How to read the morning pattern scan: what it covers, why only live setups appear, and what the direction chip, the status, the reward-to-risk badge and the thirty day expected-move pill each tell you before you act on anything.
Play Overnight scan results, and how to read them. The video loads from YouTube only when you press play, so nothing is requested from them before that.
Prefer to watch there? Open this video on YouTube.
Every weekday at eight in the morning, before you sign in, a batch job reads the daily tape across the large-cap universes and looks for chart patterns that are actually live. What you get is not a list of ideas somebody liked. It is the output of eight detectors run over the same window, and this video is about reading one tile properly.
It covers the liquid names in the S&P 500, the Nasdaq 100 and the Dow, and it lists up to twenty setups. Two filters do most of the work. A pattern only appears if it is still live, meaning forming or already triggered, so completed and broken ones drop off. And it has to clear a score threshold you control. Direction is not filtered at all: bullish, bearish and neutral setups sit side by side.
Start with the chip on the edge. Bull, bear or neutral, taken straight from the detector rather than guessed from the pattern's name, and it colours the whole tile. Then the pattern itself, a double bottom, a head and shoulders, a flag, a triangle. Then its status, which is the part most screens leave out: whether the setup is still forming or has already triggered. A forming pattern also tells you how far price still has to travel to trigger it.
Two badges carry the most information. The first is reward against risk, measured from the trigger price rather than from where the stock happens to be right now, and it turns green at two to one or better. The second is the one worth learning. It compares the pattern's target against the thirty day expected move built from the stock's own recent volatility, and says whether that target sits within or beyond it. A target beyond the expected move is not forbidden. It is telling you the pattern needs this stock to move further than it usually does, and that is something to know before, not after.
Every tile is a doorway. Clicking it opens the conviction grade for that name. The tech charts button opens the chart with the pattern drawn on it, and that tab has a video of its own later in this series. The trade plan button goes straight to structuring something around it. The scan finds candidates; those three surfaces are where you decide whether any of them is worth acting on.
One thing to be clear about: this is a list of what the tape is doing, not a list of trades to place. The same detectors feed the chart tab and the automation layer, so all three describe one tape rather than three opinions. Options Scanner is operated by Avenix Solutions LLC. It is not a broker-dealer and not an investment adviser, and it never holds customer funds. Options involve risk and are not suitable for every investor. Thanks for watching.