Some Tips, Tricks: How Stock Scanner Software Helps Eliminate the Uncertainty of Trading

Many traders anticipate a tremendous amount of variation in the stock market and either overcompensate or react too conservatively, holding their cards close to their chest. Whichever type of trader you happen to be, whether you’re a professional broker or “Trading from home,” you’ll find that stock scanner software such as MadScan can provide you with instant info, news, and take some of the guesswork out of successful trades.

The first thing any trader needs to know is that the price of stock is going to fluctuate. In the short term, that price can fluctuate quite a bit. A point analysis of the price can look like the inside of the shark jawbone at the Baltimore aquarium! Careful study will reveal that these peaks and troughs occur at fairly regular intervals. With Madscan stock scanner software tracking the stock’s movement, swing traders can easily track the patterns of these highs and lows and time their trades perfectly.

For traders looking to settle in for the long run, tracking the medium term uptrend provides a tremendous amount of insight into trading patterns. Stocks generally accelerate in three stages, which can be tracked in real time using a simple line graph manufactured by your stock scanner software. These grafts generally accelerate in three stages. The third (or final, if the stock defies the pattern) will be the one that accelerates along the steepest slope. When that price crosses the uptrend line without developing another peak a downtrend is about to begin. At that point, it’s time to trade.

Many traders choose to make use of the Andrews pitchfork when attempting to estimate the future price of a stock. Short term, the Andrew’s pitchfork can be used to identify profitable opportunities in the short term and identify overall cycles that affect the underlying spot activity on a long term basis.

The creator of the Andrew’s pitchfork believed that market price would gravitate toward the median line 80% of the time, with wild fluctuations accounting for the other 20%. He hypothesized that the overall long-term trend would remain intact. Pivots are drawn using highs or lows already present on the chart, which can easily be established using real time stock scanner software. In fact, given the fact that the Andrew’s pitchfork uses a tremendous amount of information to generate its conclusions, automated software can usually do the job much more effectively than drawing the chart by hand.

The experienced stockbroker knows that you rarely want to rely on one trend or plotting technique to make the final decision regarding your trades. Combining them with the other unique tools available through your stock scanner software will provide you with the arsenal you need to make strong decisions regarding your trades. Check out www.madscan.com for real time stock scanner software that can get you ahead of the curve!