Technical indicators help identify trading opportunities by analyzing price and volume patterns. By building screeners around popular indicators like RSI, MACD, and moving averages, you can systematically find stocks at key technical junctures. Here are the most effective technical screener setups you can use today.
RSI-Based Screeners
The Relative Strength Index (RSI) measures momentum on a scale of 0-100. It identifies overbought and oversold conditions that may precede reversals.
Oversold Bounce Screen
Find stocks that may be ready to bounce:
- RSI(14) < 30: Oversold territory
- Price > 200-day SMA: Long-term uptrend intact
- Volume increasing: Potential capitulation
- No earnings within 7 days: Avoid news risk
RSI Oversold Screen
RSI(14) between 20 and 30
RSI yesterday > RSI today (still falling)
Price above 200-day SMA
Average volume > 500,000
Market cap > $1 billion
This finds quality stocks at potentially oversold levels.
RSI Bullish Divergence
Price makes lower low while RSI makes higher low:
- Price at 20-day low
- RSI higher than at previous 20-day low
- Indicates weakening selling pressure
- Often precedes reversal
RSI Breaking Above 50
Momentum turning bullish:
- RSI crossing above 50 from below
- Price above 20-day SMA
- Volume above average
- Confirms shift from bearish to bullish momentum
MACD-Based Screeners
MACD (Moving Average Convergence Divergence) identifies trend changes and momentum shifts.
MACD Bullish Crossover
- MACD line crosses above signal line: Buy signal
- Cross occurs below zero: Early in potential uptrend
- Histogram turning positive: Confirms momentum shift
MACD Crossover Screen
MACD line crossed above signal line (today or yesterday)
MACD histogram positive and rising
Price above 50-day SMA
Volume > 50-day average
This captures early momentum shifts in uptrending stocks.
MACD Zero Line Cross
Stronger trend confirmation:
- MACD line crossing above zero
- Signal line following above zero
- Confirms short-term moving average now above long-term
- Stronger signal than just signal line crossover
MACD Histogram Divergence
Early warning of trend changes:
- Price making higher highs
- MACD histogram making lower highs
- Indicates momentum fading
- Warning of potential reversal
MACD settings: Standard settings are 12, 26, 9 (fast, slow, signal). Some traders use 8, 17, 9 for faster signals or 19, 39, 9 for smoother, longer-term signals.
Moving Average Screeners
Moving averages smooth price data to identify trends and support/resistance levels.
Golden Cross Screen
50-day SMA crosses above 200-day SMA:
- 50-day SMA > 200-day SMA
- 50-day was below 200-day 5 days ago
- Price above both moving averages
- Volume confirmation above average
Death Cross Warning
50-day SMA crosses below 200-day SMA:
- 50-day SMA < 200-day SMA
- 50-day was above 200-day 5 days ago
- Often signals extended downtrend beginning
Pullback to Moving Average
Find stocks pulling back to support:
- Price within 2% of 20-day SMA
- 20-day SMA rising
- Price above 50-day and 200-day SMA
- RSI between 40-60 (not overbought or oversold)
Moving Average Pullback Screen
Price within 3% of rising 20-day SMA
20-day SMA > 50-day SMA > 200-day SMA
Price touched or crossed below 20-day in last 3 days
RSI > 40
This finds uptrending stocks at short-term support.
Combined Indicator Screens
Momentum Alignment Screen
Multiple indicators confirming bullish momentum:
- RSI > 50 and < 70
- MACD above signal line
- Price above 20, 50, and 200-day SMA
- 20-day SMA above 50-day SMA
- Volume above 50-day average
Reversal Setup Screen
Potential bottom forming:
- RSI < 35 but rising from below 30
- MACD histogram turning less negative
- Price at or near 200-day SMA
- Volume spike (potential capitulation)
Breakout Confirmation Screen
Technical breakout with indicator support:
- Price at new 20-day high
- RSI between 55-75
- MACD positive and above signal line
- Volume > 150% of average
- Price above all major moving averages
Indicator Parameter Variations
Short-Term Trading
- RSI(7) instead of RSI(14)
- MACD (8, 17, 9) instead of (12, 26, 9)
- 10/20-day moving averages
- More signals, more noise
Swing Trading
- RSI(14) standard
- MACD (12, 26, 9) standard
- 20/50-day moving averages
- Balanced signals and reliability
Position Trading
- RSI(21) for smoother readings
- MACD (19, 39, 9) for longer trends
- 50/200-day moving averages
- Fewer signals, higher quality
Complete Technical Screen Library
Bullish Setup (Swing Trade)
- Market cap > $500 million
- Average volume > 500,000
- Price > 50-day SMA > 200-day SMA
- Price within 5% of 52-week high
- RSI(14) between 50-65
- MACD above signal line
- Current volume > 100% of average
Mean Reversion (Bounce Trade)
- Market cap > $1 billion
- Price > 200-day SMA (uptrend)
- Price < 20-day SMA (short-term weakness)
- RSI(14) < 35
- Price at least 5% below recent high
- No earnings within 14 days
Trend Following
- Price > 10-day SMA > 20-day SMA > 50-day SMA
- MACD > 0
- RSI > 50
- ADX > 25 (trending)
- New 20-day high in last 5 days
Backtesting tip: Before trading any screen, backtest it on historical data. A screen that looks good today may have poor historical performance. Track win rate, average gain/loss, and maximum drawdown.
Common Screening Mistakes
- Too many filters: Returning zero results
- Ignoring volume: Signals without volume often fail
- Over-optimization: Curve-fitting to past data
- Ignoring market context: Bearish screens in bull markets
- No exit criteria: Know when to sell before you buy
Track Your Technical Trades
Pro Trader Dashboard helps you analyze which technical setups work best for your trading style. Track entries, exits, and optimize your screens.
Summary
Technical screeners using RSI, MACD, and moving averages help systematically find trading opportunities. RSI identifies oversold bounces and momentum shifts. MACD catches trend changes through crossovers and divergences. Moving averages define trends and provide support/resistance levels. The best screens combine multiple indicators for confirmation while keeping enough flexibility to return actionable results. Always backtest screens and include volume confirmation for higher-probability setups.
Learn more: RSI indicator guide, MACD explained, and moving averages guide.