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Formation Scanner — Full Guide
Scanner table columns explained, bar type classification, sector buckets, and best practices.
Overview
Formation Scanner is a multi-symbol pattern recognition scanner that monitors 250+ symbols across 14 sector buckets, classifying every bar using STRAT methodology and scoring setups for broadening formation quality, momentum, and trade readiness. It replaces hours of manual chart scanning with an automated, scored, actionable table.
Settings Reference
| Setting | What It Controls | Default | Notes |
|---|---|---|---|
| Sector Bucket | Which group of symbols to scan | Tech Large Cap | Select the sector matching your trading focus |
| Timeframe | Candle timeframe for pattern analysis | Daily | Daily recommended for swing trading |
| Score Threshold | Minimum score to display a result | 50 | Raise to 70+ to see only top-quality setups |
| Formation Sensitivity | How strict the broadening formation detection is | Medium | Higher = fewer but cleaner formations detected |
Scanner Table — Column by Column
| Column | What It Means |
|---|---|
| SYM | Symbol / ticker |
| TYPE | Broadening formation subtype detected (e.g., Ascending, Symmetrical, Megaphone) |
| SIGNAL | Current signal state: LONG (triggered), SHORT (triggered), RDY (ready — approaching trigger), WAIT (watching) |
| PRICE | Current price of the symbol |
| SCORE | Composite setup quality score (0–100). Higher = better setup quality. |
| ENTRY | Suggested entry price based on formation analysis |
| WHY | Primary driver of the score — what's making this setup rate highly |
| BRDG | Broadening formation quality rating (A/B/C) |
| LOC | Location within the formation (e.g., near upper boundary, near lower boundary) |
| PAT | STRAT bar pattern classification |
| CONF | Confluence stars (⭐ to ⭐⭐⭐) — overall signal confidence |
| ACTION | Recommended trade style (Swing / Scalp / Options) |
STRAT Bar Classification
| Bar Type | Definition | What It Signals |
|---|---|---|
| 1 (Inside) | Current bar's high and low are both inside the prior bar | Compressed energy — potential energy for breakout |
| 1-1 (Inside of Inside) | Two consecutive inside bars | Maximum compression — highest energy potential before a move |
| 2U (2-Up) | Bar makes a new high vs. prior bar | Bullish momentum continuation |
| 2D (2-Down) | Bar makes a new low vs. prior bar | Bearish momentum continuation |
| 3 (Outside) | Bar engulfs the prior bar (new high AND new low) | Institutional activity — high volatility, directional bias depends on close |
The 14 Sector Buckets
Formation Scanner covers 14 sector groups. Select the bucket most relevant to your current trading focus:
- Tech Large Cap (AAPL, MSFT, NVDA, GOOGL, META, etc.)
- Tech Mid Cap
- Semiconductors
- Financials
- Healthcare
- Energy
- Consumer Discretionary
- Industrials
- ETFs (SPY, QQQ, IWM, GLD, TLT, etc.)
- Biotech
- Retail
- Utilities & Real Estate
- Commodities & Futures
- Crypto
Tips & Best Practices
- Start with Tech Large Cap and ETF buckets. These have the most reliable COT/options data supporting Formation Scanner's scoring, and represent the most liquid trading instruments.
- Sort by CONF column for highest-confluence setups. Three stars means multiple independent factors are aligned — these are the setups worth investigating first.
- Check ACTION column for recommended trade style. The scanner recommends whether a setup is better suited for swing trading, scalping, or options. Don't fight this recommendation — the formation type and score drive this suggestion.
- Use Score 70+ as your quality filter. At the default of 50, you will see many setups. Raise to 70+ to focus on only the strongest candidates.
Common Mistakes
- Ignoring the WHY column. The WHY field tells you what is driving the score. If the primary driver is something that conflicts with your thesis, investigate before trading.
- Taking C-grade setups when A/B setups are available. C-grade broadening formations are included for completeness, not because they are equally tradeable. If A or B grade setups exist in the same bucket, prioritize them.
- Not pairing with Trade Execution Suite for actual entry management. Formation Scanner identifies setups and entry prices, but it does not manage your stop or take-profit levels. Always use Trade Execution Suite for structured entry and exit management.
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TDL provides non-customized software tools for educational purposes only. Not financial advice. Past performance does not guarantee future results.