The Watchlist Architect: Unpacking Ross Cameron’s Scanner Criteria

The Foundation of the Trade: Building a High-Probability Watchlist

For a momentum day trader like Ross Cameron, the trading day begins not with a trade, but with the meticulous construction of a watchlist. This is the foundational act, the process of sifting through thousands of stocks to identify the handful that possess the specific characteristics of a potential high-velocity mover. The primary tool for this important task is the stock scanner, a sophisticated piece of software that can be programmed to filter the market based on a wide range of criteria. Cameron’s genius lies not just in his ability to trade, but in his deep understanding of how to configure his scanners to consistently unearth the gems from the rubble.

The purpose of the scanner is to automate the process of finding stocks that are “in play.” These are stocks that are exhibiting unusual activity, such as a significant pre-market gap, high relative volume, or a recent news catalyst. By focusing on these stocks, the trader can dramatically increase their odds of finding a profitable trading opportunity.

The Psychology of the Scan: Filtering for Actionable Intelligence

The scanner is more than just a filter; it is a tool for translating a trading philosophy into a set of objective rules. The psychology behind Cameron’s scanning methodology is to focus on stocks that are already demonstrating signs of institutional and retail interest. He is not trying to predict which stocks will move; he is looking for stocks that are already moving. This is a important distinction. By focusing on stocks that are already in play, he is aligning himself with the existing market momentum, rather than trying to fight against it.

The scanner settings are a direct reflection of his trading strategy. Each criterion is designed to identify a specific characteristic of a high-probability momentum stock. The goal is to create a watchlist that is small enough to be manageable, yet diverse enough to provide a steady stream of trading opportunities throughout the day.

The Core Scanner Settings: Cameron’s “5 Pillars”

Ross Cameron’s scanning methodology is often referred to as the “5 Pillars.” These are the five core criteria that form the basis of his primary pre-market and intraday scans.

1. Price: The scanner is typically configured to look for stocks priced between $2 and $10. This price range is the sweet spot for small-cap momentum trading, as it is accessible to a wide range of retail traders and offers the potential for significant percentage gains.
2. Float: A low float is a non-negotiable criterion. The scanner is set to identify stocks with a float of under 20 million shares. This is the key ingredient for explosive price moves, as a limited supply of shares can lead to a dramatic price increase when demand surges.
3. Volume: The scanner is configured to look for stocks with a minimum pre-market volume, often 100,000 shares or more. This ensures that there is sufficient liquidity to enter and exit trades without significant slippage.
4. Relative Volume: This is one of the most important criteria. The scanner is set to identify stocks that are trading at a relative volume of at least 2:1. This means that the stock is trading at twice its normal volume for that time of day. High relative volume is a clear indication that the stock is attracting unusual attention.
5. Change from the Close: For his pre-market gapper scan, Cameron is looking for stocks that are up at least 4% from the previous day’s close. This is the initial sign that a stock has the potential to be a Gap-and-Go candidate.

Intraday Scans: Adapting to the Market in Real-Time

In addition to his pre-market scans, Cameron utilizes a variety of intraday scans to identify opportunities that emerge after the market has opened. These scans are designed to capture stocks that are breaking out to new highs, experiencing a surge in volume, or forming one of his signature chart patterns.

• High-of-Day Momentum Scan: This scan is designed to identify stocks that are breaking out to a new intraday high on high relative volume. This is a classic momentum trading setup.
• Reversal Scan: This scan looks for stocks that have been in a strong downtrend and are showing signs of a potential reversal, such as a bullish candlestick pattern or a surge in buying volume.
• Halt Scan: This scan alerts the trader to stocks that have been halted by the exchange due to excessive volatility. A stock that is halted on a circuit breaker is often a sign of extreme momentum and can present a trading opportunity when it resumes trading.

Conclusion: The Scanner as a Strategic Weapon

For Ross Cameron, the stock scanner is not just a tool; it is a strategic weapon. It is the engine that drives his entire trading operation, providing him with a constant stream of high-probability trading ideas. By understanding the specific criteria that he uses to filter the market, the experienced trader can gain a valuable insight into the mind of a master momentum trader. The key takeaway is that a well-configured scanner is not about finding the “perfect” stock; it is about creating a manageable list of stocks that have the potential to deliver the explosive moves that are the lifeblood of the momentum trader.