Posted on May 27th, 2009 at 2:30 PM

As I promised last week in Mentoring, I want to devote this entire week of blog posts to the Advanced GET Scanner. For equity traders, this is one of the most important tools inside of GET. I thought I would share some new scans that I’ve been working on to help isolate potential XTL Breakout Trades with a slight twist. To understand what this scan is doing, we first need to come to terms with the ways we have to identify trend with Advanced GET. The two most popular methods of defining trend are with the Stochastic False Bar and the XTL.

Because the XTL is based on price (the true leading indicator), we will often see the XTL Bars highlight blue or red before a corresponding false bar appears above or below the stochastic.

In this scan, I’m looking for two things to happen. First, I want to see a clearly overbought or oversold condition in the stochastic. A False Bar does not need to be displayed at this point. The second condition is the presence of the XTL Bar. The color of the XTL bar needs to correspond with the condition of the stochastic. When the Stochastic is above 75, the XTL needs to be colored blue. When the Stochastic is below 25, the XTL needs to be colored red.

In essence, we are looking for XTL Breakout Trades that line up with a stochastic that we anticipate showing us a false bar at some point. Now…..how is this different than the Prebuilt Set of the XTL Breakout? Well, the XTL Breakout Prebuilt set does not take into account the stochastic. By incorporating those criteria into our scan, we are now looking for trends early on but with an overbought or oversold condition that could give us a false bar if the trend continues.

The more scans you have in your arsenal, the more trade setups will come across your desk. Take a look at some of the candidates in the screenshots below you’ll see what I mean. Trade Smart.

~Duane Gott

XTL Breakout with Stochastic Overbought (> 75)

XTL Breakdown with Stochastic Oversold (< 25)

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