How to Make Your Own Day Trading Scanner
In this article, I am going to discuss how to make your own day trading scanner step by step. Please read our previous article where we discussed 3 Techniques for Risk Management in Trading. Here, you will learn how to get the stock market data such as price, volume, and open interest data using a Google spreadsheet and how to analyze it. After reading this, you will be able to:
- Analyze end of data
- How to create your own Google spreadsheet for data analysis?
- How to use this sheet?
What is the 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 the market closed. NSEINDIA published this report in bhavcopy file
What to download?
Download the capital market bhavcopy file and Derivatives market bhavcopy file. The link is given below
How to make your own Google spreadsheet scanner?
All the steps by step are described in the below video.
Use of scanner
- We can predict the stock trend by analyzing the end of the data?
- We can find stock for the next day?
What contains in this sheet?
So for long stock should have high volume, high OI, and PCR>1. So, we make our buy column by giving the above condition
Change in Volume and Change in the open interest column
If ultra-high volume we find. Then something unusual happened. by checking the chart we can determine whether the stock for tradable or not. Whether it breaks out from any support or resistance level with high volume. then we must keep it on our watch list
Change in price
Here we will find top gainer or top looser stock. Check in the chart why the top gainer and a top loser.
Change in PCR column
Gap up and gap down the 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 the trading purpose, avoid stocks with lower volumes and lower open interest
The analogy of volume and open interest in the market is like that of fuel to a fire. If the fuels are 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 decline, fuel is 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 explain in live how to select stock for the next day based in end of day data analysis. Here is the list of stock that showing buys condition
Even our scanner shows buy condition. After the market opens if our trading setup didn’t tell then I am happy to avoid trading.
Tips: If the index and sector are bullish trade with strong stock on the 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 your own day trading scanner and I hope you enjoy this article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to learn more and clear your doubts.