Finviz Screener Setup: Settings for Finding Turnaround Stocks

In this lesson, I will share the optimal Finviz screener settings for identifying cheap stocks displaying classic turnaround patterns on charts. Understanding the right Finviz screener setup will help you identify stocks experiencing upward trend reversals.

Unlocking the Benefits of Using a Stock Screener

Navigating the stock market can be overwhelming, but a stock screener simplifies the process. Here’s how:

1. Customization at Your Fingertips: Stock screeners allow you to filter stocks based on your specific criteria, ensuring that you find investments tailored to your strategy. Whether you’re looking at dividend yields, market capitalization, or debt-to-equity ratios, you can easily narrow down your choices.
2. Comprehensive Financial Overviews: With dedicated tabs like ‘Overview’, ‘Valuation’, and ‘Stats’, stock screeners provide detailed financial information. This means you can quickly access crucial data, such as dividends and market cap, without the need for extensive research.
3. Advanced Search Capabilities: After setting your preliminary criteria, you can utilize secondary tabs to refine your search even further. This multi-layered approach enables you to select stocks that meet all your investment criteria.
4. Enhanced Features for Pro Users: For those willing to invest a little more, premium packages offer significant advantages. These often include real-time data, backtesting options, and advanced screener settings. Such features are particularly beneficial for both seasoned traders and investors looking for an edge.
5. Ease of Use: The intuitive design of stock screeners means you can combine various criteria effortlessly. This user-friendly interface allows for efficient stock selection, thereby saving time and increasing the accuracy of your investment decisions.

Why Consider Premium Options?

While many features are available for free, premium subscriptions offer additional tools that can significantly enhance your trading experience:

• Real-Time Data: Stay ahead with instantaneous updates.
• Backtesting Options: Test your strategies against historical data.
• Advanced Alerts: Set up notifications for specific stock movements.
• Expanded Screener Options: Dive deeper into advanced filters not available in basic plans.

Using a stock screener not only makes stock selection more manageable but also more precise. By leveraging various criteria and advanced features, you can optimize your investment strategies and make more informed decisions.

Before we begin, please make sure to sign up for a free Finviz account through me and let me know if you want to see more of the stock screens I use to find turnaround stocks for the GuerillaStockTrading Portfolio. It’s a crucial step for your Finviz screener setup.

Basic Features of Finviz’s Stock Screener

Finviz, short for “Financial Visualization,” is a comprehensive stock screening platform tailored for both traders and investors. Its primary purpose is to facilitate the identification of potential trades through a detailed analysis system. Here’s an overview of its core functions:

Key Criteria Categories

Finviz’s stock screener is structured around three main criteria categories:

1. Descriptive: This category focuses on general stock information such as market capitalization, dividend yield, and price performance.
2. Fundamental: These criteria emphasize financial health indicators like earnings per shareEarnings per share (EPS) is a fundamental financial metric that provides valuable insights into a company's profitability. This widely used indicator helps investors and analysts g... (EPS), price-to-earningsThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc... ratio (P/EThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc...), and return on equityReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl... (ROEReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl...).
3. Technical: This includes technical analysis indicators, such as moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a..., relative strength indexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ...), and chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement....

Combining Criteria

Users can also combine these categories into an “All” option, allowing for a more refined search that targets precise stocks meeting multiple criteria simultaneously.

Ease of Use

• Free Access: The basic screener tools are available at no cost, making it accessible to anyone interested in stock analysis.
• User Interface: The platform provides a straightforward interface. To start, simply click the “Screener” button at the top of the page to filter stocks based on your specific criteria.

Finviz’s stock screener’s blend of descriptive, fundamental, and technical filters, along with its user-friendly interface, makes it an indispensable tool for any investor aiming to navigate the complexities of the stock market.

Saving Finviz Screener Settings: A Step-by-Step Guide

Saving screener settings is a fantastic way to streamline your investing research. Here’s how you can save up to 50 different screener configurations within Finviz:

1. Log Into Your Account:
   • Begin by accessing your Finviz account. This feature is available to registered users, so ensure you’re logged in.
2. Create Your Screener:
   • Navigate to the screener section. You have the flexibility to adjust various filters like market cap, sector, performance, and more to refine your search.
3. Configure Your Preferences:
   • Once you’ve set up the desired criteria, take a moment to double-check that each filter aligns with your investment strategy.
4. Save Your Screener:
   • Look for the ‘Save’ option, usually located near the top of the screener page. Click on it to prompt a dialogue box.
5. Name and Confirm:
   • You’ll be prompted to enter a name for your screener. Choose something descriptive that identifies its specific criteria or purpose.
   • Confirm by selecting the ‘Save’ button.
6. Manage and Organize:
   • Access your saved screeners under the ‘My Screeners’ section within your account.
   • Here, you can organize, edit, or delete screeners as needed. Remember, you can keep up to 50 configurations active.

By saving your screener settings, you ensure quick access to your favorite filters, helping you make more efficient and informed decisions.

Finviz Screener Settings

First set Market Cap at greater than $300 million. Second, set Return On EquityReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl... at over 20%. Next, set Debt To Equity at under 1. Next set Performance at Quarter Down and then in the Performance 2 field, set as Week Up. Next set beta at over 1.5. Finally, set Average Volume at Over 500K. Your Finviz stock screener settings page should look like this:

Below we examine each Finviz screener setting to better understand its power and our purpose. Correct Finviz screener setup is essential for effective stock screening.

Market Cap Greater than $300 Million

Market cap is the total value of a company’s stock, calculated by multiplying the current market price per share by the total number of outstanding shares. It aids investors in assessing a company’s value and growth potential, as well as facilitating comparisons between companies in the same industry or market. We establish a minimum market cap of $300 million to exclude penny stocks susceptible to manipulation by pump and dumpers. This criterion is fundamental in your Finviz screener setup.

Return On Equity Over 20%

ROEReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl... is a financial metric that measures a company’s profitability and effectiveness. It is calculated by dividing net income by average shareholder’s equity. It helps investors assess management’s ability to generate returns. We set the ROEReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl... at over 20% to improve the quality of the companies returned by the stock screener. Effective Finviz screener setup criteria help filter the best stocks.

Debt To Equity Under 1

Debt to equity is a financial ratio that compares a company’s total debt to its total equity. It shows the company’s funding sources – debt versus equity. The formula is Total Debt / Total Equity. Total debt includes loans and bondsUnited States Treasury securities are debt instruments issued by the United States government to finance its spending. Treasury securities come in a variety of forms, including bil..., while total equity represents the company’s net worth. A higher ratio indicates more reliance on debt and higher financial riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and..., while a lower ratio suggests greater stability. Investors, creditors, and analysts use this ratio to evaluate a company’s financial health and ability to fulfill obligations. We set the Debt to Equity below 1 to select companies with manageable debt. Additionally, we prioritize companies with solid fundamentals in this screen, as it increases the likelihood of a successful turnaround. Proper Finviz screener setup ensures focused results.

Performance Quarter Down, Performance 2 Week Up

The Performance and Performance 2 fields on Finviz display the stock’s price performance. We are seeking a stock that has decreased in the quarter (Performance) AND has increased in the past week (Performance 2). This is the magic within this stock screener that helps us identify stocks that have changed direction. The right Finviz screener setup helps pinpoint these shifts.

Beta Over 1.5

Beta measures the riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... of a stock compared to the market. A beta of 1 means the stock moves with the market, while a beta greater than 1 suggests greater volatility. A beta less than 1 indicates less volatility. Beta helps investors assess riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... and potential returns. Higher beta stocks are riskier but may offer higher returns, while lower beta stocks are less risky but may provide lower returns. Your Finviz screener setup should consider beta for balancing riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and....

Average Volume Over 500K

Average volume is the number of shares traded in the stock each day. We set the average volume at over 500K to avoid trading in an illiquid stock that is more susceptible to a pump and dump scheme. Average volume is a key component of a sensible Finviz screener setup.

When using Finviz for different trading strategies, you’ll encounter a variety of screeners tailored to specific market approaches. Here’s a breakdown of these screeners:

Day Trading Screeners

1. Stocks with Strong Earnings
   Focus on stocks that are performing well due to positive earnings reports. This screener identifies those maintaining high trading strength.
2. High MomentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... Stocks
   Target stocks that exhibit a gap-up in prices with exceptionally high trading volume. This screener is ideal for capitalizing on quick market movements.
3. Short Squeeze Scanner
   Identify stocks that have the potential for a short squeeze, where heavily shorted stocks may surge due to buying pressures.
4. Technically Strong Averages
   Analyze stocks showing robust technical indicators, especially moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a..., to distinguish those with strong potential in day or swing tradingSwing trading is a popular trading strategy aimed at capturing short- to medium-term gains by taking advantage of price swings in financial markets. Unlike day trading, which invol... contexts.

Swing Trading Screeners

5. Consistent Midterm Performers
   Look for stocks with steady and reliable performance over the midterm. This screener helps in selecting long-term steady gainers rather than volatile movers.

These screeners on Finviz are designed to accommodate the dynamic needs of both day traders and swing traders, providing a broad array of options to tailor strategies effectively.

Combining Criteria Categories in Finviz

When using Finviz, you can seamlessly combine different criteria categories to fine-tune your search for stocks. This is possible through the “All” selection option, which allows for the integration of multiple filtering parameters. Here’s how you can make the most out of this feature:

Free and Premium Criteria

• Free Options: Many filtering options are available at no cost. These might include basic metrics like P/EThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc... ratios, market cap, and volume.
• Premium Options: For a more robust set of features, you can subscribe to their premium package for less than $30 per month. This unlocks advanced tools such as real-time data, backtesting capabilities, alert systems, and enhanced screener options.

Steps to Combine Criteria

1. Select the ‘All’ Option: Navigate to the filter settings and choose the “All” selection. This allows you to input multiple criteria simultaneously.
2. Specify Your Filters: Choose your desired filters from various categories. These could include technical indicators, fundamental metrics, or sentiment analysis.
3. Save and Apply: Once your criteria are set, save your configuration and apply the filters. Your search results will now reflect a combination of all the selected parameters.

By utilizing both the free and premium features, you can create a comprehensive and efficient stock screening process that caters to your specific trading strategies.

How Combining Criteria Enhances Stock Screening in Finviz

Combining Descriptive, Fundamental, and Technical criteria in stock screening offers a comprehensive approach to identifying promising investment opportunities. Here’s how each category contributes to a more refined selection process:

1. Descriptive Criteria: This includes general information such as market capitalization, sector, and industry. By setting parameters within these categories, investors can align their stock search with specific market sectors or company sizes, filtering out irrelevant options.
2. Fundamental Criteria: These focus on the financial health of a company, including metrics like earnings per shareEarnings per share (EPS) is a fundamental financial metric that provides valuable insights into a company's profitability. This widely used indicator helps investors and analysts g..., return on equityReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl..., and price-to-earningsThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc... ratio. By employing these criteria, investors can zero in on companies with strong financial performances, aiding in the assessment of a company’s long-term investment potential.
3. Technical Criteria: Technical indicators, such as the moving averageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a..., relative strength indexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ..., and Bollinger BandsJohn Bollinger, a financial analyst and trader, invented Bollinger Bands in the early 1980s. He designed this technical analysis tool to measure market volatility and provide insig..., provide insight into the stock’s price movement and trends. These criteria help investors identify potential entry and exit points by analyzing historical price patterns.

By integrating all three—Descriptive, Fundamental, and Technical—into a single screening process, investors can create a powerful, well-rounded strategy. This blend allows for pinpoint accuracy in identifying stocks that not only fit investors’ specific criteria but also demonstrate a robust financial background and favorable technical signals.

Moreover, this holistic approach aids in managing riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... and capitalizing on various market conditions. While most of these screenings can be performed for free, certain advanced options may require additional access packages, offering even greater depth for seasoned investors. Through this strategic combination, Finviz users enhance their ability to make informed and strategic investment decisions.

Fundamental Analysis Options in Finviz

Finviz offers a robust suite of fundamental analysis options designed for those who love delving into financial ratios and metrics. Here’s a breakdown of what you can explore:

• Price-to-EarningsThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc... (P/EThe price-to-earnings ratio, often abbreviated as P/E ratio, is a fundamental metric used by investors and analysts to evaluate the relative value of a company's shares in the stoc...) Ratios: Analyze how a stock’s current price compares to its earnings, helping you discern overvalued or undervalued stocks.
• Gross MarginGross margin is a critical financial metric that plays a pivotal role in evaluating a company's financial health and profitability. It is a percentage that indicates how efficientl...: Evaluate a company’s financial health by examining its gross marginGross margin is a critical financial metric that plays a pivotal role in evaluating a company's financial health and profitability. It is a percentage that indicates how efficientl..., to gauge efficiency in managing production costs.
• Debt-to-Equity RatioIn the world of corporate finance, one of the fundamental metrics that analysts and investors use to evaluate a company's financial health and stability is the Debt to Equity (D/E)...: Assess a company’s leverage and financial stability by analyzing its balance between debt and equity.
• Payout Ratio: Discover companies distributing significant earnings as dividends, offering insights into dividend sustainability.

These tools are invaluable for crafting a portfolio focused on dividend income or identifying growth opportunities based on comprehensive ratio analysis.

Using Technical Criteria on Finviz to Screen Stocks

Step 1: Define Your Criteria

To effectively screen stocks with Finviz, begin by establishing clear technical criteria. For instance, under the “Technical” tab, you could select:

• 200-day Moving AverageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a...: Perhaps look for stocks priced 10% below this average, indicating potential undervaluation.
• Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ...): Opt for stocks with an RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... under 60, as these are typically not overbought.
• Chart PatternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement...: Identify stocks exhibiting resistance trends.
• CandlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... Patterns: Look for specific formations, such as the Doji, which can signal potential reversals.

Additionally, you can integrate descriptive filters like market capitalization to target large-cap companies, ensuring you’re capturing robust stocks.

Step 2: Conduct Technical Analysis

Once you’ve screened stocks with Finviz, it’s crucial to supplement the results with your own technical analysis. Utilize platforms like Trading View for in-depth charting.

Consider the following when verifying a stock:

• Assess whether there are strong resistance points aligning with your trading thesis.
• Examine volume activity on price swings to understand market dynamics.
• Check Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... levels to confirm support and resistance zones.

This comprehensive analysis helps validate the screener’s output and aligns it with your strategic insights.

Step 3: Execute Your Trades

With a vetted stock list, you have several trading options:

1. Direct Stock Trading: Pursue short-term trades, potentially leveraging margin for increased positions.
2. Investment for Growth: Add the stock to your portfolio for long-term gains and dividend opportunities.
3. Options Trading: Engage with options for flexibility in riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... and potential high returns requiring less initial capital.

For those interested in learning more about options strategies, numerous resources are available to deepen your understanding and refine your approach.

Utilizing Descriptive Criteria in Finviz

When evaluating stocks using Finviz, the Descriptive criteria serve as a fundamental tool to help investors make informed decisions. Here’s how you can benefit from the Descriptive criteria:

• Market Capitalization: This allows you to differentiate between large-cap, mid-cap, and small-cap stocks. Understanding the market cap helps in assessing the size and stability of the company, which can inform your investment strategy.
• Earnings Dates: For those speculating on earnings, tracking upcoming earnings releases is crucial. The Descriptive criteria provide timely earnings information, aiding traders in planning their strategies around these potentially volatile periods.
• Industry and Sector Classification: Quickly identify which industry and sector a stock belongs to. This is vital for diversification and for investors who want exposure to specific economic segments.
• Optionability: Determine whether a stock has options available for trading, offering additional opportunities for strategies involving puts and calls.
• Volume: Assess the trading volume to understand the liquidity of a stock. High volume can indicate strong investor interest and provides clues on stock volatility.

By using the Descriptive criteria effectively, investors can streamline their research, filter stocks according to specific attributes, and align their portfolio with their financial goals. These criteria lay a solid foundation for further technical and fundamental analysis.

What Additional Features are Available with Finviz’s Elite Subscription?

While the basic plan offers a robust set of tools, upgrading to the Elite subscription unlocks a host of advanced functionalities that can significantly enhance your trading and investment strategies.

Key Features:

• Real-Time Data: Stay ahead with up-to-the-minute market data. No delays mean you can make decisions based on the latest information available.
• Advanced Screeners: Fine-tune your stock searches with sophisticated filters to pinpoint the exact criteria you need, making your investments more targeted and efficient.
• Backtesting Options: Simulate trading strategies against historical data to see how they would have performed. This feature allows you to refine and perfect your approach before committing real money.
• Custom Alerts: Set up personalized notifications for events or price movements that meet your specific criteria, ensuring you never miss a critical opportunity.

Subscription Cost:

For an investment of under $30 a month, the Elite subscription provides these invaluable tools and more, empowering both novice and seasoned traders to elevate their market game.

How to Use the “Descriptive” Filter with Other Criteria in Finviz

In Finviz, leveraging the “Descriptive” filter alongside other criteria can significantly refine your stock screening process. Here’s a step-by-step guide on how to do it.

1. Set Your Descriptive Filter

Begin by setting a “Descriptive” filter to narrow down your search to larger companies. For instance, you might choose a market capitalization range of $10 billion to $200 billion. This ensures that your results include only well-established, large-cap stocks.

2. Add Technical Filters

Next, enhance your screening by applying technical criteria under the “Technical” tab. Here are a few examples:

• 200-Day Moving AverageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a...: Filter for stocks whose current price is at least 10% below this moving averageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a.... This can help identify undervalued stocks with potential for growth.
• RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ...): Set this to below 60 to avoid overbought conditions, indicating that the stock may have more room to rise.
• Pattern Recognition: Use trendline resistance to find stocks that are at key levels of technical significance.
• CandlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... Patterns: Look for specific candlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... formations like the Doji, which can signal potential reversals.

3. Combine Filters for Precision

Utilize the combined power of your descriptive and technical filters to zero in on the best candidates. For example, combining the market cap filter with the above technical criteria might yield a list of large-cap stocks that are technically poised for potential gains.

Example Outcome

After setting these filters, your screener might highlight a stock like Continental Resources Inc. (CLR), an oil and gas company currently trading around $46.50. The stock fits all your predefined criteria— it’s a large-cap company whose price is below the 200-day moving averageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a..., it’s not overbought according to its RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ..., and it exhibits specific technical patterns that you’re interested in.

By methodically using the “Descriptive” filter along with other criteria in Finviz, you can effectively narrow down your stock options to find high-quality investment opportunities tailored to your specifications.

Technical Criteria in Finviz’s Screener

The “Technical” section in Finviz’s screener encompasses a range of criteria to analyze and filter stocks based on their technical attributes. This section is particularly appealing to traders who rely on technical analysis to guide their decisions.

Key Criteria in the Technical Section:

• Moving AveragesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a...: Determine if a stock is trading above or below key moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a..., such as the 50-day, 100-day, or 200-day moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a....
• Chart PatternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement...: Identify stocks within specific chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement..., such as downward flag patterns, head and shouldersThe head and shoulders chart pattern is a technical analysis tool used in stock trading. It is one of the most well-known and widely recognized chart patterns, and it is used by in..., or ascending trianglesAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line....
• CandlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... Formations: Analyze stocks based on recent candlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... patterns, such as Dojis, hammers, or engulfing patterns.
• Gap Analysis: Focus on stocks with recent price gaps, which may indicate significant market movements or upcoming volatility.

Combining Multiple Criteria

Another powerful feature is the ability to combine multiple criteria. You can merge descriptive, fundamental, and technical attributes to create a comprehensive filter, allowing for a more tailored stock selection process.

By utilizing these technical criteria within Finviz’s screener, traders can efficiently pinpoint stocks that meet their specific technical analysis requirements.

How to Layout Your Criteria in Finviz’s Technical Tab

When using Finviz’s Technical tab, organizing your criteria is key for finding the most promising stocks. Here’s a step-by-step guide to help you get started:

1. Identify Your Key Technical Indicators

First, decide on the technical indicators you wish to apply. A good starting point might include:

• 200-Day Moving AverageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a...: Set this to catch stocks trading at least 10% below their 200-day Simple Moving AverageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a... (SMA).
• Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ...): Choose a threshold that indicates the stock is not overbought, such as an RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... below 60.
• Pattern Recognition: Look for stocks showing a technical pattern, like a trendline resistance.
• CandlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... Patterns: Select specific candlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... formations, such as a Doji, that suggest potential reversals or pauses in market movements.

2. Add Descriptive Filters for Better Precision

To narrow down your results to significant and robust companies, incorporate descriptive filters. For instance:

• Market Capitalization: Set a range to focus on large-cap companies, such as those with market caps between $10 billion and $200 billion.

3. Apply and Analyze Your Criteria

After configuring your criteria in Finviz, run the screener to generate your list of candidate stocks. This process should yield a handful of stocks that meet all your defined parameters.

4. Interpret the Results

It’s crucial to visually inspect the stocks on a technical chart for confirmation. For example, you might find a stock from the oil and gas sector trading at a specific price point that meets all your technical and descriptive criteria.

By laying out your criteria in this structured manner, you’ll make the most of Finviz’s Technical tab to uncover quality investment opportunities.

How to Conduct Technical Analysis on a Stock Identified by Finviz

Once you’ve used Finviz to identify a potential stock for trading, conducting your own technical analysis is crucial. Here’s a step-by-step guide to ensure thorough evaluation:

1. Verify Key Indicators

Check whether the stock meets your personal criteria. Look for indicators like:

• Support and Resistance Levels: Identify areas where the stock has historically struggled to move past.
• Volume Trends: Assess volume on price swings to gauge market interest and potential momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o....

2. Utilize Charting Tools

Leverage advanced charting platforms, such as TradingView, to perform a detailed analysis. These platforms offer comprehensive tools to scrutinize various aspects of the stock.

3. Examine Specific Technical Metrics

Focus on certain key metrics:

• Moving AveragesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a...: Analyze different time frame moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a... to understand the stock’s trend.
• Fibonacci RetracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... Levels: Use these levels to identify potential reversal points and validate support or resistance points.

4. Cross-Reference Multiple Indicators

Ensure your trade idea is backed by multiple technical signals. For example:

• RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ...): Check for overbought or oversold conditions.
• MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... (Moving AverageThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a... Convergence Divergence): Look for convergence and divergence patterns to interpret momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... shifts.

5. Visual Confirmation

After evaluating the major indicators, visually inspect the chart to spot any patterns like head and shouldersThe head and shoulders chart pattern is a technical analysis tool used in stock trading. It is one of the most well-known and widely recognized chart patterns, and it is used by in..., triangles, or flags. These can offer additional insights into potential price movements.

By combining these strategies, you can perform a robust technical analysis and increase the likelihood of making informed trading decisions.

Trading Options After Identifying a Stock Using Finviz

Once you’ve identified a promising stock using Finviz, you have several trading options to consider. Each method caters to different strategies and riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... appetites, allowing you to choose what aligns best with your financial goals.

1. Direct Stock Trading

• Short-Term Trading: This involves buying and selling the stock within a short time frame to capitalize on price fluctuations. Short-term trading might necessitate margin accounts to enable larger positions and potentially higher returns.
• Long-Term Investing: Holding the stock in your portfolio for an extended period aims at reaping future gains and dividends. This approach focuses on the stock’s long-term growth potential rather than immediate profits.

2. Options Trading

Options trading allows for more control with potentially less capital outlay. Here, you can choose:

• Call Options: If you anticipate the stock price will rise, buy call options to profit from the price increase without owning the stock.
• Put Options: If you think the stock price will fall, put options let you benefit from the decrease while managing riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and....

3. Portfolio Integration

• Adding to Your Portfolio: Integrate the identified stock into your existing investment strategy if it aligns with your financial goals. Consider its long-term potential and how it complements your current holdings.

Things to Keep in Mind

• RiskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... Management: Always be aware of your riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... tolerance and use stop-loss orders or hedgingFinancial hedging is a strategy used to reduce or eliminate the risk of financial losses that may arise from unfavorable price movements. strategies where necessary.
• Market Research: Continually monitor market trendsUnderstanding market trends is a critical component for businesses conducting industry analysis. For example, Netflix identified early on the growing demand for streaming services ... and news that could affect the stock’s performance.
• Diversification: Avoid putting all your capital into a single stock; diversify to spread riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and....

By understanding and utilizing these trading options, you can better navigate the stock market and make informed decisions aligned with your investment strategy.

What Additional Functions Does Finviz Offer Beyond Its Stock Screener?

Finviz provides a comprehensive suite of tools beyond its robust stock screener. Here’s what you can expect:

• News Analysis: Stay updated with the latest market news, helping you to make well-informed decisions.
• Sector Performance Analysis: Compare how different market sectors are performing, identify trends, and make strategic choices.
• Stock Maps: Visualize stock performance over various timeframes, neatly grouped by sectors for easier analysis.

These additional features make Finviz not just a tool for screening stocks, but a complete resource for in-depth market analysis.

How to Conduct Technical Analysis After Identifying Stocks with Finviz

Once you’ve pinpointed potential stocks using Finviz, it’s essential to delve deeper with technical analysis to ensure they align with your trading strategy. Here’s how you can conduct effective technical analysis on your shortlisted stocks:

Step 1: Verify Chart Patterns

Begin by examining the chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... of each stock. Identify key patterns that resonate with your trading goals, such as head and shouldersThe head and shoulders chart pattern is a technical analysis tool used in stock trading. It is one of the most well-known and widely recognized chart patterns, and it is used by in..., double bottomThe double bottom chart pattern is a reversal pattern that indicates the exhaustion of a downward trend and the potential for an upward trend., or cup and handleThe cup and handle chart pattern is a widely recognized formation in technical analysis that signals potential bullish price movements. Initially introduced by William J. O'Neil in.... These patterns can provide insight into potential price movements.

Step 2: Analyze Support and Resistance Levels

Assess the support and resistance levels to determine if the current stock price is poised for a breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... or likely to hit a barrier. This will help you gauge the potential reversal or continuation of the trend.

• Support Levels: Identify the price points where the stock has historically had difficulty falling below.
• Resistance Levels: Recognize levels where upward movements have consistently stalled.

Step 3: Examine Volume Patterns

Understanding volume can offer clues about the strength of a price movement:

• Check for increasing volume during price increases for bullish signals.
• Look for declining volume during upward movements as a potential warning.

Step 4: Utilize Fibonacci Retracement Tools

Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... levels are powerful in identifying potential reversal zones. Apply these tools to see if they align with existing resistance or support levels, offering additional confirmation for your analysis.

Step 5: Consider Moving Averages

Incorporate moving averagesThe concept of moving averages dates back to the early 20th century. While it is challenging to attribute the invention of moving averages to a single individual, W. P. Hamilton, a... such as the 50-day and 200-day averages to analyze trends over time. A crossover of these lines can often indicate a significant trend change.

Step 6: Utilize Charting Platforms

Use comprehensive charting platforms, like TradingView, to enhance your analysis. These platforms provide sophisticated tools and indicators, such as RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... or MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ..., that can offer deeper insights into a stock’s potential movements.

Thorough technical analysis involves a multi-faceted approach. By scrutinizing chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement..., evaluating volume, and utilizing advanced tools, you increase your chances of making informed trading decisions.

I have used this Finviz screen to find incredible turnaround stocks before most retail traders. I used this Finviz stock screener to time the turnaround in Amazon stock back in early 2023 that landed us a 30% win in the stock in less than 12 weeks! Please make sure to sign up for a free Finviz account through me and then email me with any questions or Finviz stock screens you would like to see. Your success starts with the right Finviz screener setup.