A consistent routine with Finviz can help traders quickly identify stocks with high growth potential by screening based on volume, price action, and technical setups. This lesson will guide you through setting up effective screens, evaluating key stocks, and managing watchlists, using Finviz’s free tools. You’ll learn how to identify stocks with strong volume, recognize favorable setups, and streamline your selection process to build a reliable watchlist.

Finviz Setup: The Basic Stock Screening Process

Finviz.com is a free resource that enables traders to screen for stocks based on volume, price change, and other technical indicators. Here’s how to set up and use it effectively:

• Homepage Snapshot: The Finviz homepage features lists of top gainers, new highs, and unusual volume. Quickly glancing at this overview provides an immediate sense of which stocks are moving significantly, like a $29 stock up 40% on the day.
• Creating and Saving Screens: Setting up a user account on Finviz allows you to save your customized screens, which is useful for daily monitoring. Some common screens include:
  • Bull Snort Screen: Searches for high volume (often indicating institutional interest) alongside price gains. This filter might show two pages of stocks with strong volume, offering candidates for more focused analysis.

Screening Stocks: Criteria for Selection

Here are key criteria for filtering stocks using Finviz:

• Price Movement: Stocks with significant gap ups (often 10% or more) signal strong price movement, suggesting potential follow-through.
• Volume Indicators: High volume, especially when consistent over several days, can signal buying interest from large players.
• Sector and Stock Characteristics: Focus on sectors you understand and are comfortable with. For instance, some traders prefer tech stocks over financials or real estate.
• Example of Stock Screening in Action: Suppose you see a stock like Lucid Motors (LCID), which has both high volume and a compelling growth story. If Lucid shows an upcoming product release, like vehicle delivery, that’s a noteworthy catalyst. Writing down such stocks enables you to track them over time.

Building Your Watchlist with Finviz

Once you’ve identified promising stocks, the next step is building a list:

• Notepad Method: This trader uses a simple notepad to jot down names while going through screens, allowing for quick review and a personal filtering process. For instance, if a stock on the Bull Snort screen shows big green volume but isn’t aligned with the trader’s sector interest, it might be left off the list.
• Example Workflow:
  • Scroll and Note: Going through lists like “Bull Snort” or “Gappers” quickly allows for a visual scan of setups. Stocks like Zillow, with high volume and a breakout, might make the list, whereas stocks with inconsistent price movements may be skipped.
• Separating Promising from Uncertain: A name like MTTR that looks appealing based on volume and chart structure, even after a failed trade, can be worth noting to see if it consolidates into a more favorable setup.

Refining Your Watchlist in Charting Software

After compiling a preliminary list, it’s time to review these stocks in a more detailed charting software like Thinkorswim (TOS):

• Daily Review in TOS: Import names from the notepad list into TOS for a closer examination of daily and weekly trends, and to see if they meet focus list criteria.
• Assigning Stocks to Lists: Place each stock on a specific list (e.g., “Focus List” for high-potential trades, “Liquid Leaders” for consistent performers) for streamlined access during the trading day.