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Live Scanner

Simple Process

The Volatility Box Live Scanner scans over 11,000+ stocks and ETFs every two seconds to identify volatility setups across hourly and daily models. This guide walks you through a detailed, actionable process to go from scanner results to trade execution, incorporating a case study of a unique setup in Kroger (KR) for both short and long trades.

Step 1: Start with the Live Scanner

  1. Log in to the Stock Volatility Box Platform: Navigate to the Live Scanner and open the Overlap Tab. This tab highlights high-confidence setups where hourly and daily models align, signaling both short- and long-term volatility edges.
  2. Adjust Filters:
    • Model: Start with “All” to see both Aggressive and Conservative setups. For high-volatility events (e.g., earnings), narrow the filter to Conservative for wider levels.
    • Entry: Select “All” unless you have a directional bias.
    • State: Focus on “Open” setups, which are currently active.
  3. Prioritize Liquid Names: Skip illiquid stocks and focus on symbols with tight spreads and high trading volumes.

Step 2: Review Scanner Results

The scanner provides all critical data for trade evaluation:

  • Symbol: The ticker of the stock or ETF.
  • Timespan: Indicates whether the setup breached the hourly or daily model.
  • Model: Highlights Aggressive or Conservative volatility levels.
  • Entry, Target, Stop Prices: Use these to pre-calculate risk-to-reward ratios.

Step 3: Analyze the Chart

  1. Plot Volatility Levels: Overlay Volatility Box levels on your chart, focusing on green clouds (long setups) and red clouds (short setups).
  2. Confirmation Signals:
    • Edge Signals: Look for green arrows (long) or red arrows (short) to confirm price stabilization.
    • Momentum Cross: Ensure momentum shifts in your favor, confirmed by the 3 EMA crossing the 8 EMA.
  3. Check Multi-Timeframe Trends: Use the MTF Market Pulse indicator to align setups with broader trends.

Step 4: Filter for High-Conviction Trades

  1. Prioritize Overlap Tab Setups: These combine hourly and daily model breaches for added confidence.
  2. Calculate Risk-to-Reward: Use scanner data (Entry, Target, Stop) to ensure at least a 2:1 reward-to-risk ratio.
  3. Assess Market Context:
    • Use Conservative models during high-volatility events for safer entries.
    • In normal conditions, both Aggressive and Conservative setups are viable.

Step 5: Execute the Trade

  1. Enter the Trade: Place limit orders near the Entry Price to minimize slippage.
  2. Set Stops and Targets:
    • Stop-loss: Place at the scanner’s Stop Price.
    • Target: Place at the Target Price, or scale out as price approaches this level.
  3. Monitor Post-Entry: Watch for confirmation signals (Edge Signal, Momentum Cross) to validate your trade.

Case Study: Kroger (KR) – Short and Long Trades

Short Trade – Aggressive Start to the Day

  1. Scanner Setup:
    • Symbol: KR
    • Model: Aggressive and Conservative
    • Entry: Appeared on the Overlap Tab within the first five minutes of market open.
  2. Chart Analysis:
    • Price breached both Aggressive and Conservative models early in the session.
    • The Edge Signal confirmed oversold conditions with a red arrow.
  3. Execution: Entered short at the scanner’s Entry Price after confirmation. The trade moved quickly in favor of the sellers.
  4. Outcome: The trade achieved its target with minimal heat, demonstrating the effectiveness of early scanner signals.

Long Trade – Lunchtime Recovery

  1. Scanner Setup:
    • Symbol: KR
    • Model: Aggressive and Conservative (breach of lower volatility clouds).
    • Entry: Appeared on the Overlap Tab during lunchtime.
  2. Chart Analysis:
    • Price breached the Aggressive and Conservative lower volatility models.
    • Multiple Edge Signals confirmed oversold conditions.
    • The Momentum Cross indicated that buyers were regaining control.
  3. Execution: Entered long at the Entry Price after the second Edge Signal. Used the Target Price as the exit point.
  4. Outcome: Both scanner setups were supported by clear signals and aligned with the volatility models.

Tips for Success

  • Start with the Overlap Tab: Provides the strongest setups where hourly and daily models align.
  • Use Confirmation Tools: Validate setups with Edge Signals, Momentum Cross, and MTF Market Pulse.
  • Be Disciplined: Follow Entry, Target, and Stop Prices to maintain consistency.
  • Track Unique Opportunities: Unexpected names like Kroger can offer high-quality setups due to unusual volatility.

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