VCP Patterns U.S. Stocks Swingtrades

I just read a couple books by Mark Minervini. Trade Like a Stock Market Wizard and Think & Trade like a Champion . Despite the gaudy titles I have found these to be two of the best books I've ever come across on trading. He uses his SEPA specific entry point analysis to pinpoint the exact spot where a consolidating stock will break out of its base. Not just any cup with handle base but one that exhibits VCP volatility contraction characteristics. Its a lot of work finding these but its pretty neat when you can pinpoint a stock that's going to blast out of its pivot point.

They don't always work. If you get a break out without a lot of volume, may want to take half off while you can still get a profit

SWN looking interesting

AMD

double bottom then tightened up.

Closed out the trade as it closed below the 10 day MA
initial stop - swing low
then moved to just below the low of the break out candle.
trimming between 1/4 to 1/2 @ between 1 to 2x R depending on type of market
after 1st profits taken stop moved to break even
***** 5 star set up

this set up had it all :

Minervini VCP base breakout
vol. dry up just prior to Break out
surfing the rising 10 and 20 MA just prior to break out
leading group - oil

Used Minervini style VCP cup with handle base breakouts for entry's and
incorporated Qullamaggies sell rules for his break out strategy. Home - Qullamaggie

IPO primary base, lots of good entry points best was 3.3% swing high/low , up 86% in three days .Not sure how but missed it even though it showed up on my ipo scan.

Example of another explosive primary base set up. Had two great entry opportunitys

2020 trade entrys. Have learned to sell some into strength and get stop to breakeven fairly quickly , ride remainders till close below the 10 MA

interesting set up, recent sell vol less than buy vol
markets crap but maybe this IPO has a mind of its own

Patience to wait for at least a 4 star set up **** 1/2 position size
5 stars set up ***** normal position size

Learn to let go and keep every loss B/E / small - every trade every time no exception Mkt can't f___ with you then.

But again realizing how important it is to be in the right theme and learning once again that the process should be: Identify Theme -> find leaders -> wait for setups -> free money. Take care and stick to your plans!


Feels like interesting stuff is going on. Indices breaking out of their small range to the upside and china being really strong. Also interesting that ARKK and XBI didn't make lower lows while everything else did (could be a sign for speculation money coming back). Another thing I find interesting is seeing the sector change: 1mo and 3mo gainers scan shows some biotechs and speculative stocks while 6mo just shows mostly O&G which are all breaking down heavily

Set up improved, China theme currently in vogue ...pop and drop like a lot of them have been doing this year. Dangerous trading environment. sold into strength and then stopped out remainders at break even

The future depends on what we do in the present

Gandhi

21 Lessons From Jesse Livermore: Trader Case Study - Zen & The Art of Trading (zenandtheartoftrading.com)


https://pbs.twimg.com/media/BbzIIzWCAAECBt0.jpg

UTHR

has VCP 2.9% last contraction
vol drop off @ pivot
surfing 10 MA
weekly not extended
Good theme -biotech

VCP also on weekly
vol dry up
surfing the 10 MA
MA's stacked
great fundamentals