How to Find the Best Trending Stocks for Swing Trading with FinViz. Traders are always on the lookout for the best rending stocks on a daily and weekly basis. Trending stocks are great for both swing traders and day traders. If you can identify a trending stock you can jump on for the ride! Careful though, you don’t want to pick something up at the end of its trend. One way to identify the hot stocks that will move the best is to use a stock screener. We did an amazing introduction to our favorite three stock screeners.
This is a great place to start before moving forward, so you can choose which screener is best for your trading needs.
The Best Stock Screeners Introduction
Our favorite stock screeners for finding the best trending stocks are:
- FinViz
- StockFetchr
- ChartMill
You can watch the YouTube video below for a full explanation and review of each.
In the next section we are going to take a look at just FinViz, and how to screen for the best trending stocks.
The Best Trending Stocks Screener
Financial visualizations or FinViz for short has a very powerful and free stock screener.
You can visit the FinViz screener by clicking here >
There are three different filter categories to use:
- Descriptive
- Fundamental
- Technical
There are a few different ways you can use the screener to find trending stocks, we are going to explain them all in this post!
We like to look at stocks that are trending in the upside direction for the continuation of the trend so this breakdown is going to be for bullish sentiment. We’ll break down a bearish sentiment screener as well. Our favorite weekly screener for swing trading to find the best trending stocks is:
Descriptive:
- Market cap (over 2 BN)
- Optionable
- Current Volume > 1M
Technical:
- 20-Day Simple Moving Average: Price 10% above SMA
Optional:
-Pattern (There is a pattern selection tool in the screener where traders can screen based on the chart pattern in that market).
Based on those results we found 17 companies, depending on the overall market’s strength and how the economy is doing we could either have a lot of names like these or very few random ones. Always watch the broader market (S&P 500, Nasdaq, Dow, and the large contributing names to those indices, such as Apple, Facebook, Amazon, etc).
You can take a look at the names and see that not a lot are not that well known. From this we can clearly see that the broader market is struggling right now. The next step to identify the opportunities is by going through the charts!
FinViz allows you to easily siphon through the charts you have screened by selecting “charts” in the tab selection under the screening criteria.
Based on what we screened, there are a few names that look interesting. Mainly energy names. The current market conditions are such that energy is doing well, while the overall market is not.
The other name that comes out on the list is ET (Energy Transfer LP)
Based on this information you can look for trades that will follow the trend and continue the upside structure based on pullbacks or breakouts.
If you want to look for bearish names that are showing signs of weakness, all you need to change is the technical 20-Day Simple moving average: 10% or 20% below.
The 20-day moving average is a good barometer for the overall strength and trend in stock, if we close and hold below, then the bearish momentum could really take over.
There is more than one way to find good names to swing trade using the screener! You can find weak, beaten-down names that have the potential to come back. Especially larger names that didn’t make the list.
The only thing you’ll have to change in the search criteria is:
Technical:
- 20-Day Simple Moving Average: Price crossed above 20 DMA
In this case, we get 101 stocks that have met all of our criteria. With which you can do 2 things, go through all of the names and find out which ones look the best. Or you can filter for higher liquidity, which would mean increasing the volume criteria. Increase volume threshold to at least $2M. Or even $5M if there are still too many! With 2M we have 61 names that are crossing back above the 20 moving average to show us bullish strength.
Going through the list, there are a lot of names that pop out. A lot of charts that look good as well.
ATVI (Activision Blizzard)
BAM (Brookfield Asset Management)
NKE (Nike Inc)
There are a lot more if you want to see names that really got beat down. Change the filter in the technicals to: 10-20% under the Simple Moving Average. To find stocks that have really gotten hurt and watch them for their revival.
There are other ways to screen as well. You can screen for growth names, which typically have large movements and fast. You can also screen for bearish swing trades
Screening for Growth stocks
A growth stock is a stock that has rapid revenue and rapid earnings growth. We would typically qualify a growth stock as one that grows quarter over quarter at least 20%. Meaning its sales/revenue growth is as such and so is earnings per share growth.
In FinViz you will look for the following screens.
Descriptive:
- Market cap (over 2 BN)
- Optionable
- Current Volume > 2M
Fundamental:
- EPS growth qtr over qtr: Over 20% (can be changed to over 25,30 etc)
- Sales growth qtr over qtr: Over 20% (Can be changed to over 25,30 etc)
If you want to identify consistent growth companies, you want to see the history of growth.
- EPS growth past 5-years: 20%
- Sales growth past 5-years: 20%
Having screened only for the first part (EPS and Sales Growth), we’ve come up with 130 names. This list came to be further minimized, by increasing the volume threshold or adding the EPS and sales growth over the last 5-years.
Increasing volume to 5M we get 57 names.
Keeping the volume at 2M but adding the last 5-years of growth we get 15 names.
Some of the names that popped out were:
FB (Facebook Inc.)
APPS (Digital Turbine Inc.)
ETSY (Etsy Inc.)
Important note when using FinViz Screen
Now it’s important to note at this point that you will very rarely find any results with all of these filters in FinViz Screen. And you are able to find more FinViz features on the dashboard.
You will need to adjust the criteria on a weekly basis to find at least 5 to 10 stocks, but not too many. Keep adding filters until you get to a list of no more than 10 stocks.
These can be put together into a weekly watch list called “weekly trending stocks”.
But how do you know what trading strategy to use or when?
This is what our Swing Trader education package and daily stock market newsletters are for.
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FinViz Stock Market Fundamental Analysis
FinViz is a reliable stock screening platform that has a plethora of different tools. They’ve got tools for all market participants from investors to traders. Fundamental analysis components, technical analysis components, a combination, and more. You can use FinViz to plug in the criteria you are looking for in a stock. This is an extremely sought-after product considering what is happening in the stock market right now. Stock markets are crashing from all-time highs, many of which have officially entered a bear market. Finviz allows all market participants to look for value in assets and stocks. The stock screener can give you strong investment ideas to buy this downside when it starts to show signs of recovery for long-term investments. A lot of stocks have been overvalued for some time and they still remain at those levels even with a lot of this downside. A lot of people are waiting to start buying into the stock market and they can do so efficiently with the use of Finviz. Find undervalued stocks in April 2020 or even later on Finviz for potential long-term plays with the use of the fundamental tool. For those traders out there you can find short opportunities on Finviz using the technical analysis tool into March 2020.
The Best Trending Stocks Screener – Conclusion
Using screeners you can identify a hot list of the best trending stocks on a weekly basis.
Once you narrow down your focus to just a few, you can really focus on getting the timing right throughout the week.
Weekends are when you should do all your analysis and planning. During the week you are focusing on finding the right timing to qualify a trade and execute your entry.
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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 for your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.
