How to screen for and find Trending Stocks in LESS than 5 minutes

 Here is how I find trending stocks in less than 5 minutes every weekend

I use a method similar to the method used by Matthew Kratter in his excellent book [Rocket Stocks].

[Note: DreamTai is not affiliated to Matthew Krater]

You need to use Finviz, which is a free website to screen for stocks

1. Finviz.com for screening stocks

https://finviz.com/screener.ashx

Theory

All good trending stocks keep on moving to new highs ..That is..they just keep on going higher and higher.

So, we should search for stocks which are hitting 52 week high as initial screener.

 Besides this, we should also search for stocks which have more than 10% of total available stock quantity sold short. When the stock moves up, the short sellers will be forced to buy back the stock. This will make the stocks zoom up faster.

Also, we search for small capital stocks which are not yet under the radar of hedge funds and big institutions.These are stocks with market capitalization under $10 billion.

Also, the stocks should be trending. That is, the stock should be above the 50 day moving average and 200 day moving average.

After you filter these stocks, enter these stocks in your watchlist in DreamTai.

Find out those stocks which have DreamTai Power Ranking ABOVE 3.

These stocks have huge bullish volume.

Then, make a decision on whether you want to buy these stocks. Make sure that you risk less than 2 percent of your total capital in any trade.

Keep checking for such trending stocks every weekend.

You do not need to do this daily.

Stock Screening in Action:

Here is stock screening done on July 25, 2021

1. Go to FinViz.com stock screener

https://finviz.com/screener.ashx

2. Add the following filters

a. Market Cap under $10 billion

b. Float Short Over 10 percent

c.. Go to Technicals Tab

52 Week High Low has New High

d. Price above 50 day moving average

e. 200 day moving average is below 50 day moving average

f. Get the initial filtered list and input them in DreamTai

I got seven stocks (July 25, 2021)

I added these stocks to DreamTai watchlist.

g. Only select stocks with Power Ranking Greater than 3

There are 5 stocks with Power Ranking greater than 3

 

• CNTB
• CRTX
• RPD
• BCYC
• WRLD

 

h. Research these shortlisted stocks and make a Trading Decision to buy or do nothing

Do furthur research on these stocks and then make a decision if you want to buy or not.

If you do decide to buy, make sure that you risk less than 2 percent of your total capital and you place stop loss.