Swing trading is a popular trading strategy that involves buying and holding stocks for a short period of time, typically a few days to a few weeks. This type of trading requires a keen eye for market trends and the ability to quickly identify potential stocks to trade. One tool that can help with this process is a stock selection screener. In this article, we will discuss how to use a stock selection screener for swing trading.
What is a Stock Selection Screener?
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A stock selection screener is a tool that allows traders to filter through thousands of stocks based on specific criteria. This can include factors such as market capitalization, price, volume, and technical indicators. By using a stock selection screener, traders can quickly narrow down their options and focus on potential stocks that fit their trading strategy.
Identify Your Criteria
Before using a stock selection screener, it is important to identify the criteria that are important to your swing trading strategy. This can include factors such as market sector, price range, and technical indicators. By having a clear understanding of your criteria, you can more effectively use the screener to find potential stocks.
Choose a Stock Selection Screener
There are many stock selection screeners available, both free and paid. Some popular options include Finviz, TradingView, Chartink and StockFetcher. It is important to research and compare different screeners to find one that best fits your needs and budget.
Set Your Filters
Once you have chosen a stock selection screener, it is time to set your filters. This involves selecting the criteria that you identified earlier and inputting them into the screener. For example, if you are looking for stocks in the technology sector with a price range of $10-$50, you would input these filters into the screener.
Analyze the Results
After setting your filters, the screener will generate a list of potential stocks that fit your criteria. It is important to carefully analyze these results and consider additional factors such as company news and market trends before making a decision. It may also be helpful to use technical analysis tools to further evaluate the potential of each stock.
Monitor and Adjust
Image Credit: Soliman Cifuentes
Swing trading requires constant monitoring and adjustment. As such, it is important to regularly check your stock selection screener and make any necessary changes to your filters. This will ensure that you are always focusing on the most relevant and promising stocks for your trading strategy.
Chartink: A Best Swing Trading Stock Selection Screener
One example of a stock selection screener for swing trading is Chartink, which allows users to scan stocks based on various technical and fundamental parameters, such as RSI, MACD, breakouts, divergence, growth, book value, market cap, dividend yield, etc. Users can also create their own custom scans, or use predefined scans, such as the [Swing Trading] scan, which filters stocks based on volume and SMA. Chartink also provides live alerts, charts, and dashboards for swing traders.
Conclusion
Using a stock selection screener can greatly assist with the process of finding potential stocks for swing swing trading. By identifying your criteria, choosing a suitable screener, and regularly monitoring and adjusting your filters, you can effectively use this tool to improve your trading strategy. Remember to always conduct thorough research and analysis before making any trading decisions. Happy trading!
