“An important key to investing is to remember that stocks are not lottery tickets!”
Souradeep Dey: When we look to make a trading or investment decision, the most important part is selecting the correct stock. Once we have selected the right stock for trading / investing, 50% of the work is done. The remaining part is about maintaining risk and money and managing the trade. Here we introduce to you the game-changing app- StockEdge. Let us explore the scan feature of this app. This is situated in the home screen of StockEdge.
In the StockEdge application, there are multiple functions by which you can choose or find out your perfect stock for trading and investment. The ‘Scan’ section is specifically designed to include a variety of technical and fundamental parameters which assists you to filter stocks as per your given inputs or criteria, both fundamental or technical. You can also filter stocks using both, fundamental and technical parameters using the ‘Combination Scan’ feature of the app.
In StockEdge, we have various scans like-
- Price Scan
- Volume and Delivery scan
- Technical scan
- Fundamental scan
- Future scan
- Option scan
- Candlestick scan
Using these, you can create your customised scan based upon your input from any one or combination of the above parameters.
All these are ingredients to make any successful trading scanner. But, before delving deep into the feature of combination scan, let us explore the individual types of scans one by one.
The price based scans in StockEdge help a trader to select stocks which are near or making 52 week high lows, or breaking recent highs or lows. Price action is often considered the supreme of all indicators. So with the help of this app you can filter stocks which match with some specific criteria.
Volume and Delivery Scans:
Volume is a supporting aspect of price movement. Many traders feel confident about sustainability of an up or a down-move if the price-move is backed by a spike in traded or delivery volume.
Technical indicators like CCI, RSI, William %R, moving averages(both simple and exponentials), MFI, ROC, ATR, ADX etc. are parameters which help traders to select stocks or classify stocks based on their momentum, trend, strength, weakness etc. StockEdge has all such parameters and they are continuously adding scans based on more and more technical indicators.
The Stockedge app gives you EOD analysis or filtering of stocks based on open interest changes, long or short build-up. This is important as majority of market volume is concentrated in the derivative segment.
Options scans (both at index and stock level) help a trader to select stock and sector based on option specific activities.
Candlestick pattern helps traders to find out reversals and continuation in stocks. This app categorizes stocks on various types of candlestick patterns.
Finally we come to the fundamental scan. Generally, a fundamentally good stock is expected to move higher in due course of time, so is a fundamentally weak stock likely to move downwards if its financials do not improve. Hence, once may choose to apply bullish technical scans in fundamentally good stock and bearish scan in fundamentally weak stocks. The StockEdge fundamental scan gives just that choice to the traders. However this is not a free feature. One has to subscribe to the app for availing this feature.
Finally, once we have discussed each categories of scan in a brief manner, we are ready to the topic of combination scan. The scan one wants to build will depend on his/her way of trading. This can be swing trading scan or a breakout scan. On can build a scan based on just 1-2 days of price movement or even a short to medium term price movement (3-10 days) in mind. With the help of fundamental scan, one may choose a scan for longer horizon too. But longer horizon is meant mainly for investing purpose rather than short term trading. But with a diverse possible set of individual scans at their disposal a StockEdge user can look to build highly effective custom strategy of his/her own. He can build the strategy, give it a specific name and save it.
Whatever stocks meet the specific criteria will be shown in the app on EOD basis. At present one can add as many as 10 custom conditions to filter stocks. There would be two sets of stock which meet the specific criteria, 1st the ones under perfect match, which meet all the criteria and 2nd the set of stock which meet most of the criteria but not all of them, will come under ‘Almost there section’. Here we share an example for your reference with a disclaimer that this has been created solely for demonstration of the features, not in any way being recommended as a specific trading strategy. Combination scan is also a paid feature of the StockEdge app.
If you still want some hand holding, then there is StockEdge Club. In this community a user not only has subscription to the basic membership which give you access to the “Fundamental Scan” and “Combination Scan”, but also he/she gets access to 12 webinars and one workshop in a year. Not only that, one will be part of a Whatsapp group, where one can get any query on markets answered by a panel of market experts. This is highly customized learning eco-system where you learn to build your scans on your own.
About the author: Souradeep Dey is a Senior Manager-Content Lead at Elearnmarkets.com and StockEdge. He has completed MBA from Management Development Institute, Gurgaon & Engineering in Information Technology from Jadavpur University. Prior to this he was associated with Futures First as Energy Market Analyst.. He is passionate about Equity, Commodity Market, Technical Analysis, Trading & Technology. He has also traded Brent crude oil and low sulphur gas oil in ICE exchange.
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