Below, we’ll answer the above question and more. We’ll help you find the best momentum scanner for your trading needs and what to look out for when using it.
What is a Stock Momentum Scanner?
A stock momentum scanner is a powerful tool day traders use to identify stocks experiencing significant, but short-term price movements. Thousands of stocks are scanned in real-time using preset criteria to identify stocks showing strong upward or downward momentum.
The Benefits of Using a Stock Momentum Scanner
Day traders who use a good stock momentum scanner have the advantage of:
- Quickly identifying stocks experiencing strong momentum in real-time and before the momentum fades.
- Filtering out stocks not showing significant price movements, thus saving time and effort in the trading process.
- Analyzing at which points the market will reverse.
Top Stock Momentum Scanners for Day Traders
Several stock momentum scanners are available in the market for day traders. We discuss two of the top ones below.
- Momentum Scanner TradingView: This is one of the most popular momentum scanners around that includes charting and technical analysis.
- Thinkorswim Momentum Scanner: With the momentum scanner Thinkorswim tool, you get an overview of stocks with significant momentum in real time.
Using a Free Momentum Scanner to Improve Your Trading Strategy
Paid stock momentum scanners offer a wide range of features and customization options. However, free versions also provide valuable information to help traders make strategic decisions. If you’re new to trading, try out a free version first to understand how they work.
How to Find High of Day Momentum Stocks with a Scanner
Day traders focus on high of day momentum scanner tools to find stocks that have reached their highest price level in a day.
Here’s how to use high of the day momentum scanner:
- Set up the scanner criteria that include price change.
- Run the scanner to filter out stocks that aren’t in your range of high prices.
- Review the results to look for patterns and consistency in price increases and high trade volumes.