welcome to trade inquiry i'm the stock doc and in this video i'm going to explain how to use thinkorswim to create a stock scanner setup that can help us identify stocks like gme and amc that receive a lot of attention in a short period of time and therefore rocket and balloon up so this is an example of a stock that i found with this exact stock scanner i will be showing you and we'll explain later in this video in the second part how to actually trade this scan but first i do want to show you how to actually build it and walk you through the process once you're in thinkorswim i'd like you to go up to the top left into scan once here we're gonna set up a scanner that is gonna search for exactly what we're looking for and that is stocks that have a high percent change on the day they have a high amount of volume and they have a lot of people flowing in that ordinarily would not be trading signifying the potential for a lot of volatility first things first we're going to go over to the right and click add filter for stock come over to the left in the drop down menu we want to go all the way down to the bottom to percent change we want the minimum percent change to be a positive three percent of course the maximum we don't want to have a cap on we want it to be as high as possible what this tells us is that the stock is already making a move to the upside next we want to define the price range of the stock itself so again go to the far right click add filter for stock come to the menu and come to close and make the minimum 0.75 or 75 cents this gives us the ability to trade penny stocks that can move very far very quickly and also grants us the ability to trade stocks like gme and amc which have already been established and may have higher prices but still receive and can receive a lot of attention next up because we want these stocks to have a lot of people trading them we're going to put a minimum on the amount of volume that is being traded so again go to the far right click add filter for stock come on to the drop down menu go near the bottom and we want to click on pure volume and we want the minimum to be half a million this will help filter out stocks that are getting a lot of attention but don't have as much attention as we want finally we get to the fourth and most important filter within this scan remember our goal is to identify stocks that have a lot of people trading them which is changing the volume dramatically and changing the price of the stock dramatically there is an index that actually tracks this very well it's called the trade volume index so go on over to the far right click add filter for stock in the drop down menu go near the bottom again and click on volume index and for the minimum essentially think of it this way if 100 percent of people are trading it then that is the normal for the volume index if 200 percent are trading it that's an additional 100 percent on top of the people already there so if there's a hundred percent bulls and you add a hundred percent bears you are now going to be fighting back and forth which direction you want to take using that logic we want to push this number up to at least 250 percent this means that the amount of traders flooding into the stock is at least 250 percent greater than what is normal for that stock with those four filters in place we can then look at one final thing and that is where we are scanning currently i have it in all optionable this allows you the opportunity to either go long or sell short by trading options just bear in mind that trading options carries with it additional risk and necessary education to be able to trade properly let's go ahead and run this scan and see what stocks we can find and move into the second portion of this video which is how we can actually trade this scan what we find are six different stocks currently that fit with this scan the first thing i'd like you to pay attention to is that all of these are a positive change on the day meaning that they are receiving a lot of positive price action furthermore we can see that their volume is greater than 500 000 which means that there's a lot of stock being traded between traders and finally we can see that the volume index is very high meaning that there's a huge influx of people trading at this point in time let's go over to the chart and take a look at some of these stocks and see why this scan can be helpful and identify times in the past where the scan would have led to a successful trade first off over on the right you can see the results of this scan so i've pulled over ocgn which we see in front of us and right off the bat you can get a sense that this stock has completely ballooned up in a hype or meme or whatever it may be that is pushing this price well above its actual value now that's good for you as a trader because that higher volatility means the potential for you to make a very profitable trade keeping in mind that there are significant risks associated with trading volatile assets so let's talk about how we could trade this scan i'd like to draw your attention initially all the way back here several months ago when the stock initially took off let's zoom in and take a look now on the bottom here i do have this trading volume index and you can understand why this might be so helpful you can look at all of the previous bars leading up to this the volume index was actually very low until one day it started to spike up quite significantly and following that there was a lot of interest in this stock and it was able to push up quite dramatically when we take a look at this price action we notice that there is a massive push-up a failure a consolidation period a break above a trend line and a final push up before this spike and fall pattern came to a close if we then take a look at what is currently happening in this stock we see a possible similar pattern emerging we see the initial spike we see some consolidation we see a break of a trend line an attempt for the sellers to take over a resumption of buyback power and finally a very strong green candle if you recall earlier in this stock's history this is set up similar and resulted in the stock pushing up testing higher price points we can also see that on the trade volume index there is an increase in the index itself from this bar to this bar suggesting that far more people are coming in and indeed when you take a look at the volume you notice that more people are coming in on this bar than on this bar in terms of how you would trade this if you are a day trader you would need to very carefully pay attention to where this opened on the day there is a possibility that this will gap up in price and then start to settle down and sell off much like it did earlier in this stock's history alternatively the buyers may see this as another opportunity to really push this price up a third possibility i will offer you is that the buyers here were able to gain enough momentum to push this stock back to a prior high which was then sold off to create a bullish bar that is not as strong as many would like it is possible then that on the open on monday this stock will see an immediate sell-off as these buyers are taking their profits and new sellers are coming in to continue this downtrend as with all stocks these need to be traded very carefully but we can take advantage of not only the volatility but also the momentum of these particular stocks that are ballooning up and seeing a huge change in both price and volume another example i'll show you within this scan is aez now you can see with this particular stock that that second spike has not yet occurred and may not occur but i guarantee that day traders are very keen on watching this stock because they know it has the potential to push up very dramatically in a day so traders should be watchful of this particular stock to keep an eye out when higher highs are being made and higher lows are supporting the bullish momentum people interested in trading these types of stocks should keep in mind that smaller time frames may be more helpful to identify a potential entry point as you start to make higher highs and you see in the case of this stock you have a potential double bottom but you have a lower high than you had previously so we do not yet have a confirmed uptrend something to keep in mind finally i would like to spend some time on gamestop because this particular stock has seen a lot of attention recently and i want to show you that this scan would have actually identified this stock very early in this move if you take a look towards the bottom you will see not only a massive change in volume but also a push up higher in the trade volume index associated with this massive move in price this initial bar here would have triggered gamestop in our exact same scan on this day because gamestop would have showed up in this scan on this day imagine if you had taken a position the very next day you could have potentially taken advantage of this amazing price action that was essentially created out of thin air it absolutely ballooned up because there was a huge spike in volume and price that we have every capability of scanning for early that is the power of this specific scanner now i hope you were able to walk through with me how to create this scanner but for those of you who had some difficulty i will include a link in the description to this specific scanner i have noticed that on some of my videos those links are not working so if that is the case be sure to let me know i have a suspicion that it's on the end of thinkorswim rather than on the link itself and i apologize for the inconvenience regardless i will do my best to include that link otherwise if you have any questions or suggestions for future videos be sure to let me know in the comments below this video thank you so much for watching be sure to subscribe to my channel for additional videos on scanning for stocks and trading different stocks and assets i look forward to seeing you in the next video and remember trading carries with it a lot of different risks and those who can successfully trade over the long term are those people who have been able to manage their own emotions in the markets thanks again for watching and i'll see you in the next video