Finviz is a powerful stock screener that is available online, for free or on a subscription basis. It can be found here! The website is not limited to their stock screener as they have many other functions. Functions including news, sector performance analysis and stock maps that display timeframe returns of stocks grouped in sectors. That is all great, but we’re here to go through the functions of the stock screener and how one may use it to take advantage of the markets. Here is a screencap of the home page.
How to use Finviz-The Basics.
Its no surprise that Finviz is a stock screening website, but what are some of the basic features it offers? The name is a short form for “Financial Visualization”. The platform offers a multitude of financial analysis that helps traders and investors alike zero in on potential trades based on the qualifying criteria that are put into the screener. The platform has three main categories in which you can place your criteria to find the exact set you are interested in, to trade. The screener is also free, so anyone can use the platform.
The three main criteria are Descriptive, Fundamental and Technical. You also have the possibility of combining all three categories in “All” to really zero in on your stock target. First things first, select the “Screener” button at the top of the tab page.
This section can be considered the most basic out of the three criteria available. This section contains criteria such as the market capitalization of the stock, which enables you to differentiate between large cap and small cap. Earnings dates for all those earnings options traders, the industry, sector, optionability, volume and more!
The fundamental description is for all of the ratio-loving fundamental analysts. This is where you can really split up stocks by P/E ratios, Gross margin, debt/equity, and payout ratio just to name a few. A great tool for those who are looking to add some new stocks to their portfolios based on dividend payouts or potential of growth based on ratio analysis.
The technical section is what a lot of the TRADEPRO’s would be interested in. This is where you can really segregate specific stocks based on their current technicals. For example, if a stock is trading below its 200-day moving average and is currently in a downward flag pattern. Anything from candlestick formations to a recent gap. There are many technicals that you could look at in Finviz. Not to mention, under “All”, you can combine all of the three criteria into one superpower. Descriptive, Fundamental and Technical all in one.
The benefits of Finviz
The benefits of using Finviz are simple to describe, they help you narrow down stocks based on YOUR criteria with the touch of a button. Under the basic criteria section, there are more tabs, which read “Overview”, “Valuation” all the way down to “Stats”, emphasized below. We’ve selected the “Financial” tab, which lays out everything financial that you may be interetsed in. Such as the dividend, market cap and debt to equity for example. Once you have put in your preliminary criteria in the section above, you can further narrow down your search using these secondary tabs to select your stock!
Not to mention you can combine all three areas of criteria with the “All” selection. The majority of this section is free, but there are some criteria that fall under the Finviz Elite package. The Elite subscription would be worth the investment. Finviz Elite is $24.96 monthly and has several features that would benefit investors and traders alike, such as real-time data, backtesting options, alerts and best of all advanced screener options.
How to use Finviz-Step by Step
Let’s do an example using the Technical tab on Finviz. If you want to learn more about finding stocks that you can swing trend trade check out this link!
Step 1: Lay out your criteria
In this situation, we’ve used four total criteria under the “Technical” tab. The 200-day moving average, RSI, Pattern, and Candlestick.
We also snuck in a “Descriptive” filter, Market Cap-Large $10bln to $200bln. Just to make sure we’re getting large companies.
200-day moving average- Price 10% below SMA
RSI- Not Overbought (<60)
Using these criteria, Finviz came up with one stock, here it is on a technical chart. Continental Resources Inc. (CLR) An oil and gas company currently trading around $46.50.
Step 2: Technical Analysis
The second part of the process is doing the technicals yourself! Make sure that what Finviz spits out meets your own technical standards. Finviz has a good charting in which you can do your analysis. Another option is using Trading View for your technical analysis. Is there a strong resistance that supports your current short idea? What is volume doing on the swings higher and lower? Do Fibonacci levels confirm a resistance point? There is a nearly endless list of technicals you can go through to confirm your trade idea. As per the image below, we like to do our technical analysis on Trading View.
Step 3: Trade
The final step is trading! You’ve got a few options, trading the stock, investing in the stock in your portfolio or trading the stock with options! All viable options. Trading the stock short term may require margin trading for a larger position. If you invest in the stock in your portfolio you are concerned with its future gains and potential dividends rather than the capital needed to purchase the shares. Finally, options requires less capital, select risk and potential for larger returns. Want to learn more about options? Check out our Swing Trading package!
Conclusion to Finviz
Finviz is a great screener for finding your favorite stocks no matter the purpose! Trading or investing! The nearly endless amount of criteria to choose from in the three general tabs, Technical, Fundamental and Descriptive provide so much possibility and variability in screening stocks!
The most important thing that you can do now to cut down your learning curve is to find a mentor and join a community of professional traders.
If you want to join us in our live day trading room and trade alongside a community of professionals, check out our ELITE package here
Prefer to trade more passively? Check out our newsletter, trade ideas and live analysis in the Swing Trader package here.
The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.