Trending Stocks
Trending stocks scans for top trending stocks today trading on NASDAQ, NYSE and AMEX. Stocks trending up, making new highs, gaining momentum, or bounce from support are on this list.
Follow the below steps on how to find trending stocks.
Trending Stocks Today
The top trending stocks today is an useful list for swing traders who are looking for price actions for short term trading.
Trend following is a popular trading strategy and this trending stocks screener will help trend traders find stocks to watch.
The best trending stocks today list is updated daily after market close. Start scanning for trending stocks with our trending stock scanner today.
Last Updated Aug 3, 2020
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How to Trade Trading Stocks
Trade with the trend is a powerful strategy to capture gains and make money in the stock market. Traders enter long positions when they spot stocks that are trending upwards, and exit the position when the trend is broken.
Traders use trend lines to determine whether or not a stock is in an uptrend.
What is an Uptrend
Following figure shows how an uptrend looks like. To form an uptrend, the following conditions must be met.
1. Each time a stock rally must reach a higher point than the preceding high.
2. Each time the stock decline must reach a higher point than the preceding low.
3. It is called higher highs and higher lows.
Traders use trend lines to determine when is a good time to get on a trade. On an uptrend, a trend line is drawn by connecting two or more nearby bottoms or higher lows. A trend that connects more dots is considered stronger than a trend that connects only two dots. The longer the trend, the better it is because the trend would be considered a proven trend.
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Trend Following Strategy
Trend following strategy is a powerful strategy that many traders use to trade stocks. One strategy to trade trending stocks is to use multiple time frames and to trade only the stocks with an uptrend in the longer time frame.
For example, if you are swing trader, you will most likely use daily charts. To use the multiple time frame, you would want to check if the stock is in an uptrend on a weekly chart.
For day traders who use intraday charts to find entries, you would use a daily chart to ensure the stock is in an uptrend.
Swing Trade
Let's take a look at a real stock example for swing trading. We will be only trading stocks that are in a longer term uptrend. The weekly chart for AMD is in an uptrend connecting four higher lows which meets our condition of an uptrend.
We will then use the daily chart to find an optimal point for entry, preferably nearing the trend line of the weekly chart with a price point around $45 per share.
Stock to Watch
Let's study the chart of the Microsoft stock. The stock has risen nicely for the past few years and it has shown up on our stocks to watch list constantly.
The weekly chart for MSFT is pointing upward so the long term trend looks promising.
However, the stock is near its resistance and it may pull back temporary,
so a better buy entry might be to get in when the stock drops to its trend line or after it break its all time all to ride the momentum.
At this point, the best course of action for short term traders is to watch this stock and not take any action. We do not want to chase a stock even though the stock is still trending up,
we want to buy and sell at optimal points when our risk and reward ratio is good.
Day Trade
If we were to day trade a stock, we want to check if the daily chart of the stock is in an uptrend. For example, the SHOP is a stock we would day trade with because the it's daily chart shows a long term uptrend. By limiting ourselves with only the stocks that are in an uptrend, we increase our odds of picking a winner than a loser.
Profit Taken
There are a few strategies for profit taking. One is to ride the trend, so we will stay in the trend as long as the stock is still within the trend line on the longer term chart. Another strategy would be to set a percentage target, as soon as you hit your price target, you would sell the stock and move on to the next trade. A third strategy is to sell half of your positions to lock in a profit and then let the other half to ride the trend.
Stop Loss
We should always use a stop loss to protect us in case the trade doesn't work out the way we wanted it to. Since we want to always place our trades near the trend line, we need to set our stop loss a few percentage point below the trend line.
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How to Find Trending Stocks
There are many ways that you can find trending stocks, one of the best ways is to use a trending stocks screener which is exactly what's showing above. You get a list of trending stocks, and the list is updated each and every market day. You can also find trending stocks through the following screeners.
Uptrend Stocks - the uptrend stocks shows a list of stocks that are in an uptrend.
52 Week High Stocks - is a list of stocks that are trading at their 52 week highs.
best tech stocks - is a list of recent top performing tech stocks. If you trade tech stocks, this is where you will go to find tech stocks that are making explosive moves.
best performing stocks - shows a list of the top performing stocks for the year.
Overbought stocks - The RSI indicator is showing these stocks as overbought. Keep in mind, some strong stocks may be in the overbought zone for a very long time.
Swing Trading Screener - find trending stocks with any custom technical indicator or chart pattern that you prefer.
What is a Downtrend
Downtrend is exact the opposite of an uptrend. Many traders use downtrend to short a stock, and some traders use downtrend to pick up bargains.
Following figure shows how a downtrend looks like. To form a downtrend, the following conditions must be met.
1. Each time a stock declines to a low point, it must be lower than the preceding low.
2. Each time it rallies must stops at a lower level than the preceding rally.
3. It is called lower lows and lower highs
On a downtrend, a trend line is drawn by connecting two or more nearby tops or lower highs as shown below. The longer the down trend, the stronger it is the trend.
To short a stock using the trend trading strategy is to go short whenever the stock rallies to the lower high or when it touches the trend line. We also need to have a stop loss to cover our position in case the trade goes against us and goes above the trend line.
Following is a few possible ways to find stocks in a downtrend.
52 Week Low Stocks - find stocks that are trading at a new 52 week low.
oversold stocks - stocks that are oversold based on the RSI technical indicator.
Trending Penny Stocks
This list does not include penny stocks. For those who are interested in trending penny stocks, check out the penny stock scanner.
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