Mark Minervini Setup
How to find stocks
Screen stocks that are within 25% of their 52-week high
Eliminate the following stocks
Eliminate stocks trading below 30
200 MA is rising for at least 3 months
50 MA is above 200 MA
Current price is above 200 SMA and preferably above 50 too
Current price is at least above 100% from 52-week low
The stock should have made a 52-week high at least once every 4 to 6 months
Buying Pattern
Make stock list every week after weekly closing
Use weekly charts
Use Volatility Contraction Pattern (VCP)
Use only Price and Volume
Stocks moving up with good volume and then falling with lower volume (consolidating) is good
Use weekly charts
AMO daily charts are good for seeing setting of the stock
Look for volatility contraction in daily charts (just for looking entry)
You don’t need to find new candidates every day, try to add to existing position
Breakouts should happen between 4–8 weeks
Win rate is only 50%, so be prepared
Post Buying Monitoring
Follow up buying
Green days vs Red days
Up Volume vs Down Volume
Tennis Ball Action
Shallow Pullback
VCP Pattern
Volatility Contraction Pattern (VCP)
To calculate volatility contraction, divide swing low by swing high then -1 gives the % drop in volatility
There should be ideally 3 VCP
Each time volatility should decrease by ideally 50% (not a hard rule)
Buy when the previous swing high is taken out
With volatility, there is also time contraction which is very similar to price contraction
Take a stock for 2 VCP only if the second contraction is more than 70%
Stop Loss Calculation
Plot 20-period ATR on daily chart
Calculate 2× of the above value
Use this value as your stop loss
Use maximum of 10% as stop loss
Here’s Mark Minervini coming into the ‘95 uptrend based on what stocks met his criteria. He didn’t get really aggressive until April ‘95 - had an incredible 413% return that year! From ‘Trade Like A Stock Market Wizard’ - Minervini 2013
11/3 Morning Watchlist:
News: $IREN $MSFT $DELL $AMZN $SNDK $NVDA $MDB
Earnings: $CIFR
Tightness/pullbacks: $CRWV $APLD $NVDA $CRWD
Earnings from last two weeks that are getting tight: $BE $CLS $GEV
- Many leading names have earnings this week... be cautious with buys
THE 9EMA PUT ON A CLINIC THIS MORNING‼️‼️
In this video I'm going to explain why the 9ema broke after it held most of the morning & how I knew it was going to happen🧠
This is a good one. Watch the video👇👇
THIS IS HOW I USE THE 9EMA EVERY DAY
This video will show you how to confirm the trend, find good pullbacks, enter, & set your stop loss
LETS GET INTO IT👇