Volume Based Stock Screener
Hello traders, and welcome to the stock market trading course, and the fourth module – Short to Medium Stock Trading. In this lesson, I am going to teach you how to build a volume-based stock screener to find stocks. And the reason working with a stock screener is important is because you don’t want to be trading day in and day out the same stocks. You want to be trading the stocks that are moving, the stocks that are already in play, and for that we are going to need a volume based stock screener.
Alright, to build the screener we are going to go to this website, finviz. Finviz stands for financial visualizations. Now once you get onto this site, you are going to see that we have two default screeners on the homepage. Right here you can see the top gainers from yesterday’s session, the top losers from yesterday’s session, the stocks that made a new high, a new low, the ones that are overbought, oversold, unusual volume, most volatile, downgrades, upgrades, etc. Now I’m going to show you an example, and we are going to pick this stock. The first thing I want to show you on this website is that if you hover your mouse over the price of the stock you are going to see that the daily chart of the stock pops out. Okay? Now let’s go to the trading platform and let’s put on the FPRX stock on the charts. And as you can see, FPRX was the biggest gainer yesterday, moving from $16 to $30 so that’s an incredible $15 move on a $16 stock. Now if we go back to the page and go to the biggest loser, or the top loser from yesterday, it is IMPR. We have also a penny stock, NCTY. We have a medium sized stock VAC. And you can use this to know which stocks were really moving yesterday and just go over them before the opening, and of course right around the opening, to see if they are continuing with the move or if you can play a continuation.
Let’s take another example of a big gainer. I like this daily chart a lot. Let’s go to the platform and see the five minute chart. If you look at the daily chart, that consolidation around $10 and then a move from the low $9’s it seems to $11.39 yesterday on ASMB. Then making a new high and breaking the previous high, and the ticker was ASMB. Let’s go, and let’s watch that stock move today. Alright. So as you can see this stock does not really have the volume in it. Well you can see just by the volume chart, of course, just by looking at the candlesticks themselves it’s very gappy, but it really moved yesterday and today it has no volume at all, so we are not going to play this stock.
But these are just the screeners on the home page. I’m going to show you how to create a screener for you to be able to find stocks that are moving. Now, if you click on the top screener, it will take you to this. And you can choose any filters for your stocks. Now the filters that I use are average volume, price, and market cap. Now, I’m going to choose to look for stocks under $10, well just because I like to trade stocks under $10 because they are cheaper, they have much larger percent changes, and you can buy more shares of the company. I’m going to look at a market cap from the small, this means 300 million to 2 billion, and I’m going to choose an average volume of over 1 million shares per day. So, these are the stocks that came out of the filters that I choose, and the first thing I am going to do is look at the change, the percent change of the stock. If you click here you can arrange it by ascending or descending order. Right here we have C&J Energy Services, okay, with a minus 2.71 point change. So let’s hover over the ticker to see the chart, and this stock has been on a very strong down move from the high $11’s to around $3 and then we are trading inside of what seems to be a continuation pattern on the daily. Now, today it has moved 2.71% of the negative side so we are going to the platform to look at the stock and what it is doing today. So the ticker is CJES, and as you can see, well just by looking at the screener on finviz, we could have known before the open that the stock was in play, and we could have short-sold the open because if you look closely, it opened around the 551 level and it’s down to the 522 level right now. We have found some buyers in this area of support, which was in previous resistance, which was previous support again, and it seems to be breaking even lower. So this stock was a very good pick on the screener for a short-sale.
Now let’s go back to finviz and look at the percent changes on the positive side and let’s look at what the stock market has for us. Now we have PWE with a positive percent change of 435. Now this is in the oil, gas exploration and drilling industry, and the company is from Canada and has already traded over 215,000 shares. So let’s go to the chart and take a look at what PWE has been doing. Alright, so PWE…even though the percent change is high it is a penny stock and it doesn’t look to be moving or continuing its move to the upside, or maybe we are just testing these levels because we broke above these levels we might be testing these levels again for a nice buy. And we can ride this penny stock from the 115 level to the 122 level. And because this stock is so cheap you can buy so many shares that a 15 cent move can easily make you hundreds of dollars.
Now let’s go back to the screener, and I’m going to show you that if you really want to get picky on it, you can start playing with it and filter in the overbought oversold conditions, you can throw in patterns. You can throw in current volume, you can throw in actually about anything you want, but I really only use these filters to look at stocks that are really moving, okay? Now let’s go back and I’m going to show you another little trick on the finviz screener. If you click here, on snapshot, okay it’s going to show you the daily chart of the stock with a 50, a 200, and a 20 simple moving averages, it’s going to show you all of the information of the company, and it’s going to show you also all the latest news. And the description of the company. And this is actually very useful because if you look closely, you can see that PWE, which is the biggest gainer on our filter today, is up 6 percent or 7 cents. Okay? Let’s go and look at some other bigger gainers. Now this is a really good chart because if you look closely, well the market has been open for about 25 minutes now, this stock is up about 5 percent, or 22 cents, and it’s about to break a trend line right here. Now this is a very, very good buy signal for you technical traders out there so this might be a stock you might want to put on your watch list and wait for the break for you to be able to buy this stock for at least a 30 to 40 cent move. And this is how you’re going to be able to use your screener on finviz to find hot stocks to day trade and even if you are not into day trading and you like to hold your positions on the medium term, you can still use the same screener to find setups and to find hot stocks.
And if we go back to the finviz screener, you can see the biggest gainers of today are no longer PWE or CRC but CNPT and OREX because this screener auto refreshes. The interesting stock here will be OREX, which has broken the $3 level and has traded over 1 million shares in just over one hour of trading. So if we go back to the chart and look at what OREX has done today we might be able to look for a buy opportunity on a day trading basis. Alright, so let’s go and have a look at the end of the chart, right here you can see that we opened very nicely at 285, rallied for about 50 cents, and now we are correcting to the downside on decreasing volume, which means that this might be a very good signal that the stock might be just correcting and not flushing. But of course you have to do your analysis, and on these lessons we are just looking at what the stock has done. We have broken the $3 level and we are testing the $3 level right now. So to buy this stock around this level would mean that we would be risking about 5 cents to make 30 cents, which is an excellent risk to reward. And we would have never, never have found this stock without the screener, or the volume based screener that we built on finviz.