Let's talk about swing trading screeners. Specifically, TradingView's screener. You know, that thing that promises to magically filter stocks into gold nuggets ready for profit. I have a confession: I kind of love it.
Don't get me wrong. It's not perfect. But let's be real, what is in trading? Except maybe the crippling self-doubt. But for a quick and dirty way to find potential swing trade candidates, it's pretty darn good.
First, Let's Admit Some Truths
Here's my unpopular opinion: Most pre-built screeners are garbage. Seriously. They're either way too broad ("Stocks above $5!") or so specific ("RSI between 30 and 32 at exactly 2:17 PM on a Tuesday!") that you end up with, like, one stock. And it's probably a pump and dump scheme anyway.
So, the first step is to ignore all those fancy "Top Gainers" or "Most Oversold" pre-sets. Resist the urge! Think of it as ignoring that tempting slice of cake in the fridge. Okay, maybe not that hard. But close.
The Power is in the Customization, Baby!
That's where TradingView's screener shines. You get to build your own! It's like Legos for traders. Except instead of building a Millennium Falcon, you're building a list of stocks that might (hopefully, maybe, with a bit of luck) make you some money.
Start simple. Don't go overboard. A few basic filters are better than a million complex ones that give you zero results. I usually start with market cap. I like mine medium to large. Small caps can be fun, but they can also be... volatile. Let's just say my heart can't handle that kind of excitement anymore.
Then, I'll throw in some volume filters. I want to see stocks that are actually being traded, not just sitting there gathering dust. High volume generally means more liquidity, which means easier to get in and out of a trade. Less chance of getting stuck holding the bag when everyone else is running for the exits.
Indicators? Use Sparingly.
Okay, this is where things can get tricky. Everyone has their favorite indicators. Moving averages, RSI, MACD, the whole gang. And sure, they can be useful. But don't fall into the trap of thinking that an indicator is a magic crystal ball that tells you the future. Because it's not.
I use indicators to confirm what I'm already seeing in the price action. If the price is trending up, and the moving averages are confirming that trend, great! But I don't just blindly buy a stock because the RSI is below 30. That's just asking for trouble. Trust me, I've been there.
Use indicators as a guide, not a gospel. Think of them like your GPS. It can give you directions, but you still need to pay attention to the road.
The "Unpopular Opinion" Part
Here it is: The best indicator is the price chart itself. I know, shocking, right? But seriously, learn to read price action. Understand support and resistance levels. Identify trends. Look for patterns. All that stuff. The screener is just a tool to help you find potential candidates. It's not a replacement for actual analysis.
The screener can help you narrow down the field. Let's say you want to find stocks that are breaking out of a consolidation pattern. You can use the screener to find stocks that are trading near their 52-week highs, or that have recently crossed above a key moving average. But ultimately, you need to look at the chart and decide if the breakout is real, or just a fakeout.
Don't Be Afraid to Tweak
The screener is a work in progress. Don't be afraid to experiment with different filters and settings. See what works for you. What are you looking for? What suits your style? What gives you a good edge?
Backtest your strategies. Paper trade. Don't risk real money until you're confident that your screener and your analysis are actually giving you an edge. And remember, even the best strategies can fail. That's just part of the game. So, manage your risk, and don't get greedy.
So, there you have it. My love letter to the TradingView screener. It's not a perfect tool, but it's a darn good one. Just remember to use it wisely, and don't let it do all the thinking for you.
Now go forth and find some profitable trades! (And don't blame me if you lose money. I'm just a random person on the internet.)
