Mastering Thinkorswim: Day Trading Scanner Setup

Embarking on a day trading journey? Thinkorswim, a powerful trading platform by TD Ameritrade, offers a robust scanner feature to help you find the best opportunities. This comprehensive guide will walk you through setting up and optimizing the thinkorswim scanner for day trading.

Before diving in, ensure you have a solid understanding of day trading strategies and risk management. The thinkorswim scanner is a tool, not a strategy. It's up to you to make informed decisions based on the data it provides.

Understanding the Thinkorswim Scanner

The thinkorswim scanner is a versatile tool that allows you to filter stocks based on various criteria. It's designed to help you find stocks that match your trading strategy, saving you time and effort in the research process.

To access the scanner, navigate to the 'Scan' tab in the thinkorswim platform. Here, you'll find a range of pre-set scans, or you can create your own custom scan.

Pre-Set Scans vs. Custom Scans

Pre-set scans are great for beginners, offering quick access to popular scans like 'Most Volatile,' 'Gainers,' and 'Losers.' However, they may not perfectly fit your trading strategy. Custom scans, on the other hand, allow you to tailor the filters to your specific needs.

For this guide, we'll focus on creating custom scans, as they offer the most flexibility and can be tailored to your unique trading style.

Building Your Custom Scan

To create a custom scan, click on 'Create a Scan' in the 'Scan' tab. You'll be presented with a range of filters, categorized into groups like 'Technicals,' 'Fundamentals,' 'News,' and more.

Let's build a simple scan for day trading. We'll look for stocks that are gapping up at the open, have high volume, and are in an uptrend. Here's how you can set up these filters:

• Price Action: Gap Up, greater than 2% from the previous day's close.
• Volume: High, in the top 5% of its average daily volume over the past 50 days.
• Trend: Uptrend, with a 20-day moving average above the 50-day moving average.

You can adjust these filters to fit your specific strategy. Once you've set your filters, click 'Run Scan' to see the results.

Optimizing Your Scan Results

Running a scan with broad filters can yield a long list of results. To refine your list, you can use the 'Sort By' and 'Filter By' options.

For instance, you might want to sort your results by 'Gap %' to prioritize stocks with the biggest gaps. Or, you might want to filter out stocks with low float, as they can be too volatile for your risk tolerance.

Adding Columns to Your Scan Results

By default, the scanner displays a limited set of columns. However, you can add more columns to display additional data points. To do this, click on 'Add Columns' and select the data you want to see.

For day trading, you might want to add columns for moving averages, relative strength index (RSI), or other technical indicators that inform your trading decisions.

Saving and Organizing Your Scans

Once you've created a scan you like, save it for future use. You can also organize your scans into folders for easy access. To save a scan, click on the 'Save' icon and give it a name.

To create a folder, right-click on the 'Folders' section and select 'New Folder.' Then, drag your saved scans into the folder for organization.

In the dynamic world of day trading, it's essential to stay adaptable. Regularly review and update your scans to ensure they remain relevant to your current trading strategy. The thinkorswim scanner is a powerful tool, but remember, it's just one part of your trading arsenal. Always combine it with thorough research and sound trading judgment.