How to Read ScanEdge Setups
Everything you need to understand how ScanEdge AI works, what the signals mean, and how to use the platform effectively.
ScanEdge AI is for informational and educational purposes only. It does not constitute financial advice. You are solely responsible for your own investment decisions.
What is ScanEdge AI?
ScanEdge AI is an AI-powered options flow intelligence platform. It scans institutional trading activity - large, unusual options trades placed by hedge funds and professional traders - and delivers structured analysis frameworks to your email, phone, and dashboard every trading day.
The system uses two data sources (flow alerts and a contract screener), applies 7 layers of analysis including technical confirmation, momentum scoring, risk screening, and insider detection, then presents the top setups with contract examples detected in the institutional flow.
What ScanEdge Is Not
ScanEdge is not a broker, investment adviser, or automated trading system. It does not place trades for you, manage your account, or guarantee profits. It provides educational market research and structured analysis frameworks so you can make your own informed decisions.
No signal, label, or analysis from ScanEdge should be interpreted as a personal recommendation to buy or sell any security. All trading involves substantial risk of loss.
Your Daily Schedule
Evening Preview
Preview of tomorrow's setups based on after-hours institutional flow.
Morning Scan
The main daily scan. Top institutional flow setups scored across 7 analysis layers.
Post-Open Validation
Each morning setup is checked against live price data. Validated setups show price holding above key levels.
4 Intraday Rescans
Catch new institutional flow throughout the trading day at 11 AM, 12:30 PM, 2 PM, and 3:15 PM ET.
Performance Tracker
System tracks outcomes of previous setups. Updates performance analytics.
Momentum Labels
Every setup gets a momentum label based on RSI (relative strength), 5-day price movement, and price position within its 20-day range. Momentum labels are one of the most important indicators of setup quality.
RSI 80+, 5-day change 10%+, price near top of range. Historical testing has shown stronger outcomes in this category, though results vary and are not guaranteed.
RSI 60+, 5-day change 3%+, price in upper range. Solid momentum with room to run. Worth reviewing after validation.
Meets base criteria but momentum is not yet confirmed. The setup is forming. Monitor only.
Weak momentum. Shown in compact format in emails. For monitoring only.
Setups with very weak momentum (RSI below 50, price position below 0.4, or 5-day change below -5%) are filtered out entirely because historical testing showed materially weaker outcomes at these levels.
Post-Open Validation
At 10:15 AM ET - 45 minutes after the market opens - ScanEdge checks each morning setup against live price data. Post-open validation is one of the most important risk-control steps.
Key principle: Do not consider a setup complete until the post-open validation has been reviewed. The first 45 minutes can be especially volatile and prone to false moves.
Example Setup Card
Options Setup - Confirmation Required
CONTRACT DETECTED IN FLOW
NVDA $220 Call expiring 2026-05-16
This is a reference example. The contract shown is the actual contract observed in institutional flow data.
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DISCLAIMER: ScanEdge AI 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 AI is not a registered broker-dealer or investment adviser. You are solely responsible for your own investment decisions. Trade at your own risk.