Examples on how to use the Strat scanners

These are our suggestions on how The Strat indicators and scanners in Hammer Pro can be used. Let’s
break them into 2 categories:
- Research and preparation
- Trade execution
For your research and preparation, depending on how familiar you are with The Strat, you can
assess the market environment through analysis of the long term time frames and through sector
and stock comparison. This way you can narrow down your selection of stocks symbols to a
number that is easier for you to monitor more closely in order to execute trades.
Let’s say for example that you have some sector ETFs in your Watch list. You can scan through
them for Full time frame continuity on the higher time frames and see which ones exhibit relative
strength – those that are green for the year or the quarter clearly show signs of buying and those
that are red – just the opposite.

You can also use this top-down approach in a different manner. For example, by scanning for 2-
Down and 2-Up patterns you are going to see relative strength or relative weakness through a
different lens. After all, if something is trading above its previous high for a certain time frame
isn’t that just the definition of a breakout? See which sectors have broken out from their weekly

ranges to the upside or to the downside by scanning for 2-Up and 2-Down on the weekly time
frame with the TheStrat Patterns scanner.

After you have gained some sense of what the markets are doing you can continue with your
stock selection. Out of the weaker sectors, depending on your own strategy, you can pick the
weakest holdings to take a short position in, or out of those most undervalued – ones to get on the
long side of. You can copy and paste the symbols that are the result from your scanning process
into a different Watch list or you can add columns to the same window so they can give you
additional information about your picks.

Let’s say that you’ve come to the conclusion that the Chinese stocks, represented by the FXI ETF,
are showing some weakness. Copy and paste the list of Chinese stock symbols in a new Watch list
and go through the same process for them in order to find the weakest of the weak or the most

undervalued out of the undervalued names. One way to do it is by using TheStrat Patterns multi-
column w/FTC Hist scanner. Go and scan for any names that are red for the month and in a 2-

Down scenario for the day.

At the time of running the scan for our example, we got the following results:

We pick a familiar symbol and on the chart, with the help of our Paintbar FTC Indicator, we see
that indeed it is a good short candidate at the moment, because it exhibits Full time frame
continuity to the down side, which means that the aggregate result of all the market participants’
actions in that symbol is that the price of the stock is falling on every time frame.

What is left for us to do is to explain how the second part of our process is done
– the Trade execution.
For a more precise entry of our trade, we can use the Intraday indicators and scanners. We can do
that for our best individual stock pick by waiting for a red 60 minute candle to provide tailwinds
for our entry.

And by using our Paintbar TheStrat Patterns indicator on a lower time frame to better spot a 2-
Down scenario actionable signal, which in our example image is shown as Pattern number 3 that
is marked above the candle.

Or we can scan for the best entry setup out of the list of already narrowed down number of
symbols with our TheStrat Patterns multi-column w/FTC Intraday scanner. Sometimes that could
be more beneficial because it would bring to our attention more possible trades which otherwise
would have been left out of our selection process.

That is just one example of a structured trading approach using Hammer’s Pro The Strat capabilities.
You can experiment and adjust the available tools as you see fit. Best of luck with The Strat!