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Thinkorswim Momentum Scanner Setup for High-Octane Stock Selection

    Quick Facts

    • 1. To set up a Thinkorswim Scanner for momentum stocks, go to the “Scanners” tab at the top of the platform and click on “New Scanner”.
    • 2. Select “Custom” as the Scanner type and name your Scanner (e.g., “Momentum Stocks”).
    • 3. In the “Criteria” section, click on the “Add Criteria” button and select “Stocks” as the criteria type.
    • 4. In the “Stocks” criteria, select “Momentum” as the criteria type and choose a momentum indicator such as MACD, RSI, or Stochastic Oscillator.
    • 5. Set the momentum indicator criteria to specific levels, such as MACD above its signal line or RSI above 70.
    • 6. Add additional criteria as needed, such as a price filter (e.g., stocks above $10) or a sector or industry filter (e.g., Technology or Healthcare).
    • 7. Click “Apply” to apply the Criteria and then click “Run” to run the Scanner.
    • 8. The Scanner will return a list of stocks that meet the set criteria, along with relevant technical and fundamental data.
    • 9. You can save the Scanner settings and run the Scanner at regular intervals to monitor for new momentum stocks.
    • 10. Thinkorswim offers a variety of advanced features and customization options for its Scanners, including the ability to backtest and refine Scanner settings.

    Thinkorswim Scanner Setup for Momentum Stocks

    As a trader, you’re likely no stranger to the concept of momentum stocks. These are stocks that are trending upwards, with a strong price increase over a specific period. In this article, we’ll explore how to set up a thinkorswim scanner to identify momentum stocks and take advantage of their potential.

    What are Momentum Stocks?

    Momentum stocks are stocks that have shown a significant increase in price over a short period. These stocks are often driven by factors such as earnings growth, industry trends, and economic conditions. By identifying momentum stocks, you can potentially ride the wave of growth and profit from the stock’s upward trend.

    Some examples of momentum stocks include:

    • Growth stocks like Amazon or Netflix
    • Tech stocks like Apple or Google
    • Industry leaders like Johnson & Johnson or Procter & Gamble

    Scanner Setup

    To set up a scanner for momentum stocks in thinkorswim, follow these steps:

    1. Log in to your thinkorswim account and navigate to the Scan tab.

    2. Click on New Scan and select Stocks as the asset type.

    3. In the Filter section, select Momentum as the filter type.

    4. Choose the specific momentum indicator you want to use, such as Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD).

    Indicator Description
    RSI Measures the stock’s recent price gains and losses to determine overbought or oversold conditions
    MACD Plots the difference between two moving averages to identify trends and potential buy or sell signals
    Stochastic Oscillator Compares the stock’s closing price to its price range over a given period to identify overbought or oversold conditions

    Customizing Your Scan

    Once you’ve selected your momentum indicator, you can customize your scan to fit your specific trading strategy. For example, you can:

    • Set a specific price range or market cap to focus on
    • Choose a specific industry or sector
    • Filter by dividend yield or earnings growth

    Some popular customization options include:

    • Price and Volume: Filter by stocks with high trading volume and a specific price range
    • Industry and Sector: Filter by stocks in a specific industry or sector, such as tech or healthcare
    • Growth and Value: Filter by stocks with high earnings growth or dividend yield

    Example Scan Settings

    Here’s an example of a thinkorswim scanner setup for momentum stocks:

    • Momentum Indicator: RSI
    • Price Range: $10-$50
    • Market Cap: $1 billion-$10 billion
    • Industry: Technology
    • Earnings Growth: 20% or higher

    By using these settings, you can identify momentum stocks in the technology sector with high earnings growth and a moderate market cap.

    Tips and Tricks

    When using a thinkorswim scanner for momentum stocks, keep the following tips in mind:

    • Monitor your scan regularly: Momentum stocks can change quickly, so be sure to monitor your scan regularly to catch new opportunities.
    • Use multiple indicators: Don’t rely on just one momentum indicator – use multiple indicators to confirm your trades.
    • Set stop-loss orders: Momentum stocks can be volatile, so be sure to set stop-loss orders to limit your potential losses.

    Here’s a list of additional tips for using thinkorswim scanners:

    • Use the thinkorswim on-demand video library to learn more about scanner setup and customization options
    • Experiment with different scanner settings to find what works best for your trading strategy
    • Use the thinkorswim mobile app to monitor your scans on-the-go

    Frequently Asked Questions

    Thinkorswim Scanner Setup FAQ – Momentum Stocks

    A: In Thinkorswim, the most critical factor is setting up the ‘Indicator’ section to define the momentum stock criteria. Create a custom indicator to analyze stock price momentum.

    A: Recommended indicators for momentum analysis include the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator (avgrange). However, the specific indicator to use may vary depending on the stock and time frame.

    A: To silence option selling alerts for momentum stocks, go to the Trade Management > Historical Data > Option Tracking > Alert Settings, and uncheck the box next to ‘Sell Options’ or ‘Short Sell’ for the specific stock you want to analyze.

    A: To set up the Momentum Breakout Indicator in Thinkorswim, click on the ‘Breakouts’ tab > ‘Indicators’ > ‘Momentum Breakout Indicator’. Choose ‘Buy/ Sell’ for the indicator type and set the price threshold accordingly.

    A: Yes, Thinkorswim allows you to assign different momentum indicators to specific stock symbols or criteria. You can create multiple indicators with different parameters to analyze various momentum indicators and apply them to different stocks.

    A: To update and customize momentum stock scanner settings in Thinkorswim, go to the Trade Management > Historical Data > Option Tracking > Trade Settings. You can edit the indicator parameters, add custom settings, and save to apply future changes.

    A: Yes, Thinkorswim can connect to various technical analysis tools and APIs to combine with additional indicators. You can explore and integrate these tools to further enhance your momentum stock scanner setups.

    A: To add support orders to your momentum stock scanner, click on the ‘Support Orders’ tab > ‘Trade Management’ > ‘Historical Data’ > ‘Trade Settings’. Assign specific support orders to specific stocks or criteria to react to short-term price movements.

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