Introduction
In this tutorial, we’re diving into an essential tool for traders— the Power Earnings Gap & Earnings/Sales Acceleration Screener for TradingView. This tool is pivotal for those looking to leverage earnings announcements to find potential trading opportunities. We’ll explore how to set up searches, define parameters, and interpret results for optimal trading strategies.
Understanding the Power Earnings Gap Screener
The Power Earnings Gap Screener allows traders to search for gaps in stock prices following earnings announcements. One way to set this up is by specifying a search range, which determines how many bars (or days) back in time to examine for a gap. Setting the range to five, for example, will look five days into the past. There’s also an option to search the current bar only, specifically if earnings were announced pre-market.
Another critical setting is the minimum gap up, which defaults to a 10% increase. You can also determine the minimum volume percent change over a 50-day average, set a positive earnings surprise threshold, and require a percentage for a closing range. Each of these criteria helps narrow down the stocks that meet your specific trading needs.
Advanced Customization
To enhance your screener, you can set additional criteria, such as ensuring a gap up bar requirement, or setting the open above the prior day’s high. Toggling these settings provides flexibility in how you identify potential gaps. For example, when removing the closing range requirement, you might find opportunities you could have missed, as demonstrated with the Celsius example. Despite closing at the bottom of its range, it continued an upward trajectory.
Exploring Earnings Acceleration
The tutorial also discusses earnings acceleration, another tool for identifying promising stocks. By setting parameters such as EPS acceleration, the screener can further refine results. When combined with sales acceleration, it sharpens the focus on stocks showing strong performance over the past quarters.
Practical Application and Results
Turning on these options can significantly decrease the number of symbols from which to choose, indicating more selective criteria. For instance, employing both earnings and sales acceleration brought the count down from 65 symbols to six. This refined focus hones in on stocks that not only experience power earnings gaps but also consistent, and accelerating, sales and earnings growth.
Pine Screener Tutorials
If you’d like to learn more about screening for stocks in TradingView, check out the collection of Pine Screener Video Tutorials.