Relative Volume Strategy and Momentum Scanner for ThinkorSwim

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Sonny

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I would like to share something interesting I found when trying to find high momentum stocks. Please see the other thread I posted under Indicators labeled "Color coded watchlist columns." The RV1 value is very important in finding the strong stock of the day. When I ran my gap scanner around 9:32am, I found that the stock with the highest RV1 value tends to be very strong. For example, CBLI on 6/26, PDSB on 6/29, POLA on 6/30 and MYOS on 7/1. Each stock was a big winner on that day. So make sure to keep track of the gappers with the highest RV1 for big gains.

Also, I want to share a momentum scan that helps identify stocks early that are ready to run. Just create a scan with the following conditions:

Last: 0.5 to 15
% Change: 10% to No Max
Volume: 500,000 to No Max
Shares: 1 to 70,000,000
and
Custom Study Filter with Aggregation set to D (day) using this code:
plot scan = close >= (open*1.04);
and
Study Filter - (under Volume) Unusual Volume, Current bar's Volume increased at least 40% from its typical average over 60 periods and Aggregation set to D (day)

On 6/30, it showed OXBR and APEX; and on 7/1, it showed SUNW, LKCO, and MMLP before the big runs.
This scan helps investors shift their focus from the early gappers that sometimes fail to low price, low float stocks that make their moves later in the day. This scan works best on stocks that show up before 11:30am and RV1 values show up only after 9:30am.
 
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webdementia

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@Sonny Thanks for the scanner set up....I have a few that I use and I'm sure I have one similiar to this one, but this one seems to pull better choices. Will have to try it out this coming week.
 
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Sonny

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Today (7/6/20), AYRO had the highest RV1 at 9:32am and it had a huge run today! On 7/2, JOB had the highest RV1 at 9:32!
 
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apmerf

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@Sonny Hey, how has it worked for you the rest of this week? Are you just looking for the highest RV1 after the first few minutes of open and entering the trade or are you looking for any other confirmations?
 
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Gabrielx77

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@Sonny I've been looking at the watchlist and scanner you made and everything looks great! My question is: will the RV1 show up when I scan pre-market? I understand that it works after 9:30 am because that's when % change works, but if I change my "% change" filter to "Mkt % change" will I get the same results? Also, what is the probability that the ticker with the highest RV1 will eventually rise if it hasn't yet?
 
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Sonny

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@Sonny I've been looking at the watchlist and scanner you made and everything looks great! My question is: will the RV1 show up when I scan pre-market? I understand that it works after 9:30 am because that's when % change works, but if I change my "% change" filter to "Mkt % change" will I get the same results? Also, what is the probability that the ticker with the highest RV1 will eventually rise if it hasn't yet?

The RV1 only shows after 9:30 since the volume is accurate after 9:30 only. Also, the ticker with the highest RV1 doesn't always rise up after 9:30 since the move sometimes happens in premarket. It is worth tracking the top 3 tickers with the highest RV1 for spikes but like everything else, it is not always guaranteed that they will spike after 9:30. The other scan is good since it provides an option if the morning Gappers fail early.
 
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Gabrielx77

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The RV1 only shows after 9:30 since the volume is accurate after 9:30 only. Also, the ticker with the highest RV1 doesn't always rise up after 9:30 since the move sometimes happens in premarket. It is worth tracking the top 2 tickers with the highest RV1 for spikes but like everything else, it is not always guaranteed that they will spike after 9:30. The other scan is good since it provides an option if the morning Gappers fail early.
Sounds good. I followed the scanner today to test it out and around 9:35-9:45 am, PSV and TEMU were the two highest tickers. They both sky rocketed today. Since sometimes you can miss the optimal entry point, do you wait for a pull back on the minute chart? Or do you use a 5m or 15m while watching?
 
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Sonny

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Sounds good. I followed the scanner today to test it out and around 9:35-9:45 am, PSV and TEMU were the two highest tickers. They both sky rocketed today. Since sometimes you can miss the optimal entry point, do you wait for a pull back on the minute chart? Or do you use a 5m or 15m while watching?

I use only the 9EMA and VWAP with the 1min chart. Wait for pullback to 9EMA for entry. That works well.
 
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Sonny

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@Sonny Hey, how has it worked for you the rest of this week? Are you just looking for the highest RV1 after the first few minutes of open and entering the trade or are you looking for any other confirmations?

Track the top 3 RV1 stocks as they have the best potential to spike. Sometimes, they spike in premarket, after 9:30, and sometimes afternoon. It's best to track these stocks. RV1 is just one indicator so you have to look at the big picture before entering a trade.
 
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Sonny

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I find it is helpful to set an alert when new symbols come up on the scan as you want to track these stocks early and enter when the setup is good.
 
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thealphabreed

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hey @Sonny Can you share the scanner settings you mentioned for ThinkorSwim? I am a little confused as which scan are you talking about. The RV or the other one. If you could paste both, i'd appreciate it very much
 
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Sonny

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hey @Sonny Can you share the scanner settings you mentioned for ThinkorSwim? I am a little confused as which scan are you talking about. The RV or the other one. If you could paste both, i'd appreciate it very much

The scan settings are listed above to catch rising stocks before the big spikes. I have another post called Color Coded Watchlist Columns like RV which are only watchlist columns. The key is to run the above scan along with the watchlist columns from the other post. Hope that clears it up. Make sure you set alerts when new symbols are added to the above scan to catch stocks early (shortly after 9:30).
 
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thealphabreed

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The scan settings are listed above to catch rising stocks before the big spikes. I have another post called Color Coded Watchlist Columns like RV which are only watchlist columns. The key is to run the above scan along with the watchlist columns from the other post. Hope that clears it up. Make sure you set alerts when new symbols are added to the above scan to catch stocks early (shortly after 9:30).
So if I understand you well, this post is a scanner setting and the COlor COde watchlist is a column setting?
 
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Sonny

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At 9:36 today (7/13), ANTE, INSE, and OSS popped up on the scan. So how would you decide which one to pick? Well, INSE had very little volume, barely above 100K and RV value was low. OSS had a big premarket run so did not have a lot of room to spike further. ANTE had big volume (>500K), huge RV, and had lots of room to run. So the scan will show you good stocks but you have to use these criteria to narrow down which stock is best for potential spikes.
 
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Sonny

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Today (7/13), the 3 biggest RV1 values belonged to EQ, ECOR, and ANTE. ECOR had a great premarket run, ANTE spiked after 9:35 and EQ had a good premarket run and a massive afternoon run. A great RV1 is not a guarantee of spikes but it gives you the stocks that have the best chance to make big runs. Also, it is best to track the top 3 and enter when the right setup comes up. EQ had huge volume around 12:15 and the price broke above VWAP. If you buy it at VWAP break with a 5% stop loss, you would sell if price drops 5% but hold it if it stays above VWAP and sell after it hits your price target.
 
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Sonny

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@Gabrielx77
Please see my post, Useful Intraday Stats on page 4 which has Premarket relative volume as a chart label.
 

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