E-Trade Pro Settings
This scanner is designed to catch movers early, including in the premarket. The best way to use this scan is to not focus on every ticker that comes out, but on the tickers that have their names popping out the most and consecutively. I've included OTC in this scanner and it's meant to really focus down on what's moving by sending out multiple alerts. The more alerts a ticker receives, the more likely it's going to move
This scanner is similar to the Etrade Pro Momentum Scanner but focuses on penny stocks instead.
VWAP stands for Volume Weight Average Price. VWAP is a trading benchmark used especially in pension plans. It is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day.
Staying above VWAP would indicate continued momentum bullish price action while a drop below VWAP would be the opposite. However, in the short-term, share price has a strong tendency to mean revert to VWAP like a magnet.
This is especially true for stocks that are running on no news and trading hours in the early afternoon. Ideally traders should use this to scan for over-extensions, wait for consolidation and play the mean reversion on indications of potential reversals.
This scanner looks for short opportunities versus momentum stocks. Shorting a stock is to borrow shares through your broker and sell them on the market, waiting for the traded price to decrease and then buying it back at a lower price, returning your borrowed shares. Your profit is the difference between your sell and buy prices.
Depending on the type of market, a trader must be versatile in playing the market both ways, especially in a bear market where most stocks are heading down instead of up.