This is an evolving post that’ll keep updating based on feedback and research.
So keep checking back for more:
RULES YOU MUST FOLLOW
1.Never rely on what any screener throws up without checking what your trade setup says. You can use this trade setup if you haven’t developed one. At least 2 indicators must confirm the trend.
2. If possible, add a Volatility indicator while studying the stock. Buying or Shorting during periods of low volatility can yield big gains, while trading during periods of high volatility may or may not succeed.
3. I use Chartink for creating screeners. The free version is 5 minutes delayed, therefore be very careful if you are working intraday or short term.
4. Chartink default candle period is set to 1-Day, and therefore you must watch shorter (15M, 30M, 1H) periods in the live market to know if the trend has changed and the longer 1Week period to predict the continuity of the trend.
5. Use technical screeners for Indices and Future stocks. NOT FOR CASH STOCKS.
6. For Cash stocks use Fundamental Screeners and then confirm trend by checking charts (use the setup above).
7. Do not shortlist penny stocks or stocks that are characterized by low volumes or are prone to circuits.
LIST OF SCREENERS BASED ON TECHNICAL INDICATORS
The ADX is a powerful indicator and when the DI+ crosses above the DI- line, it implies that highs are getting higher and the lows are getting lower as well.
It is a bullish signal. (Works well when trend is bullish)
For bearish stocks, turn it around to
When a shorter period EMA crosses a longer period EMA, it indicates bullishness.
There are many popular configurations.
In the example above, I have used EMA 5 and EMA 10 because 5 represents the number of trading days in a week. 10 is 2 weeks.
The shorter crossovers are to be used for 1 day trading while the longer crossovers can be used for short-long term trading or investment.
Here are some other popular EMA crossovers:
10 EMA crosses above 20 EMA (swing trades)
20 EMA crosses above 50 EMA (short-medium trades)
50 EMA crosses above 200 EMA (medium-long trades) (this crossover is also referred to as the Golden Cross)
For bearish stocks, reverse the conditions (Crosses Below, instead of Crosses Above).
Here is one tried and tested formula that has been back tested for intra day trades.
It has been written by Rajen Vyas – a very talented technical chartist and helpful person, whom you must follow on Twitter.
The formula is very simple.
When the price of a stock is above the its 50 DMA, and if the price crosses above its 5 DMA, it is an intra-day buy.
Consequently, when the price of a stock is below the its 50 DMA, and if the price falls below its 5 DMA, it is an intra-day sell.
Candle Periods: Use 30 Minute for Indices and 1 Hour for FNO stocks
Expected gains: 2%; SL: 0.5%.
Create your own screener by applying the configuration in the image above. You can reverse the conditions to discover bearish stocks.
Accomplished TA Rajan Kamboj, has this to add to to this formula:
To avoid whipsaws one more condition can be added
DMA 5 and DMA 50 should be at least 2 % apart
This is how you can add this condition:
Here is a direct link to the scanner. There is no need to write the formula here and reinvent the wheel. You can copy it to your dashboard and play around with the configurations though.
(This post will evolve over time as I keep adding more screeners. Stay tuned.)