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How to scan for stocks hitting support or resistance
Anyone know a good way to scan for stocks hitting support or resistance. Usually horizontal. I daytrade and just end up manually scanning stocks to analyze. This works ok in daytrading but it's very difficult in swing trading. I stopped trading with indicators but noticed it's hard to scan for price action using screeners. Thx
Can you help answer these questions from other members on NexusFi?
Well the issue is that you need to define exactly what qualifies as support and resistance if you expect an automatic scan to find what you're looking for.
If you ask 3 different people to specify the exact requirements for support and resistance you're likely to get 3 different answers. So im not aware of any scans available that do this, specifically for that reason.
Your better off scanning for weekly pivot points for price to be close to a pivot. That will get said stock etc on radar. Then you can see if the level is in accordance with your trade plan.
You scan for fractals or swing points. The difference between them from a trading point of view is small. If I may offer a suggestion, dont just look at horizontal S/R. Consider trend lines and trend line breaks.
That's great advice but I don't think tos can scan for horizontal or trendlines as well. It's hard to define. I'll look into weekly pivots on tos. Maybe possible. Thx
Finviz's screener has an option to screen for "patterns," which aren't perfect, but can at least narrow things down a bit. Open the free screener, then go to the "technical" tab and look for the patterns drop down box.
"Bob Charts are an exclusive feature in the Nebadawn Ramp Chart Pattern Recognition Program. Bob Charts go back one thousand trading bars to find the useable support and resistance levels on any chart or list of charts."
I have not used this particular feature yet. I have the silver EOD subscription since I am focused on swing trading. IMO this is the most reasonably priced scanner out there. I also have Nison Candle Scanner which cost me about $1100 several years ago and I still use it to scan for certain patterns or gaps in any timeframe, for any instrument.
You can choose the instrument lists to do the scans on such as Dow, Nasdaq, S&P, fx (from FXCM), etc.
Trade ideas is very good for scans. You have to know the technical criteria you are looking for though otherwise its a case of garbage in, garbage out.
