How to Use A Stock Screener For Technical Analysis?

13 minutes read

Using a stock screener for technical analysis involves specifying certain criteria to filter and screen stocks that meet your trading strategy. First, you need to identify the technical indicators that you want to analyze, such as moving averages, relative strength index (RSI), or MACD. Then, you can input these indicators into the stock screener to search for stocks that exhibit specific technical patterns or signals.


Once you have inputted your desired criteria, the stock screener will generate a list of stocks that meet your requirements. You can then further analyze these stocks to make informed trading decisions. It is important to regularly update and adjust your criteria to adapt to changing market conditions and trends.


Overall, using a stock screener for technical analysis can help you efficiently identify potential trading opportunities based on specific technical indicators and patterns. It can also save you time by quickly narrowing down the universe of stocks to focus on those that best fit your trading strategy.

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How to customize your stock screener for specific trading strategies?

  1. Identify your specific trading strategy: Before customizing your stock screener, it is important to clearly define your trading strategy. Are you looking for growth stocks, value stocks, dividend-paying stocks, or stocks with specific technical indicators?
  2. Select relevant screening criteria: Based on your trading strategy, choose the screening criteria that are most relevant to you. For example, if you are looking for value stocks, you may want to screen for low price-to-earnings ratios or high dividend yields. If you are looking for growth stocks, you may want to screen for high revenue growth rates or high earnings per share growth rates.
  3. Customize screening parameters: Once you have identified the screening criteria that are important for your trading strategy, customize your stock screener by inputting these parameters. This may involve setting specific ranges for criteria such as market capitalization, price-to-earnings ratios, dividend yields, revenue growth rates, or earnings per share growth rates.
  4. Save your custom screener: Most stock screeners allow you to save your custom screening criteria so that you can easily access and run the screen again in the future. By saving your custom screener, you can quickly identify potential trading opportunities that meet your specific criteria.
  5. Monitor and review results: After running your custom screener, review the results to identify potential trading opportunities that align with your trading strategy. It is important to continually monitor and review the results of your stock screener to stay on top of changing market conditions and to adjust your screening criteria accordingly.


What are some popular stock screeners for technical analysis?

  1. Finviz
  2. TradingView
  3. StockCharts.com
  4. MarketSmith
  5. TC2000
  6. ChartMill
  7. Ziggma
  8. Scanz
  9. Stock Rover
  10. MetaStock


What factors should I consider when selecting a stock screener?

When selecting a stock screener, it is important to consider the following factors:

  1. User-friendliness: Choose a stock screener that is easy to use and navigate, with a clean interface and intuitive controls.
  2. Customization options: Look for a stock screener that allows you to customize your criteria and filters to match your specific investment goals and trading strategy.
  3. Data coverage: Make sure the stock screener provides access to a wide range of data sources and includes comprehensive information on stocks, sectors, and markets.
  4. Real-time data: If you need real-time data for your trading or investment decisions, ensure that the stock screener offers this feature.
  5. Technical analysis tools: Consider whether the stock screener includes technical analysis tools such as charting, indicators, and analytics to help you make informed decisions.
  6. Screening capabilities: Evaluate the stock screener's screening capabilities, including the ability to screen for fundamental, technical, and other relevant criteria.
  7. Price: Consider the cost of the stock screener and whether it fits within your budget. Some stock screeners are free, while others require a subscription or one-time purchase.
  8. Customer support: Choose a stock screener that offers reliable customer support in case you encounter any issues or need assistance.
  9. Reviews and recommendations: Look for reviews and recommendations from other users, experts, and industry publications to help you make an informed decision.


How to incorporate risk management techniques in stock screening with a stock screener?

Incorporating risk management techniques in stock screening with a stock screener can help investors make informed decisions and minimize their exposure to potential risks. Here are some ways to incorporate risk management techniques in stock screening:

  1. Define your risk tolerance: Before using a stock screener, it is important to define your risk tolerance. This will help you identify the level of risk you are comfortable with and guide your stock screening criteria.
  2. Use risk metrics: Many stock screeners offer a range of risk metrics that can help you assess the risk profile of a particular stock. Some common risk metrics include beta, standard deviation, and Sharpe ratio. Incorporating these metrics in your stock screening process can help you identify stocks that align with your risk tolerance.
  3. Consider diversification: Diversifying your investment portfolio is a key risk management technique. Make sure to use the stock screener to identify stocks from different industries and sectors to reduce concentration risk.
  4. Set stop-loss orders: When using a stock screener to identify potential investment opportunities, consider setting stop-loss orders to limit potential losses. This will help you manage downside risk and protect your capital.
  5. Keep track of fundamental factors: In addition to technical analysis, pay attention to fundamental factors such as earnings growth, debt levels, and cash flow. Using a stock screener that allows you to screen for these fundamental factors can help you mitigate risks associated with poor financial health.
  6. Monitor your portfolio: Once you have identified and invested in stocks using a stock screener, it is important to regularly monitor your portfolio to assess performance and manage any emerging risks. Consider using the stock screener to track key performance indicators and adjust your investment strategy as needed.


By incorporating these risk management techniques in stock screening with a stock screener, investors can make more informed decisions and better navigate the complexities of the stock market.


What is the importance of volume and liquidity in stock screening?

Volume and liquidity are important factors in stock screening as they can provide insights into the market activity and the ease with which a stock can be bought or sold.


Volume refers to the number of shares traded in a particular stock within a specific time period, such as a day or week. High volume indicates that there is considerable interest in the stock, which can lead to more accurate price movements and increased opportunities for traders. Low volume, on the other hand, can result in higher volatility and wider bid-ask spreads, making it more difficult to execute trades at desired prices.


Liquidity, on the other hand, refers to how easily a stock can be bought or sold without significantly impacting its price. Stocks with high liquidity tend to have tight bid-ask spreads and minimal price slippage, making them more attractive to traders. In contrast, stocks with low liquidity may have wider spreads and experience greater price fluctuations, leading to higher trading costs and potential difficulties in exiting positions.


In stock screening, considering volume and liquidity helps investors identify stocks that are actively traded and have sufficient market interest, which can lead to smoother trading experiences and better investment outcomes. By incorporating these factors into their analysis, investors can make more informed decisions and avoid potential pitfalls associated with illiquid stocks.


How to monitor and track stocks using a stock screener?

Using a stock screener can make it easier to monitor and track stocks based on specific criteria and filters. Here are the steps to monitor and track stocks using a stock screener:

  1. Choose a stock screener: There are many stock screeners available online, such as Yahoo Finance, Finviz, and StockFetcher. Choose one that best fits your needs and is user-friendly.
  2. Define criteria: Decide on the criteria you want to use to filter stocks. This could include market capitalization, price-to-earnings ratio, dividend yield, or any other factors that are important to you.
  3. Use filters: Input your criteria into the stock screener and apply filters to generate a list of stocks that meet your requirements.
  4. Monitor results: Review the list of stocks that meet your criteria and track their performance over time. Keep an eye on any changes in the stock price, trading volume, and other relevant metrics.
  5. Set up alerts: Many stock screeners allow you to set up alerts for specific criteria or changes in stock prices. This can help you stay informed of any significant developments in the stocks you are monitoring.
  6. Adjust criteria as needed: Periodically review and adjust your criteria as needed based on market conditions, changes in your investment goals, or any other relevant factors.


By following these steps, you can effectively monitor and track stocks using a stock screener to help you make informed investment decisions.

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