- May 4, 2023
- Posted by: CoachShane
- Category: Trading Article
Are you a new stock trader looking to use the Finviz stock screener to find stocks? Finviz is an invaluable tool for finding and analyzing potential candidates to trade, especially when using the pullback strategy.
In this article, we’ll take a look at how stock traders can make use of Finviz’s technical tools and volume indicators to quickly identify promising stocks for a pullback strategy.
We’ll also explore some tips on evaluating these stocks before executing trades found on Finviz.
What is Finviz?
Overview of Finviz
Finviz (short for Financial Visualization) is a powerful stock screener and market research tool. Finviz provides a range of features to help traders identify, analyze, and track stocks that meet their investment goals.
The platform provides stock data on over 7,000 stocks from the U.S., Canada, Europe, Asia Pacific, Latin America, Africa and Middle East markets.
Finviz provides a straightforward user experience and simple navigation, enabling traders to rapidly scan through thousands of stocks in order to pinpoint those that fit their desired parameters.
Benefits of Using Finviz
By utilizing the platform’s advanced filters such as price performance metrics or technical indicators like moving averages or RSI, users can narrow down their search results quickly without having to manually sort through hundreds of charts by hand.
With its customizable watchlists feature users are able to organize all relevant securities into one convenient location for easy tracking purposes throughout the day if desired.
Understanding the Basics of Stock Trading
Stocks are a type of security that represent ownership in a company. They can be traded on exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq, or over-the-counter markets. Traders buy stocks to gain exposure to companies they believe will increase in value over time.
Different stock types, such as common and preferred stocks, as well as ETFs, can be bought through exchanges or over-the-counter markets.
Common stock is the most widely held form of equity securities. It gives shareholders voting rights at shareholder meetings and entitles them to dividends when declared by the board of directors.
Preferred stock is a type of equity that shares many characteristics with common stock, often carries fewer voting rights, but may be eligible for higher dividend payments.
ETFs track an index or sector of stocks while allowing investors access to diversified portfolios without having to purchase individual shares.
Stock Market Strategies
There are many different strategies traders use when trading stocks depending on their risk tolerance level and goals for returns on investments made into specific equities, securities, and stocks.
A popular strategy traders for day trading and swing trades involves buying pullbacks which involve entering into positions after prices have dropped .
Other strategies include momentum trading and breakout trading. Each one offers unique advantages based upon one’s own personal preferences
How To Use Finviz to Find Stocks For A Pullback Strategy
Using Finviz to Find Stocks with a Pullback Strategy is an effective way for traders to filter stocks that are in an uptrend and are recently in a corrective phase.
By using stock screeners, traders can configure many types of filters to locate trade ideas that match their objectives based on criteria ranging from technical to straight fundamentals.
For this example, I will use the free version of the stock screener that Finviz offers. There is a paid subscription that offers advanced features that you may want to consider.
Head to the screener section and click the descriptive tab. The selected screens are in yellow and are average volume >300K. We want to trade liquid stocks however if you are trading large position size, you may want to select one million shares and above.
We have chosen USA stocks only that are over $3.00/share.
Under the technical tools tab, we are going to look at the moving average settings.
We want price to be above the 200 SMA, above the 50 SMA, and below the 20 SMA.
Finviz gives us a list of 103 stocks that are currently in agreement with our scan.
Using Finviz to find stocks with a pullback strategy can be an effective way for traders of all levels to identify potential opportunities.
Next is to evaluate the potential stocks found on Finviz in order to assess their setups before entering any trades.
Evaluating Potential Stocks Found on Finviz
In our example, we have 103 stocks come up in the Finviz screener. We will scan for a technical setups to see if it is a stock worth considering.
Since we are scanning for pullbacks, we should know what makes up a good pullback candidate:
We would like to see a strong move to the upside prior to the corrective action.
Looking at a chart that exhibits a bull flag chart pattern in a stock that had a good run in price is a good start.
In order to find these, you will want to scan through all the stock charts that the screener had identified.
There are several sorting methods from market cap to current volume. My favorite is change in percent where I can sort by those making big moves to the upside and big moves to the downside.
With an elite subscription, there is more customization with the scans but for those starting out with, the free stock screener version is fine.
To scan the chart, you can either switch to chart view or hover over the ticker name. A small chart will pop up as seen with EMBC above.
Click the small chart to open the larger version that will offer other time frames. Intraday time frames, real time data and extensive charting capabilities are only available for Finviz elite users.
On closer inspection, the technical filters highlighted this stock but the pullback is not something we are interested in.
You would continue to scroll through the small charts and enlarging those you are considering.
Coty has had a nice run in price and is currently in an orderly pullback. We’d look for some basing in the price and look to trade reversals back in the direction of the trend.
We can also use certain candlesticks such as hammers as part of our screens.
In this example we are using:
Performance: Week down (you can even set % based changes in the free access mode)
Price: Over $3.00
200 SMA: Price above the average
Average volume: +300K
You can scroll through each candlestick type looking for a chart setup that catches your eye.
Using the hammer candlestick, CSIQ looks interesting.
We can see a double bottom in a range bound instrument. Currently, a hammer has shown up at support and range traders can consider this pullback as part of a strategy.
Traders that are good with chart patterns such as ascending triangles could keep a simple scan for bullish stocks:
Performance: 1 month, 3 month, 6 month gains = +30% and up.
Price: $3.00 +
Traders are looking for a big move over those periods and a consolidation/pullbacks.
This brings up this chart as an example. We have a big move, price pulled back and is currently consolidating. These types of setups are great for swing traders looking for the next move up in price.
Finviz does have a chart pattern scanner but I and others prefer to get our eyes on the charts to see if there is a pattern. The data is good but leaving all decisions to scans will leave many great charts untouched.
Those wanting more features in this stock market portal may want to bypass the free Finviz and head to the paid version.
Elite users get real time data and intraday charting which is perfect for traders looking for day trading opportunities. Advanced screeners and back testing with various technical filters helps you design and test various strategies to succeed in trading financial markets.
Whether you are swing trading, position trading or day trading, Finviz stock screener is a low cost way to narrow down your list of potential trading opportunities.
Finviz Stock Screener Faqs
How do you use finviz to find stocks?
Finviz is an online stock screener and research platform that provides traders with a comprehensive set of tools to analyze stocks. Finviz’s Stock Screener allows users to filter through thousands of stocks based on desired criteria, such as price, market capitalization, sector and earnings growth rate.
Finviz offers pre-built filters such as top gainers, unusual volume, and even recent insider trading activity.
Is Finviz a good stock screener?
Finviz is one of the best stock screeners with an intuitive and easy-to-use interface. It offers a wide range of technical indicators, charting capabilities, and filtering options to help users identify stocks that match their criteria.
It also provides news updates on the companies it tracks as well as real-time market data. With its comprehensive features, It can be used by both amateur and experienced traders for finding potential trading opportunities in the stock market.
Finviz is a powerful stock screening and analysis tool that can be used to identify potential investment opportunities. By using the platform’s extensive features, traders can locate stocks for a pullback strategy and evaluate their potential for future growth.
Additionally, Finviz Elite provides even more advanced tools and features for experienced traders. Beginner or an experienced traders, can get a huge benefit from using Finviz to fill up their stock trading watchlist. Don’t hesitate to explore the platform and discover the potential it holds for your trading strategy.
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