How To Find Stocks - Part Two

In the last installment of finding stocks I discussed the method known as Top Down, but lets face it that is one of many ways to find a stock.  You want find as many ways to find good trades as you possibly can and I leverage a lot of different methods.  A good trade set up is a good trades set up no matter how you get it.

I love finding stocks that have good technical setups, and there are two free places on the web that you can go to to look for a stock that is setting up technically, and these sites have their own scans.
StockCharts.com and Finviz.

Lets start with StockCharts  they have a predefined FREE scan on their website if you ever get their subscription service for charts they have a more detailed scanner but the free one is really good.

On their home page they have this links menu and where it says predefined scan results you click





It Groups its searches by indicators, candlesticks, and P&F chart Patterns.  I use mostly the Indicator and Candlestick patterns to find my trades.  It further divides it into Bullish and bearish patterns which is a nice feature.

The below is an example of the candlestick patterns search and what it looks like





As you can see it's separated into bullish and bearish patterns and then I can go over to the right and click on which index I want to look at and click on the number.  If  I click on the NYSE then I can see all the stocks on the NYSE that are forming bullish engulfing patterns.  Like today DOW was forming a bullish engulfing pattern. 

Then I would just do my analysis on this stock and its options to see if it would present a good trading opportunity.  Remember to be sure that as you are looking at stocks that they have enough trading volume.




The next website that has a really good search tool is Finviz.com, it also has charts and some additional search features that StockCharts does not have.

 To start your search you can click on the screener on the home page.



Then as you move into the screener you can click on the technical search, and there you have the ability to search by pattern, candlestick, and other choices.



So what I have shown you is two places that can scan different technical patterns quickly, but if you are just browsing through your charts and you see a chart pattern or support resistance or anything that looks like a strong technical pattern then dont be afraid to write it down as a possible trade.

In my next option trading blog on finding stocks I will share with you another way that I have found very useful in finding trade ideas. I’ll use a couple of examples where I have found stocks using the process. If you want to take a look at our current picks, register for the 14-Day Free Trial. You will have access to all of our trades and research.