How to make own Day Trading Scanner
In this article, I am going to discuss how to make own day trading scanner step by step. So, here, you will learn how to get the stock market data such as price, volume and open interest data using Google spread sheet and how to analyse it. After reading this, you will be able to:
- Analyse end of data
- How to create your own Google spread sheet for data analysis?
- How to use this sheet?
What is end of data in stock?
Means what price did in that day .it shows open, close high, low, open interest, option chain data etc.
Where to get this data?
After market closed. NSEINDIA published this report in bhavcopy file
What to down load?
Download capital market bhavcopy file and Derivatives market bhavcopy file. Link is given below
How to make your own Google spread sheet scanner?
All the step by step are described in below video.
Use of scanner
- We can predict the stock trend by analysing end of data?
- We can find stock for next day?
What contains in this sheet?
Buy / sell column
So for long stock should have high volume , high OI, PCR>1. So, we make our buy column by giving above condition
Change in Volume and Change in open interest column
If ultra-high volume we find. Then something unusual happening. by checking chart we can determine whether the stock for tradable or not. Whether it break out from any support or resistance leve with high volume . then we must keep it in our watch list
Change in price
Here we will find top gainer or top looser stock. Check in chart why top gainer and top looser?
Change in PCR column
Gap up and gap down column
This column update aftermarket open. Have a look at this sheet
How to use this scanner?
Let me tell you some basic information
For trading purpose, avoid stocks with lower volumes and lower open interest
The analogy of volume and open interest to the market is like that of fuel to a fire. If the fuels removed from a fire, the fire will go out. If fuel (volume and open interest) is removed from a price trend, the trend will change or move will stop. When open interest and volume declines, fuel is being removed and the prevailing price trend is running on borrowed time. For a healthy, strong price trend (either up or down) to continue, open interest and volume ideally should increase, or at least not decline.
Option chain analysis
PCR=put to call ratio
Buy Rule: 1. Change in PCR(OI) is positive.
Sell Rule: 1. Change PCR(OI) is negative
In the video i did explain in live how to select stock for next day based in end of day data analysis. Here the list of stock that showing buys condition
Even our scanner shows buy condition. After market open if our trading setup didn’t tells then I am happy to avoid trading.
Tips :-if index and sector bullish trade with strong stock on bullish side.
In the next article, I am going to discuss How to Select Stocks for Intraday Trading with lice examples. Here, in this article, I try to explain how to make own day trading scanner and I hope you enjoy this article. Please join my Telegram Channel to learn more and clear your doubts. https://t.me/tradingwithsmartmoney. Please watch the complete video here.