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You might have wondered how some traders find strong-trending stocks so quickly. While many traders search randomly, experienced traders use the market screeners.
A market screener helps filter stocks based on specific technical or fundamental characteristics. It helps traders to shortlist high-probability opportunities using predefined criteria. Screeners can detect early signs of shifts in momentum, volume, and structure that most traders overlook.
What is a market screener?
A market screener filters out the stocks based on selected parameters like price, volume, technical indicators, trend direction, or even financial ratios.
For example, if you want to search for the stocks that are:
- Trading above the 50 EMA
- RSI above 60
- Volume greater than the 20-day average
- Price near a 52-week high
Then you just need to enter these parameters in the screener, and it will search for you. Instead of predicting market direction, a screener narrows down thousands of stocks to a manageable shortlist. It removes emotional bias and saves time by focusing only on stocks that meet specific conditions.
Key signals market screeners detect early
Market screeners are capable of scanning thousands of stocks within seconds and showing those stocks which are meeting the criteria. Below are some key signals that screeners can capture efficiently.
1. Early momentum
Many stocks begin forming higher highs and higher lows silently before a visible breakout occurs. When the move becomes visible, a large portion of the rally may already be over. Market screeners have this ability to detect such early signs.
Screeners can catch:
- RSI crossing above 60
- Price moving above short-term moving averages
- Stocks making new 20-day highs
- Increasing price with steady volume
Most traders notice the stock after a strong breakout, but screeners can help to identify it early.
2. Volume spikes that signal institutional activity
When large players accumulate positions, generally volume increases while the prices don’t move much. Such unusual volume spikes signal institutional activity.
A market screener can filter for:
- Volume 2x or 3x the daily average
- Sudden delivery volume increases
- Volume breakout above recent ranges
Most traders miss out on these early volume accumulations. Screeners highlight stocks such as TCS share price where participation is rising, even if the price hasn’t made a dramatic move yet.
3. Relative strength vs the market
Relative strength shows how a stock is performing compared to the benchmark index. A strong stock continues rising even when the broader market is flat or weak.
Screeners can filter:
- Stocks outperforming the index over the past month
- Stocks trading near 52-week highs
- Relative strength ratings above a certain threshold
Traders need to understand that not all rising stocks are strong. Screeners help you identify strong stocks that are outperforming the overall market.
4. Stocks near key breakout levels
Stocks usually take a consolidation period before a breakout happens.
Screeners can detect:
- Stocks trading within 2–3% of 52-week highs
- Tight trading ranges
- Volatility contraction setups
- Price consolidating above key moving averages
Without a screener, traders may randomly browse charts and miss these structured setups forming in the background. Screeners systematically highlight stocks preparing for potential expansion.
How to use screeners effectively
Here are some simple steps through which you can use market screeners more effectively.
- Start with 2–3 simple filters
- Combine trend + volume conditions
- Avoid overcomplicating criteria
- Always verify shortlisted stocks on charts
- Adjust filters depending on the market environment
Conclusion
Many traders are unaware of market screeners. Market screeners provide a structured advantage by identifying opportunities that many traders overlook. They detect early momentum shifts, unusual volume activity, relative strength leadership, and breakout setups before they become obvious.
Screeners do not guarantee profits, but they can increase your efficiency drastically. If traders learn to use market screeners, they can spot clues before the majority notices.