Methodology

How the Structure scanner and the historical screener work, and their limits.

1. Trend

On the weekly and daily charts we find swing highs and lows from closing prices. Higher highs and higher lows make a bullish trend, lower highs and lower lows a bearish one, anything else neutral.

2. Bias

Weekly and daily must agree. Both bullish: the stock is checked for longs only. Both bearish: shorts only. Any disagreement, or a neutral trend on either, and the stock is skipped.

3. The flag band

On each entry timeframe (daily, 4H, 2H, 1H, 30m) we draw flag bands: stepped bands that trail price, with the step sized from the stock’s own volatility. Longs watch the lower band, shorts the upper band.

4. The stages

• Watching: bias set, no touch of the band yet.
• At zone: price has touched the band at least once.
• Confirming: two or more bounces off the band, with higher lows (longs) or lower highs (shorts).
• Triggered: confirming, plus a reversal candle at a recent bounce and the MACD histogram turning in the trade’s direction.

Each stock shows its furthest-along timeframe. Stocks whose price has already run well past the band are dropped. Within a stage, stocks are ordered by bounces, touches, reversal candle, MACD turn and how tightly price coiled into the band.

5. The historical screener (point-in-time)

The screener checks fundamental and technical criteria as of a chosen date. Fundamentals are limited to statements filed by that date (the SEC acceptance date, or the filing date when that is missing).

6. The other scans

Each scan in the app menus states its rule in one line. They use the same data and share the limits below.

Limitations

• No measured edge. Our backtests of these scans found none that beats a random baseline. They find charts; they do not predict returns.
• Delayed data. Prices are about 15 minutes delayed. Not for intraday execution.
• Restatement. Historical fundamentals use the latest figures our provider serves, which can include later restatements.
• Universe & survivorship. The scanner covers the 150 most-traded US stocks by dollar volume. The historical screener uses today’s S&P 500 list, so past screens carry survivorship bias.
• Not advice. Informational only, never a recommendation. See our Disclaimer.