This is a pretty basic scanner I use from time to time, it generally has a higher success rate when day trading than it does for swing trading. This specific scanner is searching for stocks doing an average of at least 2 million volume for the day and the stock being in either oversold or overbought levels on the MFI on the 5m chart. If you want to learn a bit more about MFI and how to trade with it check out this post.
How It Works
What I am looking for with this scanner is the MFI starting to curl one way or the other. So if I use the MFI Call Scanner I am looking at stocks where the MFI is below 25 and ideally I would like to see the MFI starting to curl up, that shows some buying momentum happening and I may be able to hop on and ride the stock up. An example of what that looks like on a chart is below:
As you can see in the image above you can see the MFI being oversold and starting to come out of this level. I was able to find this stock with this Scanner and ride the momentum up for a solid day trade. This strategy also works well for the Put side of a trade and can be utilized when the MFI is overbought and starting to trend down. Check out the chart below to see a stock that was found using the MFI Put Scanner.
You can see how you could have bought puts on AMD as MFI was overbought and curling down, playing this out could have netted some big gains intraday as this fell quickly late in the day.
I will include both the MFI Call and MFI Put Scanner below for you to add to your ThinkorSwim Platform. If you need assistance loading a strategy or scanner into ThinkorSwim click here.
MFI Calls Scanner: http://tos.mx/X6Hm2Y
MFI Puts Scanner: http://tos.mx/P36SlD
Let me know how this works for you or if you made it better add a comment and share your updated version!