Emerging Stocks Scanner Thinkorswim Setup Guide

Thinkorswim is a powerful platform for scanning emerging stocks, and setting up an emerging stocks scanner is a great way to start. To begin, you'll need to access the thinkorswim platform and navigate to the "Studies" section.

Here, you can select from a variety of pre-built studies, including the "Emerging Stocks" study. This study uses a combination of technical indicators to identify emerging stocks that are poised for growth.

The Emerging Stocks study uses a simple moving average (SMA) of 50 days to identify stocks that are trending upward. Stocks that cross above this SMA are considered emerging stocks.

To set up the Emerging Stocks scanner, you'll also need to add the "50-day SMA" indicator to your chart. This will allow you to see the SMA in real-time and identify emerging stocks as they occur.

To set up a premarket scanner in Thinkorswim, start by going to the "Scan" tab and clicking on the list icon in the upper right corner to show the scan query menu.

Click on "Load scan query" and select "Personal" to access a list of scanners, including the Low Float Scanner and the Pre-Market Gap up Scanner.

In the "Stock" settings, set the stock price minimum to 1.00 and maximum to 20.00, and set the volume minimum to 5,000.

Select "Shares" as the stock type, with a minimum of 50,000 and a maximum of 10,000,000.

Click the "Scan" button to pull down the results on the set parameters.

Save these parameters to Thinkorswim by selecting the list icon, "Save scan query", and naming the scanner, for example, "Premarket Low Float".

To set up indicators in Thinkorswim, go to the "Studies" tab and select "Edit Studies" to add your preferred indicators.

The Thinkorswim program has a huge number of built-in indicators that can be quickly found using the search bar, knowing their name.

For daily charts, I usually use the Simple Moving Average (SMA) indicator, which can be added by starting to enter its name in the search bar and selecting "Add selected".

Each indicator has its own settings, which can be configured in the "Price" section by clicking on the gear.

The length of the inputs for the SMA indicator can be set to 200 days, and the display color can be chosen.

The indicator display can be moved to the area where volumes are displayed or to an additional area below, which will be located under the volumes.

You can remove the indicator from the chart by clicking the cross next to its name.

You can save all your settings by going to "Studies", "Load study set", then "Save Study Set" and naming the file.

To set up a premarket scanner in the Thinkorswim (TOS) trading platform, start by going to the "Scan" tab. Click on the list icon in the upper right corner to select "Personal" scanners.

The Low Float Scanner and the Pre-Market Gap up Scanner are two scanners you can use in TOS. These scanners are often used to find stocks that meet specific criteria.

To set up the Low Float Scanner, go to the "Stock" settings in the "Scan" tab and click on "Mark". Set the stock price minimum to $1.00 and maximum to $20.00.

In the "Stock" column, select "Shares" and set the minimum to 50,000 and maximum to 10,000,000. Set the volume minimum to 5,000.

Click the "Scan" button to pull down the necessary results. You can save these parameters to Thinkorswim by selecting "Save scan query" and naming the scanner, for example, "Premarket Low Float".

To set up the Gap up scanner, increase the maximum stock price to $100.00 and set the volume minimum to 5,000. In the "Stock" column, apply "% change" and set the minimum to 5%.

Identifying compression near moving averages is a crucial step in setting up a scanner. This involves defining a compressed range by calculating the highest high and lowest low over the past 10 bars.

The compressed range is compared to the Average True Range (ATR) value to identify compression. This is done by checking if the range is less than or equal to twice the ATR value, indicating compression.

To ensure we're looking at stocks with a specific trend structure, we define the 8 EMA, 34 EMA, 50 SMA, and 200 SMA. The condition for these moving averages is set to ensure that the 8 EMA is greater than the 34 EMA, the 34 EMA is greater than the 50 SMA, and the 50 SMA is greater than the 200 SMA.

We also create a condition to check if the stock price is within a certain percentage of the 50 SMA. This helps identify stocks that are close to this moving average, indicating potential compression.