Scanning

Let's say we have created a Swing Trading System called the Super Swing Template.

Now, we really do not want to eyeball 1,000 over charts a day for Stock Picks. 

One solution is to use scanning software.

We let the computer scan through thousands of charts for us. This scanning process can take 30 to 40 seconds. 

The Scanning Software would then return to us the results for charts that have met our criteria.

By doing so, we only need to eyeball a small number of “hot” charts. This saves us a lot of effort and time.

Creating the Scanning System

To create the scanning system, we translate our swing trading system into mathematical algorithms and input into computer. For example, for our Super Swing System, the mathematical algorithm may look like this:
• 20MA(today) > 20MA (20days ago)  {Trend}
• Slow Stochastic < 30%    {Trigger}
• H > H1, and    {Confirmation using V Pivot Pattern}
• H1 < H2, and
• L > L1, and
• L1 < L2, and
• C > C1

Now, some of us might be freaking out at this stage over computer algorithms. Relax. This are many firms offering scanning services over the internet, and many programmers who are willing to offer their services.

If you asked us, we recommend Trading Trainer at www.tradingtrainer.com. The folks there has automated these computer algorithms so that all we do is press "SCAN" and the ripest stocks is given to us in 10 seconds or less! Wow! That's why we highly recommend their services.

For people with programming knowledge, we can always program our algorithms into MetaStock (the scanning system of our choice: see www.equis.com) or any other scanning system of your choice. Here is a good MetaStock resource site: www.meta-formula.com.

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