Market Scanner – Formations, Reports, and Web Applications
In our previous article, we have introduced the Market Scanner trading tool, containing numerous unique trading features that are not beneficial only for total newbies, but also for experienced professionals.
Today, we’ll introduce you to this trading tool more from a practical point of view, where we will demonstrate specific trading patterns our traders can trade by the use of Market Scanner, while we will also describe the reporting function as well as certain web application functionalities.
So, let’s go!
Selected trading patterns (formations)
Breakout and Completed
The Breakout and Completed trading pattern belong to the so-called breakout patterns, meaning that they are created based on breakouts through a pre-set support, resistance, or trend line.
Moreover, in the event of Breakout and Completed patterns, the big advantage of the Market Scanner is the fact that it has a unique feature drawing potential area (grey rectangle) directly to the chart where there’s a justified assumption that the price could hit this level in the future.
Image above: Completed breakout
Potential entry : In case of Breakout and Completed patterns, traders tend to choose often from two of the “most frequently” used possibilities:
- Entries into trading positions are executed (in the direction of the breakout) immediately when the trendline is passed (or: support, resistance)
- After the breakout, there’s a waiting period for the price to return to the level broker (expectation of future bounce from this line), and only then, trading positions are open (open in the direction of the breakout)
Potential danger : Market could form a false breakout (looks like a breakout, but after some time, it will drop back through the line).
Emerging and Approaching
Emerging and Approaching trading patterns are characteristic by bounces instead of breakouts, compared to the previous two patterns. Therefore, it’s expected that the price will be oscillating between two pre-set lines in this case, and with regard to the fact that traders know the rang where such price should be moving, The Market Scanner does not draw the potential target zone (grey rectangle).
Image above: Emerging
Image above: Approaches
Potential entry : In case of Emerging and Approaches patterns, most of the time, traders open trading positions (against the direction of hit) at the moment when the price hits one of the pre-determined lines (support, resistance, trend-line)
Potential danger : Market will form Breakout/Completed so that it won’t bounce from the pre-determined lines, but will pass through them.
Necessary information about trading patterns (not only about these ones, but other ones as well) and horizontal levels can be found in the articles here .
But that’s not all. Furthermore, Market Scanner offers you the possibility of sending reports to private e-mails of traders directly, and each trader may choose from different kinds of reports (Market Report, Correlating Alert, High Impact News).
This is a basic report, sent 3 times per day to traders (before the trading session in Tokyo, London, and New York is initiated). Within this report, the trader will receive basic technical and fundamental analysis in his mailbox, the validity of which is for the following 1-2 days.
Correlating Alert is a report providing information about actual and potential future opportunities.
High Impact News
Naturally, you’ll find reports warning about the news with high impact, to be reported during the respective trading session, and also in the Market Scanner. Traders may also opt to receive reports only for their selected trading sessions.
Autochartist is a web app having the same features that you may use in Market Scanner, but moreover, it has additional functionalities, representing some kind of extension of Market Scanner.
Important selected functionalities of the web application
This feature contains a visualisation of trading signals where it’s possible, among others, to find different trading details as, e.g., the type of formation, signal quality, etc.
Volatility analysis represents a valuable part of the web application as it provides information about price range to traders thanks to which, they may place their pending orders (Limit-Order, Stop-Loss, Profit-Target) subsequently on the basis of a “rational” ground and not just incidentally.
Within this analysis, traders get access to statistical data, based on which they find an overview about their success rate of generated trading signals.
As a conclusion, we would like to mention that there’s no trading tool that would work without any error, therefore, you should be vigilant even in case of Market Scanner and count on the fact that there may be trading sessions during which this tool may show higher errors rate.
If you would like to try out trading with top tier trading conditions and professional forex broker, don’t hesitate to try our demo account that you can open on our website completely for free and free of any risk: www.purple-trading.com
We wish you many profitable trades!
About the Author
Team Purple Trading
Purple Trading is a true and 100% fair ECN / STP forex broker providing direct access to the real market. High speed orders execution, no trade-offs, no limits for any type of trading, the most advanced trading technologies. Explore more about Purple Trading at www.purple-trading.com .
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