How the Scanner Works
The Chart Pattern Scanner reviews thirty of the most liquid optionable stocks every night after the close and scores each one on a composite scale. Structure carries the largest weight (40%): the scanner looks for coiling price behavior — narrowing ranges, wedge compression, and double-bottom bases — the chart shapes that historically precede expansions in volatility. Options positioning contributes 35%, incorporating gamma concentration and how current open interest could fuel or cap a move. Momentum makes up the remaining 25%, measuring whether price is already leaning in the direction a breakout would travel. The result is a ranked watchlist of setups where structure, options fuel, and momentum are aligning at the same time.
How to Use the Results
Treat the ranked setups as a starting watchlist, not trade signals. A high composite score means conditions are compressed and asymmetric — it does not say when a move begins or guarantee a direction. Most traders use the scanner to narrow thirty names to the three or four worth building a plan around: check where gamma is concentrated for those tickers on the GEX dashboard, identify the strikes that would act as magnets or ceilings, and define entries and invalidation levels before the open. Compression patterns resolve violently in both directions, so position sizing and predefined exits matter more here than anywhere else. For the mechanics behind why concentrated options positioning accelerates breakouts, see our guide to gamma squeezes and the primer on how market maker hedging moves prices.
