How to Screen Volatile Stocks for Maximum Profit
Searching for the ultimate guide to screening volatile stocks for maximum profit? You just landed on the right place. With Finviz, you’ll uncover high-octane market movers in seconds and turn wild price swings into real gains.
If you’ve ever stared at a ticker flashing 10% up or down in minutes, you know the thrill—and the risk—of trading volatile stocks. I’ve spent years refining my approach, and I trust Finviz because it’s been the go-to stock screener for day traders, swing traders, and long-term investors who demand speed, clarity, and precision. Let’s dive into how you can harness volatility and protect your capital along the way.
Defining Volatile Stocks
Volatile stocks swing sharply in price over short periods. These rapid moves often result from earnings surprises, M&A rumors, sector rotations, or macroeconomic shocks. While the price action can feel chaotic, volatility also reveals profit potential for traders who know how to filter the noise.
Why Focus on Volatile Stocks?
- Higher Returns: Bigger price swings mean wider profit targets.
- Active Opportunities: Frequent entry and exit points suit dynamic traders.
- Market Sentiment: Volatility often signals shifts in investor psychology ahead of major trends.
Key Metrics to Filter Volatile Stocks
Before you jump into a screening platform, understand the metrics that distinguish true volatility from mere noise.
Beta
Beta measures a stock’s historical volatility relative to the broader market. A beta above 1 indicates above-average swings. Look for stocks with beta values between 1.5 and 3 to capture significant movement without extreme unpredictability.
Average True Range (ATR)
ATR quantifies the average price range over a set period. A rising ATR suggests expanding daily volatility. Use a minimum ATR threshold to avoid illiquid names that merely tick up and down in penny increments.
Volume Spikes
Sustained volume surges often precede or accompany big moves. Filter for stocks trading at least twice their 30-day average volume to confirm that volatility is backed by genuine market interest.
Gap Percentage
Price gaps—when a stock opens significantly above or below its prior close—drive instant volatility. Screening for gaps of 3% or more can highlight overnight news catalysts or breakout setups.
How to Use Finviz to Screen Volatile Stocks
Finviz streamlines your workflow with a powerful, intuitive screener. Here’s how to set it up:
- Open the Stock Screener tab in Finviz Elite for real-time quotes and extended hours data.
- Select the Technical filter group, then set Beta to “Over 1.5”.
- Under Price, choose stocks above \$5 to avoid micro-caps with erratic spreads.
- Add a Volume filter of “Over 500K” average to ensure liquidity.
- Under Performance, include “Gapped Up” or “Gapped Down” to capture overnight movers.
- Sort results by Average True Range to surface the most volatile names.
These simple settings deliver a concise watchlist of highly volatile setups ready for your analysis. Want to save these criteria and get instant alerts? Get Started with Finviz for Free Today and unlock advanced screening, custom filters, and push notifications.
Top Strategies for Trading Volatile Stocks
- Breakout Trades: Enter when price breaks above key resistance on strong volume.
- Pullback Entries: Buy dips into the 20- or 50-period moving average in an uptrend.
- Momentum Swings: Ride directional moves until technical indicators warn of exhaustion.
- Short-Term Reversals: Fade extreme intraday moves when RSI enters overbought or oversold zones.
Risk Management Tips
- Position Sizing: Never risk more than 1–2% of your capital on a single trade.
- Stop-Loss Orders: Place stops just beyond technical support or resistance to cap losses.
- Time Stops: If a trade stagnates, exit to free up capital for higher-probability setups.
- Diversify: Limit exposure to multiple volatile names at once to smooth your P&L curve.
Conclusion
Screening volatile stocks doesn’t have to be a guessing game. By zeroing in on beta, ATR, volume, and gap metrics—and using a platform like Finviz—you can build a dynamic list of high-volatility opportunities in minutes. Combine clear strategy rules, disciplined risk controls, and real-time alerts to turn wild price swings into consistent profits.
Get Started with Finviz for Free Today and take control of your volatile stocks screening process with one of the most powerful, ad-free stock screeners on the market.
