the way is personal criteria formula syntax so personal criteria formula that is what you have to create to create these scan conditions so it’s again let me just repeat that flow again you’re going to click on library you’re going to click on conditions and then you’re going to click on new condition formula and this is where it says edit PCF so this is I’m talking about this is a personal criteria formula and we’re going to we’re going to define a pullback setup in this little box here ok so we’re going to do scanning for stock scanning for pullback for a pullback and this is for our video so that’s going to be what our PCF condition is called and this is where we’re going to actually write the code you can see we have a time frame that we can actually select right up here so it is advanced and sophisticated enough that we could do this on intraday time frames or daily weekly monthly quarterly or yearly we’re going to do this on the daily timeframe because we’re interested in swing trading swing trades that up so pull backs that we could potentially get into for a multi-day swing so for this particular pullback trade there’s a ton of different ways you could define and write pullback trades but I’m going to keep this one very simple so what I’m going to do is I’m going to do the close of today because when you have sheet represents the close and this can be numbered so you could do the closed yesterday the close two days ago the close three days ago the close four days ago but if you just it would see that’s going to be the clothes today is above so it’s greater than the exponential moving average 20 period so the 20-period EMA so the clothes today is above the 20 period EMA so that gives us our first is baseline condition that says okay thumbs up we have a stock that is at least healthy in the sense that it is trading above the 20 period EMA now we’re going to add that with a couple of different conditions here that just basically says I want to look at shocks that are a above the 20-period moving average and have closed lower three days in a row okay so that basically means we had a stock that ran up above the 20 period and now it’s pulled back now three days in a row but it’s still above the 20 period so it gives us a potential great risk to reward entry into a healthy stock so the way we would write that is we would put our print open our parentheses and we would say we want the clothes two days ago to be below the closed from three days ago we also want the clothes from yesterday to be below the clothes from two days ago okay and then the clothes today is below the clothes from yesterday so this year will give us exactly what we want this is going to give us stocks that are closing above the twenty period and it also has the sequence where we’ve closed below the prior days clothes for three days in a row now so three days pullback it could be a four day pullback but if this will this won’t be specific it could be a four five six seven day pullback but it’s at least a three day okay so that’s it that is the full scan and if we so scanning for pullbacks – video is the name of that so if we hit ok and we go back to our original box here for our new easy scan and we click Add condition and we say video right here so scanning for pullbacks video we’re going to just click that in there and all it is is set to true basically on the daily timeframe and then we’re going to hit scan and we have 25 stocks that come up on this scan criteria so let’s run through them pretty quick and this is just based on today’s data of course and again this also includes all of the other prerequisites that we put in here so let’s go to stt this is the first candidate so here we go state street you can see it has pulled back multiple times now more than just the three days but it is trading above the twenty period so the yellow line on this chart is the or the orange line on this chart is the 20-period moving average you can see today’s close was yes was lower than yesterday’s closed which was lower than the prior days closed which was lower than this close so it meets our criteria and you can see it also actually pulled back from here as well and that’s a stock above the twenty period with a couple of closes below BNF here’s one now that actually looks pretty nice it’s been in a steady uptrend for a couple of months and you can see it’s now pulled back three days in a row still above the twenty period and B ANC here’s another one another Bank name this one’s pullback more than three days I see PT so here’s a pretty cool one I like to set up where we have a stock that had a strong thrust off of this consolidation lows or this little bottoming pattern here ran all the way up to about 133 134 and now it’s pulling back gradually here to these fast moving averages still above the 20 period so this is potentially a nice pullback set up where again it’s all going to just be what you’re interested in and this is going to come down to your personal preference and your strategy but you have this nice potential ABC if you were to look for you know set a trigger tomorrow above 125 if this starts to lift up above you have a nice pullback entry with a defined risk that you could put below the swing low trade back to the highs here just an example so that’s it that is how you create scans in in TC 2000 on the blog post I do list a few others that I like to use this is one of them this is an exact scan that I look at and I look for you know almost everyday fun if we’re in a healthy market I’m looking for long exposure this isn’t it this is an exact example of one that I use I have plenty of others so I hope this video helps we’ll leave it there and again the article itself has a little more info on it but this at least should get you started if you have questions leave a comment on the blog or leave a question on the YouTube channel if you want to see more of these feel free to to let me know that as well and perhaps I’ll do a couple more of these conditional of these of these scans so thanks guys for watching I hope you have a great day and hope to talk to you again soon

Scanning for swing trade setups in TC2000 is a guide to help you find the stocks that you care about for your watch-list.

It covers the basics of creating new scans, selecting and filtering your stock universe, examples of a few of my favorite scans, as well as some general tips that I’ve learned over the years.

If you need assistance with TC2000, writing scan conditions, indicators, or anything else, you can hire me to code: https://www.thetraderisk.com/consulting/

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Original Article Link: http://bit.ly/2m9Msp6
TC2000 PCF Syntax: http://bit.ly/2kOnco3

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