Scanner Settings

The Volatility Box Live Scanner is designed to enhance your trading efficiency by pinpointing actionable volatility setups in real time. By understanding its key features and tabs, you can fully leverage the scanner’s capabilities to align with your trading style and timeframe. This guide provides an overview of how to set up the scanner, use its tabs effectively, and apply practical insights through case studies.

Tab Overview

The Live Scanner categorizes setups into specific tabs, allowing you to quickly focus on the opportunities that best suit your strategy. Each tab is tailored to different timeframes and trading styles, providing flexibility and precision.

1. Overlap Tab

The Overlap tab highlights stocks and ETFs that have breached both the hourly and daily volatility models simultaneously. These setups represent high-confidence opportunities, as they indicate alignment between multiple volatility levels.

Use Case: This tab is ideal when you’re looking for trades with strong statistical backing, as overlapping breaches provide enhanced confirmation of potential reversals or continuation setups.

2. Hourly Tab

The Hourly tab tracks breaches of hourly volatility models in real time, making it perfect for intraday traders seeking quick opportunities. The scanner identifies breaches of both aggressive and conservative models, ensuring a broad coverage of setups.

Key Insights:

• Refreshes every two seconds, scanning 11,000 stocks and ETFs to find volatility edges.
• Focuses on intraday price movements, offering setups within statistically significant zones.

3. Daily Tab

The Daily tab monitors breaches of daily volatility models, helping traders identify broader market reversals or swing trade setups. With fewer but more robust setups, this tab caters to those seeking high-conviction trades.

Key Insights:

• Flags breaches at statistically significant levels for the trading day.
• Ideal for multi-day trades or capturing larger intraday moves.

Applying Filters

While the Live Scanner does not include built-in liquidity filters, you can use its tabs and setup-specific filters to focus on actionable trades that align with your strategy:

• Aggressive vs. Conservative: Tailor your search based on tighter or wider volatility ranges.
• Long vs. Short: Filter setups based on directional preference, allowing you to align with market trends.
• Market Sectors: Prioritize industries or sectors based on your expertise or broader market insights.

Practical Case Studies

Case Study 1: Costco Breach on the Hourly Model

This example demonstrates how Costco appeared on the Live Scanner during heightened market activity, presenting an actionable setup:

1. Identification on the Scanner: Costco breached the cyan dashed line of the aggressive hourly model, triggering an alert on the scanner. This breach indicated a statistically significant move worth attention.
2. Volatility Levels in Action: As Costco entered the green cloud, it signaled a potential long-side setup. A deeper entry into the cloud offered an improved risk-to-reward ratio.
3. Confirmation Indicators: Using the Edge Signals indicator, a green arrow confirmed that the price respected the model, adding confidence to the setup.
4. Trade Execution: Traders could enter near the lower edge of the green cloud, with predefined stops placed just outside the cloud and targets set at the upper boundary. This allowed for precise risk management while capitalizing on the price movement.

Case Study 2: Nasdaq vs. Meta Divergence

In this scenario, the Live Scanner highlighted contrasting setups between Nasdaq futures (/NQ) and Meta (formerly Facebook), providing an opportunity to exploit divergences:

1. Nasdaq Breach on the Daily Model: The Nasdaq futures breached the conservative daily model during a significant market move, appearing on the Daily tab. This breach signaled a potential reversal zone for broader market activity, with the gray dashed line acting as the target.
2. Meta’s Divergence: Simultaneously, Meta breached the aggressive hourly model. The Live Scanner flagged this as an intraday setup, with Meta entering the green cloud and presenting a long-side opportunity.
3. Execution Insights:
   • Nasdaq: A swing trade setup with stops placed outside the conservative cloud and targets at the dashed line.
   • Meta: A quick intraday trade leveraging the aggressive hourly model for precise entries and exits.

Why These Examples Matter

The Live Scanner’s ability to monitor over 11,000 stocks and ETFs every two seconds makes it an unparalleled tool for identifying real-time volatility setups. Whether you’re capitalizing on Costco’s intraday breach or aligning Meta’s short-term momentum with Nasdaq’s broader reversal, the scanner simplifies the decision-making process and provides you with a reliable framework for trading.

By understanding the scanner’s tabs and integrating its signals into your trading plan, you can unlock greater efficiency and precision in your trading approach.