7-Layer Intelligence System

How ScanEdge Works

From raw institutional flow to actionable trade signals — here is exactly how the system finds, analyzes, and delivers high-conviction setups every trading day.

Layer 1

Flow Detection

Scanning institutional options activity

Every trading session, ScanEdge scans up to 1,600 unusual options trades from institutional-grade data feeds. These are large, unusual trades placed by hedge funds, banks, and professional traders — not retail noise. We look for trades with significant premium ($50K+), strong directional conviction, and repeat activity on the same ticker.

Up to 1,600 raw flow alerts scanned per session
Filters out ETFs, indexes, and macro noise automatically
Focuses on single-name stocks with real institutional interest
Layer 2

Quality Filtering

Separating signal from noise

Raw flow is filtered through strict quality criteria. Only names with strong bullish conviction (68%+), repeat unusual trades (2+), and meaningful premium pass through. This eliminates one-off trades, low-conviction flow, and names that don't meet the quality bar.

Minimum 68% bullish ratio required
At least 2 separate unusual trades per symbol
Minimum $50,000 total premium
14-60 day expiration window for conviction
Layer 3

Technical Confirmation

Price action validates the flow

Each signal is enriched with 3 months of price history. The system computes moving averages, RSI, support and resistance levels, volume trends, and overall trend direction. Bullish flow in an uptrend above key moving averages scores much higher than flow in a downtrend — because price action confirms institutional intent.

20-day and 50-day moving average analysis
RSI (14-period) for overbought/oversold detection
Support and resistance from 20-day highs and lows
Volume ratio: is today's volume above or below average?
Trend classification: Strong Uptrend → Strong Downtrend
Layer 4

Risk Screening

Avoiding landmines

Before any signal reaches you, it passes through multiple risk checks. Stocks with earnings within 3 days are auto-flagged as high risk. If the broad market (SPY) is weak, all long signals are penalized. Recent SEC filings and press releases that could cause volatility are detected and factored in.

Earnings calendar auto-detection (3-day window)
SPY correlation check — penalizes longs when market is weak
SEC filing monitoring (8-K, 10-Q, Form 4)
Press release detection for material news
Layer 5

Insider Trading Detection

Following the smart money inside the company

The system checks SEC Form 4 filings to detect when company insiders — CEOs, CFOs, directors — are buying their own stock. When insider buying aligns with unusual call flow from institutions, that is one of the highest-conviction signals in trading. Heavy insider activity can boost a signal's score significantly.

SEC EDGAR Form 4 filings checked for each symbol
14-day lookback window for recent insider activity
3+ filings = heavy insider activity (major score boost)
Insider + institutional flow = highest conviction setup
Layer 6

Affordability Classification

Right instrument for your account

Not every signal should be traded with options. The system estimates actual contract costs from the flow data and classifies each signal as an Options Play (affordable calls under $1,000) or a Stock Play (calls too expensive, buy shares instead). This ensures you never overpay for a position.

Contract cost estimated from actual flow data
Under $500/contract = affordable calls recommended
$500-$1,000 = calls possible but pricey
Over $1,000/contract = shares recommended instead
Dashboard splits signals into Options Plays and Stock Plays
Layer 7

Post-Open Verification

Confirming before you enter

At 10:15 AM ET — 45 minutes after the market opens — ScanEdge checks each morning signal against live price data. Did the stock hold above its opening price? Did it break a key level? Is SPY green or red? You receive a GO, ABORT, or WAIT status for each signal via email and SMS, so you know exactly whether to enter.

Live price check at 10:15 AM ET for each signal
GO = confirmed, enter the trade
ABORT = failed, do not enter
WAIT = inconclusive, keep watching
SPY market context included in every check

Your Daily Schedule

9:30 PM ET
Night Before

Evening preview email — plan your watchlist for tomorrow.

9:00 AM ET
Pre-Market

Morning final scan with specific contract recommendations. Email + SMS.

10:15 AM ET
Confirmation

GO or ABORT for each signal based on live price action. Email + SMS.

11:00 AM ET
Rescan #1

New signals that appeared after the open. Only alerts if something new is found.

12:30 PM ET
Rescan #2

Midday check for fresh institutional flow.

2:00 PM ET
Rescan #3

Afternoon scan — catches late-day institutional positioning.

3:15 PM ET
Power Hour

Final scan before close — power hour flow often signals next-day moves.

What You Get

Email + SMS Alerts

Instant notifications with specific contract recommendations and entry plans.

AI Trading Copilot

Ask EdgeIQ anything about today's signals, confirmations, or any stock.

The Edge Report

Full detailed report with technicals, option examples, and SEC filings.

Performance Analytics

Track your win rate, P&L curve, best setups, and improve over time.

Position Calculator

Exact share and contract quantities based on your account size.

Stock Lookup

Search any ticker for live price, chart, fundamentals, and news.

DISCLAIMER: ScanEdge is for informational and educational purposes only and does not constitute financial advice, investment advice, or trading advice. Trading stocks and options involves substantial risk of loss and is not suitable for every investor. You may lose more than your original investment. Past performance is not indicative of future results. ScanEdge is not a registered broker-dealer or investment adviser. You are solely responsible for your own investment decisions. Trade at your own risk.