StockBeacon Scanner Specifications

StockBeacon monitors real-time market and news data to identify stocks displaying characteristics commonly associated with short-term momentum. Each scanner uses a different methodology, allowing traders to distinguish between news-driven moves, unusual trading activity, continuation activity, and stocks opening substantially above the prior day's close.

The specifications below describe the current StockBeacon scanning methodology. Scanner criteria may be refined as StockBeacon continues to develop.

News Scanner — Top Alerts

The News Scanner monitors incoming market news and evaluates the stock symbols associated with each story. Its purpose is to identify stocks where a fresh news catalyst is accompanied by significant price and volume activity.

Initial Screening Criteria

  • Stock price must be between $0.60 and $20.00.
  • The stock must be up at least 3% from the previous day's close.
  • Relative volume must be at least 5x average daily volume.
  • Current trading volume must reach at least 100,000 shares.
  • The associated news story is analyzed for a potential catalyst.

If a stock meets the price, percentage-change, relative-volume and catalyst requirements but has not yet traded 100,000 shares, StockBeacon can continue monitoring the symbol for volume to reach the required threshold.

When all requirements are satisfied, the stock can appear in Top Alerts.

High Volume Scanner

The High Volume Scanner is designed to identify stocks experiencing unusually heavy trading activity even when there is no qualifying news story.

StockBeacon obtains a universe of the 100 most-active stocks by volume and evaluates those symbols for additional momentum characteristics.

Current Screening Criteria

  • Candidate universe: 100 most-active stocks by trading volume.
  • Stock price must be between $1.00 and $20.00.
  • Current trading volume must be at least 250,000 shares.
  • Relative volume must be at least 3x average daily volume.

Company information is retrieved only after a stock satisfies the principal price and volume requirements. Qualifying stocks appear in the High Volume section of the scanner.

Continuation Scanner

The Continuation Scanner looks for stocks previously identified by StockBeacon that continue to attract meaningful trading activity on a subsequent trading day.

StockBeacon records end-of-day volume for active News and High Volume stocks. Beginning around 10:00 AM Eastern Time on the following trading day, current volume is compared with the previously recorded end-of-day volume.

Continuation Volume Test

A stock demonstrates continuation when its current trading volume reaches at least 20% of the previously recorded end-of-day volume. This measurement helps identify stocks that continue to receive significant trader attention after their initial appearance in StockBeacon.

Removal from Active Monitoring

High Volume stocks that fail to reach the 20% continuation-volume threshold are removed from active monitoring.

News-driven stocks are given additional time because a significant news catalyst may remain relevant beyond a single trading session. A News stock that fails the continuation-volume test remains active until at least two subsequent trading days have passed since the news was released.

Gap Scanner

The Gap Scanner identifies actively traded stocks whose current price is substantially above the previous trading day's closing price.

The scanner currently evaluates the 100 most-active stocks by volume and calculates each stock's percentage gap from its previous close.

Initial Gap Qualification

  • Candidate universe: 100 most-active stocks by trading volume.
  • Stock price must be between $0.50 and $20.00.
  • Current price must be at least 5% above the previous day's close.

Once a stock qualifies, StockBeacon continues monitoring its current price, current gap percentage, highest price, highest gap percentage, trading volume and relative volume.

Gap Removal

A stock does not disappear simply because it pulls back from its highest price. For example, a stock that gaps 30% and subsequently trades 20% above the previous close is still considered a significant gapper.

Once the current gap falls below 3%, however, StockBeacon considers the gap to have substantially closed and removes the stock from the active Gap Scanner.

If the stock subsequently moves back to 5% or more above the previous close, it can qualify for the Gap Scanner again.

Remaining active Gap Scanner entries are cleared at the end of the trading day so that each new trading day begins with a fresh gap scan.

Relative Volume

Relative volume compares a stock's current trading volume with its average daily trading volume. A value of 5x, for example, means that the stock's current volume is five times the calculated average daily volume used by StockBeacon.

Scanner Hours

The High Volume and Gap scanners operate from approximately 4:00 AM through 8:00 PM Eastern Time, covering pre-market, regular-market and after-hours trading.

Important Information

StockBeacon scanners are screening and research tools. A stock's appearance in a scanner does not constitute a recommendation to buy, sell or hold a security. Scanner results should be evaluated together with price action, liquidity, risk, company information and other factors relevant to the trader's strategy.