Lesson 3: Unlocking Hidden Gems: TradingView Screener Meets The Oracle
How to Filter for Undervalued Stocks and Pinpoint Perfect Entries Every Day
To Smart Investors,
To use The Oracle Indicator, you need to find some equities.
Places where to get potential targets:
The news. I recommend my daily newsletter → Anti-Clickbait News
TradingView Screener (this lesson😎)
My upcoming SaaS revolving around Options and Dark Pools (early 2025)
Let’s goooooooooo!!!
When searching for truly undervalued stocks, you need more than just one or two metrics—you need a complete ecosystem of indicators that balance valuation, growth, profitability, liquidity, and even market psychology.
Below, we’ll explore each filter in detail, explain how it narrows your results, and show you how to layer on The Oracle indicator for precision entries.
By the end, you will have a comprehensive approach that provides fresh daily trading or investing opportunities.
Get your TradingView Premium subscription if you haven’t it yet:
Go to: https://www.tradingview.com/screener/
This is how I set my screener and check it every morning:
Remember that you can save it all as a template.
Let’s go over it step-by-step:
1. P/E < 25
The Price-to-Earnings ratio (P/E) measures how much investors are willing to pay per dollar of the company’s earnings. A lower P/E generally indicates the stock could be undervalued—the market price hasn’t fully caught up to its current earnings.
Why 25?
Historically, a P/E above 25 starts to hint at inflated expectations. While certain high-growth tech companies may naturally push beyond this threshold, using P/E < 25 helps you filter out some riskier, potentially overpriced names.What to Watch Out For
Sometimes, a low P/E can be misleading if earnings are temporarily inflated or if the business is in a declining industry. That’s why we never rely solely on P/E.
2. PEG (TTM) < 1.5
While P/E focuses on current earnings, the Price/Earnings-to-Growth (PEG) ratio adds another dimension: future growth expectations. A PEG under 1.5 suggests the stock’s valuation remains attractive relative to its earnings growing quickly.
Why Incorporate Growth?
Valuation on its own doesn’t mean much if the company’s future prospects are weak. A low PEG ratio indicates a situation where the market hasn’t fully appreciated how fast earnings might increase.Potential Pitfalls
Growth projections can change rapidly with shifts in the economy, so a stock with a “perfect” PEG today might see that ratio spike if future earnings guidance disappoints.
3. Revenue Growth (TTM YoY) > 10%
A company’s top-line revenue provides a clearer picture of its product or service demand. While earnings can be massaged by cost-cutting, revenue is harder to fake—it’s the direct measure of how many dollars flow in.
Why 10%?
A robust double-digit growth rate indicates that the company is scaling up. This filter rules out slower-growing or stagnant businesses that might not support future stock price gains.Note on Cycles
Some industries—like energy or commodities—are highly cyclical. You might see a surge in revenue growth during certain market conditions, so always cross-check the broader sector context.
4. Net Margin (TTM) > 10%
Net margin tells you how much of each dollar in revenue translates into profit after all expenses. A > 10% margin typically suggests the company has solid pricing power, operational efficiency, or both.
Why Focus on Profitability?
You can have massive revenue, but the company won't produce healthy earnings if most of it is eaten up by costs. This threshold ensures you’re screening for businesses that can convert sales to real profits.Caution: Industry Norms
Different sectors have very different margins. Tech companies can often exceed 10% easily, while retail might struggle. Don’t dismiss a great retail or grocery chain because its margins are typically around 5%—but this filter helps raise the overall bar.
5. Market Cap > 100M
Market capitalization is a snapshot of the company’s total value on the stock market (share price × shares outstanding). Setting Market Cap > 100M avoids ultra-micro-cap or penny stocks, where you often encounter extreme volatility or thin liquidity.
Why This Matters
Smaller market-cap stocks can be gems, but they’re also at risk of manipulation, wide bid-ask spreads, and sudden price swings. Keeping it above $100 million means you generally deal with more established companies.Possible Trade-Off
You won’t see some hyper-growth small-cap unicorns in this screener, but that’s a conscious choice to prioritize liquidity and reduce risk.
6. Beta (1Y) < 2
Beta compares a stock’s volatility against the overall market. A Beta < 2 implies the stock can move faster than the market but generally not so wildly as to make it untradeable.
Why Filter by Volatility?
Some traders love volatility, but high-beta stocks can produce gut-wrenching fluctuations that blow up your account if you’re not cautious. Setting it below 2 still allows for moderate swings but helps avoid the wild price action of the highest-beta names.Context Is Key
Beta can vary if the broader market is in a big bull or bear cycle. A stock with a certain beta last year may have a different beta this year due to sector shifts or major news.
7. Avg Volume (30D) > 500K
Liquidity is crucial. If a stock doesn’t trade a significant amount of shares daily on average, you might struggle to enter or exit with minimal slippage, especially if you’re trading more than just a few shares.
Why 500K?
This is a balance between not missing out on smaller opportunities and not getting stuck in illiquid names. Active traders often pick a higher threshold (like 1M), but 500K is a reasonable floor.The Danger of Illiquidity
Low-volume stocks can gap significantly daily, hurting your trade management or forcing you to chase price levels.
8. Analyst Rating
Though analyst ratings aren’t a primary filter in this screener, it’s wise to glance at them. They reflect the professional consensus on a stock’s prospects—though analysts can certainly be wrong or biased.
Strong Buy or Buy
Indicates a favorable outlook. Several major banks or research firms believe the stock is undervalued or has significant growth potential.Hold, Underperform, or Sell
This could imply concerns about valuation, competitive pressures, or an upcoming downturn.
However, sometimes, a neutral rating means the stock is fairly valued already.
How These Filters Interact
Valuation (P/E, PEG): Ensures you’re not overpaying.
Growth (Revenue Growth): Ensures there’s momentum behind the business.
Profitability (Net Margin): Confirms that sales actually translate into earnings.
Liquidity (Avg Volume, Market Cap): Keeps you from being stuck in illiquid or highly speculative plays.
Volatility Control (Beta): Allows you to handle daily price moves without a roller-coaster ride.
When you combine all these, you’re left with a list of fundamentally sound, relatively stable, and potentially undervalued companies with a track record of growth.
Using The Oracle for Confirmation
Once your screener populates, The Oracle in TradingView’s Supercharts becomes your technical ally. Although you already understand its ins and outs, here’s how it fits into this puzzle:
Load Each Ticker
Bring your top 3–5 screener picks into Supercharts for a deeper look.Apply The Oracle
Look for buy signals, trend continuation, or reversal setups that indicate a potential upside move.
Pay attention to how The Oracle confirms or rejects the broader market trend (are we in a bull or bear phase?).
Match Technicals with Fundamentals
If The Oracle shows a bullish divergence or a breakout signal, and your fundamentals align (solid P/E, strong revenue growth, etc.), you have a high probability setup.
If The Oracle is neutral or flashing caution, consider placing the ticker on a watchlist until a clearer signal emerges.
Risk Management
The Oracle often provides support/resistance or recommended stops. Leverage these levels to define your risk-reward ratio.
Why This Screener Delivers Daily Opportunities
Dynamic Data: Prices, earnings, analyst ratings, and growth forecasts update frequently, allowing new stocks to enter or exit your screener criteria.
Fresh Signals: The Oracle (or any technical system) can generate new triggers almost daily as momentum shifts and candle patterns form.
Quarterly Catalyst: Every earnings season, fresh data can completely revamp your screener list, revealing brand-new under-the-radar tickers.
The result? You’re not chasing the same old names day after day. Instead, you’re tapping into a steady stream of undervalued, fundamentally sound stocks—ripe for Oracle-based analysis.
Final Thoughts
Building a powerful screener is about setting the right filters for valuation, growth, profitability, volatility, and liquidity—then applying The Oracle to pick your entry and exit moments precisely. With this approach:
You’ll weed out overhyped companies.
You’ll detect real growth stories that still have room to run.
You’ll stay liquid and manage volatility effectively.
You’ll rely on a time-tested custom indicator (The Oracle) to lock in timely trades.
Remember: No screener is the “be-all and end-all.”
Always perform additional due diligence—such as checking the company’s financials, sector trends, and macro environment—before committing capital.
But as a front-end to your research pipeline, this screener + Oracle combination is designed to dramatically improve your win rate and help you find opportunities others might miss.
Happy screening—and here’s to your trading success with The Oracle!
God bless you and your Family,
Jack Roshi, MIT PhD