– Specific historical patterns of past multi-bagger stocks (e.g., 300–1000% gains) translated into a forward-looking screening checklist.
High-volume sales validate the quality of the earnings. – Specific historical patterns of past multi-bagger stocks
Stocks "digest" previous gains by fluctuating in narrowing price ranges with decreasing volume. Minervini is often labeled a momentum trader, but
Minervini is often labeled a momentum trader, but a more accurate description is "fundamental trend follower." He does not chase breakouts blindly; he waits for a specific technical pattern known as the . The VCP occurs when a stock, after a significant uptrend, pauses and begins to consolidate. As the consolidation progresses, the daily trading range (volatility) narrows, and volume dries up. This represents a natural "tightening" of supply and demand. Minervini likens it to a coiled spring. The wizard enters not at the top of the range, but at the precise moment the spring releases—on high volume, breaking through the pivot point. This is not chasing; it’s executing a low-risk entry with a clear stop-loss just below the recent low. Alongside the VCP, Minervini demands "Tenets" of health: strong quarterly earnings (often 20-50%+ year-over-year), rising profit margins, and a unique product or service (a "Tale of the Tape"). The wizard only buys stocks that are both fundamentally superior and technically poised for liftoff. This represents a natural "tightening" of supply and demand
If you cannot answer YES to all seven, walk away. There will be another trade tomorrow.
– Specific historical patterns of past multi-bagger stocks (e.g., 300–1000% gains) translated into a forward-looking screening checklist.
High-volume sales validate the quality of the earnings.
Stocks "digest" previous gains by fluctuating in narrowing price ranges with decreasing volume.
Minervini is often labeled a momentum trader, but a more accurate description is "fundamental trend follower." He does not chase breakouts blindly; he waits for a specific technical pattern known as the . The VCP occurs when a stock, after a significant uptrend, pauses and begins to consolidate. As the consolidation progresses, the daily trading range (volatility) narrows, and volume dries up. This represents a natural "tightening" of supply and demand. Minervini likens it to a coiled spring. The wizard enters not at the top of the range, but at the precise moment the spring releases—on high volume, breaking through the pivot point. This is not chasing; it’s executing a low-risk entry with a clear stop-loss just below the recent low. Alongside the VCP, Minervini demands "Tenets" of health: strong quarterly earnings (often 20-50%+ year-over-year), rising profit margins, and a unique product or service (a "Tale of the Tape"). The wizard only buys stocks that are both fundamentally superior and technically poised for liftoff.
If you cannot answer YES to all seven, walk away. There will be another trade tomorrow.