How to Set Up a Stock Scanner for Swing Trading

Stocks screener tools and stock scanners play a crucial role in swing trading by identifying stocks with potential short-term price movements. While a stocks screener helps filter stocks based on specific parameters, a stock scanner provides real-time alerts to track momentum shifts. Additionally, using a calculator for CAGR (Compound Annual Growth Rate) can help traders measure long-term stock growth while focusing on short-term trading opportunities.

In this guide, we’ll walk through the steps to set up a stock scanner for swing trading and maximize trading opportunities.

Step 1: Choose the Right Stock Scanner

Before setting up your stock scanner, selecting the right platform is essential. Some of the best scanners for swing trading include:

TradingView – Offers custom scans and technical indicators.
Finviz Elite – Provides real-time scanning and fundamental filters.
Trade Ideas – Uses AI-based scanning for momentum trading.
Benzinga Pro – Great for news-based swing trading alerts.

Step 2: Define Your Swing Trading Strategy

Your scanner setup should align with your swing trading strategy. Some common approaches include:

✔ Momentum Trading – Finding stocks with strong price movement.
✔ Breakout Trading – Identifying stocks breaking key resistance levels.
✔ Pullback Trading – Scanning for stocks retracing to support zones.

Step 3: Set Up Technical Indicators for Screening

A good stock scanner should filter stocks based on technical indicators that align with swing trading. Common filters include:

Relative Strength Index (RSI) – Look for RSI between 30-50 for dip buys or above 70 for overbought conditions.
Moving Averages (MA) – Scan for stocks crossing above the 50-day or 200-day moving average.
Volume Surge – Stocks with volume increasing by 2x-3x the average.
MACD Crossover – Stocks where the MACD line crosses above the signal line.

Step 4: Apply Fundamental Filters (Optional)

While swing trading focuses on price movements, combining fundamental filters can help refine stock selection:

✔ Market Cap – Mid-cap and large-cap stocks tend to have strong liquidity.
✔ Earnings Growth – Companies with consistent earnings growth attract momentum traders.
✔ Volatility – Stocks with an ATR (Average True Range) above 2% move enough for profitable swings.

Step 5: Set Up Real-Time Alerts

Once you’ve applied your filters, enable real-time alerts to receive notifications when stocks meet your criteria. Stock scanners like TradingView and Trade Ideas offer customizable alerts via email, SMS, or push notifications.

Step 6: Backtest and Adjust Your Scanner

Before using the scanner for live trading:

Backtest historical performance to see if the criteria work.
Refine filters if too few or too many stocks appear.
Adjust settings based on market conditions (e.g., increasing volume thresholds during high volatility).

Final Thoughts

Setting up a stock scanner for swing trading helps traders spot high-potential stocks and take advantage of short-term price movements. Whether you use a stocks screener for initial filtering or a real-time stock scanner, combining technical indicators and volume analysis is key to success.

Additionally, for long-term investors, using a calculator for CAGR can help assess long-term growth potential while executing short-term swing trades. By leveraging the right tools, swing traders can improve trade execution and maximize profit opportunities.