Finviz and Technical Analysis


So with the market soaring like it has lately, I’ve been monitoring and watching the stock market a lot more.  I still have much to learn about valuation but I have read a few books on technical analysis.  One of those books is Technical Analysis Using Multiple Timeframes by Brian Shannon.  It’s a great book that talks about using technical analysis and modifying what you look at based on your trading habits and timeframe.  By reading it, I’ve figured out that I’m not a short term trader by any means, but I want to be involved frequently.  So I’m more of a medium term trader – maybe a trade every week or two.  That also gives me a better chart to read and I can try to time my entrances and exits better.  Still getting used to it, but I’m starting to see the patterns.

I tried to use my trading platforms to draw charts for each of my stocks but I now use a much easier alternative.  Enter Finviz.  A great, free stock site full of great information on individual stocks – charts, a stock screener, heat maps, gainers/losers, relevant earnings announcements.  It’s really amazing the kind of information you can get for free from their site.  They do have an Elite platform that is a paid portion – but I haven’t found the need to use that just yet.  Maybe if I get more familiar with valuations – then I think the EPS, P/Es, forward P/Es, etc. will mean more to me.

But the greatest thing about Finviz is the charting.  Based on my trading habit, I can pull up a chart on any stock and it will automatically draw the relevant chart lines that I’m interested.  It has MAs, but it will also draw the channels or trendlines that you can follow to time your entries.  Or to monitor if a stock is hitting resistance or support, or breaking out.  I haven’t trusted my analysis enough lately but had I, there would have been some winners.  Of course, everything is hindsight so I might not have hit every point perfectly, but I think I need to have more confidence in my picks.

Just take a look at some of these examples: AAPL and F.

On AAPL, this is the recent chart so some of the lines have been redrawn but back in the middle of December 2011, the stock hit the bottom trendline at about 380.  It bounced right off that and started its ascension into the stratosphere.  That was my first miss.  Based on this recent chart – if you were gutsy enough, you might have purchased around 460 when it pushed right through the upper trendline and you would be sitting on almost 9% in profit now.  And all this for just bringing up the chart in Finviz and making a call.  No messing around with drawing your own lines.  It’s all right there.

Same with F.  Back in mid-December, the trendlines were different but it broke the upper trendline around 11, which is where I bought some.  Now it’s sitting up by 12.48.  Again, easy to see, easy to make the decision.

So I’m pimping it pretty hard but I have no financial gain/stake in this.  It’s just damn easy.  So try out Finviz.  And subscribe to the Elite if you need it.  Or if you just want to support them.  If I can make more trading, I might just do that.

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