With the increase in awareness among investors and traders, the demand for tools is also increasing. One of the main tools is Stock Screeners.
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What is a Stock Screener?
A Stock Screener is a tool that helps an investor to screen ideas and opportunities in the Stock Market. It removes all noise and surfaces only what is required per the Screener’s objective. For example, an intraday breakout screener will surface only those stocks that give an intraday breakout. Likewise, a screener can have multiple screening criteria. Investors based on their risk profile and investment strategy choose a screener. Broadly screeners are classified into three categories:
Why a Stock Screener is Useful?
Stock screener is useful as it helps investors to filter out not so important stocks based on the current objective. For example if investors are looking for stocks for bullish swing investing then a screeners displaying stocks having high probability to swing in bullish direction will filter out rest of the other stocks and keep focus on stocks building bullish patterns.
Patterns Based Screeners
- Bullish Screener
- Intraday Breakout Stocks – Screener that would be used by intraday traders and would likely break out during the day.
- Breakout Stocks for Tomorrow – Screener that would be used by intraday traders to create their watch list for next day, to break out.
- Yearly Breakout Stocks – Screener that would be used by investors with potential to hold from days to months. Typically buyers are getting activated and breaking the resistance price level (zone). Before this break out most of the time Sellers have released supply at this level.
- Multi-year Breakout Stocks – Screener that would be used by investors who like to capture bigger moves. These stocks are going to break the multi-year resistance zone. Typically at these resistance price levels (zone), Sellers have been getting activated and releasing supply when ever stock was reaching this price levels.
- 52 Weeks High Breakout Stocks – Screener that are showing list of stocks with breakout happening compared to last high made in 52 weeks or earlier.
- Swing Trading Stocks – Typically trend-riding investors use this screener to confirm their stocks are making higher highs and higher lows patterns in the market. As long as
- Bearish Screener
- Intraday Breakdown Stocks – Screener that would be used by intraday traders to short a stock that is breaking down during the day.
- Downtrend Stocks – Screener that would be used by traders and investors to take a short position in Futures of the stocks that are having a down trend.
- Sideways Screener
- Rangebound Stocks – Screener that would identify stocks that are in the sideways bounded within a range. Typically traders take position at lower price level with tight stop loss and exit at the higher price level. If these are FnOs then sideways option strategies would work better.
Fundamental based Screeners
These screeners may have multiple parameters to screen stocks. Some of the ideas to screen on the fundamental aspects could be:
- Consistent sales growth in last few quarters to years.
- Consistent earnings increase in past few quarters to years.
- Cash-rich companies with net positive cash in account
- Low debt or reducing debt in the companies
It could be a combination of multiple parameters or logics.
List of Top Stock Screeners for Stock Market
- Screener.in ideal for screening stocks based on fundamental data like revenue, profit, debt, promoters holdings etc.
- Chartink this screener is ideal for screening stocks based on technical analysis parameters like RSI, breakouts etc.
- StockEdge This screener is ideal for screening stocks based on overall analytics on the stock data like chart patterns, price, volume, etc.
- Sentiments Decoder This screener is ideal for screening stocks based on multi-timeframe trend analysis and insights. It also gives forward-looking view with some probability.
- Finviz This screener is ideal for global as well as Indian stock screening based on additional parameters like analyst ratings etc.
Conclusion
In conclusion, most of the screeners are in the market with their proprietary scores and signals to identify a list of stocks. Ultimately in the market investor or a trader makes money when he rides the trend. As we have heard ‘Trend is your friend’, getting on the trend at the right time and exiting when the trend wave is over will get an investor the required returns on his/her investment.