FREE DOWNLOAD

The 5-minute mental check-in that helps you focus on the right things in trading and start winning more consistently, even if you are terrible at picking stocks!

How to Use Fundamental & Technical Analysis the Right Way to Scan for Stocks

Listen to Our Podcast In Your Favorite Platform

In today’s five-minute stock tip segment, we’ll delve into the art of combining fundamental and technical analyses to make sound trading decisions. While many traders often gravitate solely towards technical analysis, this one-dimensional approach can sometimes yield suboptimal results. To address this issue, we will guide you through the process of harmoniously using both fundamental and technical analyses to gain a more holistic understanding of stock evaluation. Let’s begin.

Fundamental Analysis: Assessing Viability

Before delving into technical analysis, it is crucial to ensure that the stocks you’re considering are worth your attention. This is where fundamental analysis plays a pivotal role. By scrutinizing a stock’s fundamental aspects, you can determine its suitability for trading. Let’s walk through this step-by-step process.

  1. Initial Filtering for Market Viability

Start by selecting all U.S. stocks as your initial pool of options. While this provides a comprehensive list, it is important to recognize that not all stocks are suitable for trading. In fact, many of them may not even be considered viable due to their extremely low prices, often as low as a few cents.

  1. Refinement with Fundamental Analysis

To narrow down the list further, consider filtering for stocks listed in the S&P 500 index. This step narrows your focus to well-established and potentially more stable companies, increasing the likelihood of finding attractive trading options.

  1. Incorporating Market Capitalization

Take your stock list one step further by filtering stocks based on their market capitalization. A higher market capitalization typically indicates a more stable and established company. By setting a minimum market cap threshold, you can focus on larger and potentially more appealing stocks.

Technical Analysis: Timing Your Trades

With a refined list of potentially viable stocks established through fundamental analysis, it’s time to apply technical analysis to pinpoint the optimal entry and exit points for your trades.

  1. Configuring Technical Indicators

Set up your technical indicators on your trading platform. In this instance, we will use the 89-day exponential moving average (EMA) as our primary technical indicator. This moving average is valuable for identifying potential trading opportunities.

  1. Identifying Stocks Crossing the 89-Day EMA

After adding the 89-day EMA indicator, you can now scan for stocks that are crossing above this moving average. Such crossovers often indicate a bullish signal, suggesting it may be an opportune moment to consider purchasing the stock.

  1. Perfecting Your Timing

Refine your search further by specifying conditions to identify stocks that have recently crossed above the 89-day EMA, typically within the last few bars or days. This approach helps you pinpoint stocks currently exhibiting the desired technical patterns for trading.

The Synergy of Fundamental and Technical Analysis

Successful stock analysis involves blending both fundamental and technical analyses. While fundamental analysis sifts out non-viable stocks, technical analysis provides the timing for entry and exit points. By combining these two complementary approaches, you can make well-informed trading decisions.

Conclusion

Mastery of stock analysis requires a dual-pronged approach: fundamental analysis to assess viability and technical analysis to perfect your timing. By following these steps and utilizing the capabilities of your trading platform, you can efficiently sift through stocks and make informed trading decisions. For further guidance and access to valuable learning resources, we invite you to explore our webinar website, tradingwebinars.co, where you can access webinars covering various aspects of trading and expand your knowledge in the field. Thank you for joining us, and we look forward to seeing you in our next video. Take care.

In this class we will focus at looking at the technicals, learning about charts, how to check for support resistance, strength of the move, indicators, understanding price movements, ABCD patterns, and more! Ready to take your technical analysis to the next level? ​

In this live class, you will learn the right way to trade single options. You will learn how to choose which single options to buy, how to reduce the theta problem, and how to create a rocket strategy to trading single options.

If you wanted to learn the ins and outs to adjusting options, this session will go in detail about how to adjust your options trades. We will cover different ways to adjust, how to adjust, different methods, pros and cons, and what to do as positions go against you.

Ready to Learn Profitable

Strategies to Trade Stocks?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

Then sign up to get our free educational videos!

FREE NEWSLETTER

Get Access to All Secret Files & Libraries for FREE!

To get access to all of my freebies, enter your email below & I will send you a list of all my freebies!

ALL FREEBIES

4575

BUYING OR BUILDING A

TRADING COMPUTER

In this FREE video series we cover exactly what kind of trading computer or workstation you should buy or build. From the number of monitors to the processor and more! 

FREE MINI COURSE

Reaching $1,000,000
in The Stock Market!

Want to see for yourself how long it will take you to reach $1,000,000 based on your personal return? Then download my Excel cheatsheet for FREE to see and play with the numbers!

FREE SPREADSHEET

5 DIFFERENT IRON

CONDOR SETUPS

In this free video, I'll show you 5 powerful iron condor setups & strategies you can use!

FREE VIDEO

FREE 20 MIN CALL WITH SASHA

Want to work with Sasha for 3+ months & learn how to trade options the right way?

DISCOVERY CALL!

To get started, enter your email address and we will send you details on how to book your session!

NEW TO OPTIONS TRADING?

Unlock the World of Trading Options in just 4 Weeks, with our FREE Options Trading

for Beginners Mini Course.

FREE MINI COURSE

HOW TO SELL

OPTION PUTS

Maximize your profits by mastering the art of selling option puts with our free mini course!

FREE MINI COURSE!

How to Trade

Covered Calls

Learn how to make Weekly and Monthly Income by Trading Covered Calls, with our new mini-course!

FREE MINI COURSE!

OPTION TRADING GEEKS CHEATSHEET

Download my options greeks worksheet and I will also send you 6+ other freebies as well!

Enter your email below to get the secret link.

3 POWERFUL OPTION

VERTICAL STRATEGIES

Discover 3 super powerful vertical

strategies & how to set them up!

FREE VIDEO

THINKORSWIM

OPTIONS PLATFORM

Learn to see how I personally use the ThinkorSwim platform to trading options and what are some of the tips and tricks to using this platform efficiently!

VIDEO TRAINING

Top 15 Dividend Stocks for Retirement in 2023

Download our list of the best stocks for retirement. Simply enter your email address below to get the PDF!

HOW TO FIND

HOT STOCKS!

Get the free checklist to help you find

the best stocks to trade, quick & easy!

FREE CHECKLIST

4608

OPTION STRATEGIES

Enter your email address below and get access to our video strategy session on 25+ option strategies and how to set them up!

25