How to Scan for Chart Patterns Across the Market
Step-by-step tutorial: use Diplyzer to scan for chart patterns across the S&P 500, filter for momentum confirmation, and analyze technical structure.
Step-by-step tutorial: use Diplyzer to scan for chart patterns across the S&P 500, filter for momentum confirmation, and analyze technical structure.
Finding a chart pattern is only the beginning. The real edge comes from efficiently scanning a universe of hundreds of stocks, filtering for momentum confirmation, and evaluating multi-factor data confluence — all before the market opens.
This tutorial walks you through the exact workflow.
By the end of this tutorial, you will be able to:
Start by deciding what type of setup you are looking for. Different patterns work better in different market environments:
For this tutorial, we'll scan for Bull Flags across the S&P 500 on the daily timeframe.
"Scan S&P 500 stocks with positive free cash flow and market cap above $10B for Bull Flag patterns on the daily chart in the last 3 months. Sort results by similarity score from highest to lowest."
Diplyzer will return a list of matching stocks with their similarity confidence scores and the date range of the pattern.
A chart pattern alone is not enough. You want momentum confirming your directional thesis:
"From those Bull Flag results, which ones have: an RSI below 60 (not yet overbought), and a MACD histogram that turned positive in the last 5 trading days?"
This filter removes setups where momentum is already extended (RSI above 70) or where the MACD isn't confirming bullish pressure. You'll typically narrow the list from 20-30 results to 5-8 high-quality setups.
Even the best individual stock setup can fail in a hostile market environment:
"What is the current RSI and MACD reading on the SPY (S&P 500 ETF) on the daily chart? Is the broader market in an uptrend? What is the current VIX level?"
If the market is:
Pick the top 2-3 candidates from your filtered list and request a complete analysis:
"Give me the full technical analysis for [ticker]. Show the chart with the Bull Flag highlighted, the RSI, MACD, and Bollinger Bands. Where is the breakout level, the measured move projection, and the key historical support level?"
Look for:
When conducting technical research, verify there are no scheduled catalysts that could override the technical setup:
"When does [ticker] report earnings next? Are there any other upcoming events — dividend dates, analyst days, or expected regulatory decisions — in the next 30 days?"
If earnings are within 2-3 weeks: The technical pattern may be superseded by the binary earnings volatility event.
If the calendar is clear: The technical chart structure remains the primary factor.
The final check — volume:
"Show me the volume bars on [ticker]'s chart alongside the Bull Flag pattern. Was the flagpole formed on above-average volume? Is the flag consolidation occurring on declining volume (healthy)?"
Ideal Bull Flag characteristics:
Once you're comfortable with the workflow, compress it into a single comprehensive request:
"Scan S&P 500 Technology & Industrial stocks ($10B+ market cap) for Bull Flag patterns in the last 3 months, daily chart. Filter for: RSI below 60, MACD histogram positive. From the top matches, give me the full technical breakdown of the highest-scoring candidate: chart with pattern highlighted, RSI, MACD, Bollinger Bands, breakout level, measured move projection, key support levels, and the next earnings date."
Scanning for reversal opportunities:
"Scan Nasdaq 100 Tech stocks ($10B+ market cap) for Inverse Head and Shoulders patterns that have completed but haven't broken out above the neckline yet. Which have RSI in the 40-55 range?"
Scanning for continuation plays in crypto:
"Scan the top 20 cryptocurrencies by market cap for Ascending Triangle patterns on the 4-hour chart. Which are approaching the triangle apex and showing bullish momentum?"
Scanning for value with technical timing:
"Find S&P 500 stocks with P/E ratios below their sector median AND showing a Cup and Handle or Double Bottom pattern on the daily chart."