A stock screener is one of the most powerful tools in a trader's arsenal. Instead of manually searching through thousands of stocks, a screener lets you filter the market based on specific criteria to find exactly what you are looking for. Whether you want stocks breaking out, undervalued companies, or high-momentum plays, a screener can find them in seconds.
What is a Stock Screener?
A stock screener is a tool that filters stocks based on criteria you define. Think of it as a search engine for stocks. You set the parameters, and the screener returns all stocks that match your requirements.
Key benefit: Instead of looking at 5,000+ stocks one by one, a screener narrows your focus to a manageable list of candidates that fit your trading strategy.
Essential Screener Criteria
Most screeners offer dozens of filters. Here are the most important ones to understand:
Price and Volume Filters
- Stock price: Filter by minimum and maximum price (e.g., $5-$50)
- Average volume: Ensure liquidity (typically want 500K+ daily volume)
- Market cap: Filter by company size (small, mid, or large cap)
- Relative volume: Find stocks trading above their average volume
Technical Filters
- Price vs moving average: Above or below 20, 50, or 200 SMA
- RSI levels: Find overbought (70+) or oversold (30-) stocks
- 52-week high/low: Stocks near highs or lows
- Gap percentage: Stocks gapping up or down
- Price change: Stocks up or down by a certain percentage
Fundamental Filters
- P/E ratio: Valuation metric comparing price to earnings
- Revenue growth: Companies growing sales
- Earnings growth: Companies growing profits
- Dividend yield: For income-focused investors
Sample Screener Setups
Here are proven screener configurations for different trading styles:
1. Momentum Breakout Screen
Find stocks breaking to new highs
Filters:
- Price: $10 - $100
- Average volume: 1M+
- Price within 5% of 52-week high
- Relative volume: 1.5x or higher
- RSI: 50-70 (strong but not overbought)
2. Oversold Bounce Screen
Find beaten-down stocks ready to rebound
Filters:
- Price: $5+
- Average volume: 500K+
- RSI: Below 30
- Price 20%+ below 50-day SMA
- Market cap: $1B+ (avoid penny stocks)
3. Gap and Go Screen
Find stocks gapping up premarket
Filters:
- Gap up: 4%+
- Premarket volume: 100K+
- Float: Under 50M shares (for volatility)
- Price: $5 - $50
4. Value Investing Screen
Find undervalued quality companies
Filters:
- P/E ratio: Below 15
- Price to book: Below 1.5
- Dividend yield: 2%+
- Debt to equity: Below 0.5
- Market cap: $10B+ (established companies)
How to Use Screener Results
Finding stocks is just the first step. Here is how to work with your results:
Step 1: Review the List
Your screener might return 20-50 stocks. Quickly scan through them and eliminate any that do not look interesting at first glance. Check if there is news, earnings, or other catalysts.
Step 2: Analyze Charts
For each remaining candidate, pull up the chart. Look for clean setups with clear support and resistance levels. The screener finds candidates; chart analysis confirms them.
Step 3: Check the News
Understand why a stock is moving. Is it earnings? An upgrade? Sector rotation? Knowing the catalyst helps you gauge how long the move might last.
Step 4: Plan Your Trade
Before entering, define your entry, stop loss, and target. A screener finds opportunities, but you still need a solid trading plan.
Common Screener Mistakes
- Too many filters: Over-filtering returns no results. Start simple and add criteria gradually.
- Ignoring volume: Low-volume stocks are hard to enter and exit. Always filter for adequate liquidity.
- Not verifying results: Screeners use delayed data. Always confirm with real-time quotes.
- Chasing results: By the time you see a stock on a screener, the move may be over. Look for setups, not stocks that have already moved.
Free vs Paid Screeners
Many brokers offer free screeners, but paid options have advantages:
Free Screeners
- Finviz (excellent free version)
- TradingView (basic screening)
- Yahoo Finance screener
- Broker-provided tools (TD Ameritrade, Fidelity)
Paid Screeners
- Real-time data (free versions are often delayed)
- More filter options
- Custom alerts when criteria are met
- Historical backtesting
Building a Screening Routine
Consistency is key. Here is a sample daily routine:
- Pre-market: Run gap screeners to find stocks moving before the open
- Market open: Run breakout screeners to find momentum
- End of day: Run swing trade screeners for next-day setups
- Weekend: Run fundamental screeners for longer-term ideas
Track Your Screener Discoveries
Pro Trader Dashboard lets you tag and track trades you found through screening. See which screener setups work best for your trading style.
Summary
Stock screeners transform the overwhelming task of finding trading ideas into a systematic process. Start with simple screens matching your trading style, then refine based on results. Remember that screeners find candidates, but you still need to analyze charts, check news, and plan your trades carefully. Build a daily screening routine and track which setups lead to your best trades.
Learn more: Watchlist management and how to read stock charts.