How to Use the Breakout Pressure Scanner
The Breakout Pressure Scanner identifies stocks where hidden buying absorption is occurring at key technical levels, suggesting institutional accumulation before a potential breakout move. This tutorial explains what absorption is, how the scanner detects it, and how to combine this signal with cash-secured put selection for higher-conviction wheel strategy entries.
Absorption occurs when a large buyer wants to acquire a significant position without pushing the price up — they quietly absorb all selling at a specific price level, preventing the stock from declining while building their position. This activity leaves detectable fingerprints in the market microstructure: declining volume on selling waves at support, tight trading ranges despite elevated activity, and subtle bid strengthening visible in Level 2 data. The Breakout Pressure Scanner quantifies these microstructure signals into an Absorption Score from zero to one hundred for every stock in its coverage universe.
Stocks scoring above seventy on the Absorption Score with a nearby technical support level are the highest-conviction setups. For wheel strategy traders, this creates an ideal cash-secured put entry scenario: sell a put at or just below the support level showing absorption, collecting premium while benefiting from the probability that institutional buying will defend that level through your expiration. If absorption is real and the support holds, your put expires worthless and you collect the full premium. Configure watchlist alerts in the scanner to receive notifications the moment a stock on your list crosses your minimum Absorption Score threshold.