The SignalFlow Screening Method
A four-stage process we teach in every workshop — from broad market scan to a maintained watchlist you review each week.
1 · Volume Filter
Remove illiquid names and flag unusual participation before studying price.
2 · Structure Map
Draw support, resistance, and trend context on daily and weekly charts.
3 · Setup Check
Confirm trend alignment, risk-reward ratio, and a defined invalidation level.
Stage 1: Volume filter
Every screen begins with participation, not price patterns. We set a minimum average daily volume threshold based on the market cap tier and current market breadth. Names below the threshold are excluded regardless of how clean the chart looks.
We also flag volume spikes — days where participation exceeds 150% of the 20-day average. A spike near resistance tells a different story than a spike at support. This stage typically reduces a sector list of 40–60 names to 15–20 candidates.
Stage 2: Structure map
For each remaining name, we mark horizontal support and resistance from areas where price reversed multiple times, not from single-day wicks. Weekly structure takes priority over daily noise.
We draw trend channels only when at least three touch points exist. A name without clear structure stays off the watchlist until price develops a readable range or breakout base.
Stage 3: Setup check
A name enters the watchlist only when daily and weekly trends agree, price sits near a logical entry zone (support hold or breakout retest), and the distance to invalidation allows a minimum 2:1 reward-to-risk ratio.
We document the invalidation level in writing — a specific price or structure break — before the name is added. Screening without this step creates lists full of "interesting" charts with no actionable plan.
Stage 4: Weekly maintenance
Each Sunday (or your chosen review day), revisit every watchlist name against three questions: Did structure change? Did volume confirm or contradict the thesis? Does the invalidation level still make sense?
Names that fail any check are removed immediately. New candidates from the ongoing scan replace them. The goal is a list of five to twelve names, not a growing archive of past ideas.
How this connects to our workshops
The Watchlist Screening Workshop walks you through all four stages on live market data in a single day. Market Scan Coaching revisits stages 1 and 4 weekly as conditions shift. Chart Review Sessions apply stages 2 and 3 to names you bring from your own list.