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IC Mark Minervini Trend Template

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stage2uptrend
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Username: stage2uptrend

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Registered: 10-2018

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Saturday, March 09, 2019 - 10:16 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



My investing style is high growth stocks from mainly within the ASX 300. My influences are traders such as William O'Neil, Christopher Tate, Mark Minervini, and Stan Weinstein. Hence I was pleased when Colin introduced into Incredible Charts a scan based on Mark Minervini's trend template [1].

The scan is extremely useful for the type of stocks I look for including in a dedicated watchlist for further analysis. However, there appears to be an anomaly in reference to certain stocks not showing up in the Minervini All Ords trend template scan results. Two notable examples are APX (Appen) and BVS (Bravura Solutions). Both of these stocks are currently strongly trending up at near 52-week highs. Can anyone provide an explanation? Perhaps it is possible to tweak the search parameters in order for APX and BVS to show up in the scan results.

Some other stocks in my portfolio like ALU, BPT, JIN, NAN, NEA, NHC, and PNV all show up in the generated Minervini search results.

Regards,

stage2uptrend

1. https://tradingdiary.incrediblecharts.com/2018-10-29-whats_new.php


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colin_twiggs
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Monday, March 11, 2019 - 01:40 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Interesting issue that you raise. The problem is that the moving averages for these two stocks, since their listing, have never crossed, so the filter is not picking them up.

We are going to have to dig in the code to see how best to address this.







My views expressed on this forum do not consider your personal circumstances and should not be considered as financial advice. Please conduct your own research.

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gdd3
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Monday, March 11, 2019 - 08:08 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi stage2uptrend or Colin ... Would either of you like to explain how that scanner, as it is, picks up recommended entries(or exit) setups either as signals for change in trend(so as to maximise potential L/T holds or continuation of exiting trend(say, for pyramiding)?

As the scanner stands I see most examples picked up appeared to be usually well advance in a "mature" market. I'm interested in how to use this scan for the early stages of "confirmed change of potential trend" entries.

I guess what I'm really asking for is how either of you would use that existing scanner to detect early entries?

Dolphin}


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stage2uptrend
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Tuesday, March 12, 2019 - 09:56 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



I have all three Mark Minervini trading books. They all mention the trend template that Mark always consults before even considering buying a stock.

The third book, Think and Trade Trade Like a Champion (2015), section 6, Mark writes that he only buys stocks that are already in long-term uptrends. As the third book states, "Based on studies of the biggest winning stocks going all the way back to late 1800s, more than 95 percent of those stocks made their huge price gains while in a Stage 2 uptrend."

Paul Tudor Jones and Mark Minervini refuse to buy or hold any stock trading below the 200-day moving average.

TREND TEMPLATE CRITERIA:

A stock must meet all eight criteria to be deemed in a confirmed Stage 2 uptrend.

1. Stock price is above both the 150-day (30-week) and the 200-day (40-week) moving average price lines.
2. The 150-day moving average is above the 200-day moving average.
3. The 200-day moving average line is trending up for at least 1-month (preferably 4 to 5 months or longer).
4. The 50-day (10-week moving average) is above both the 150-day and the 200-day moving averages.
5. The current stock price is at least 25 percent above its 52-week low. (Many of the best selections will be 100 percent, 300 percent, or more above their 52-week low before they emerge from a healthy consolidation period and mount a large-scale advance).
6. The current stock price is within at least 25 percent of its 52-week high (the closer to a new high the better).
7. The relative strength (RS) ranking (as reported in Investor’s Business Daily) is no less than 70, but preferably in the 90s, which will generally be the case with the better selections. (Note: The RS line should not be in a strong downtrend. I like to see the RS line in an uptrend for at least 6 weeks, preferably 13 weeks or more.)
8. Current price is trading above the 50-day moving average as the stock is coming out of a base.

Minervini has to be extremely selective when looking for share purchase candidates. The stock is likely trading at new highs over n periods (e.g. 26 or 52 week high). This new high growth stock trend trading method is how Jesse Livermore and Nicolas Darvas also made millions in the market. Even better is when there is no previous price overhang or resistance. These superperformance stocks are trading in blue sky territory. Some current ASX examples are APX, BVS, JIN, ALU, NEA, AQZ, PME, CUV, IEL, and TNE.

The current IC Minervini All Ords trend template scan provides circa 75 generated results. We could infer that this represents the top 15% performing stocks from within the All Ords. Minervini would use this scan to eliminate the other 85% "junk" stocks. Minervini typically holds 8 to 12 stocks in a portfolio.

There is another important point to remember: the most successful trend traders never even look at weak stocks. They are not interested in any stock trading below a declining 200-day MA. They only inspect the very strongest stocks that are generated in their daily scan results.

Out of that circa top 15% stocks, Minervini will apply further filtering to narrow down the field. He also uses VCP (volatility contraction pattern) to look for strong stocks that are temporarily consolidating sideways in a relatively narrow range with reduced volume before going up again.

Regards,

stage2uptrend



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gdd3
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Tuesday, March 12, 2019 - 01:33 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Thanks 'stage'(if I may)for your quick replay.

I was aware of all but your pt. 7 of your listed criteria for this trading methodology but was looking more for how you filtered down the, say, 75 generated results to chose your actual trading/investing choices(say, Minervini's 8-12 stocks) AND when you would actually enter them.

As far as I can see it would be only those stocks that are in blue Sky above the 52week high(or if more aggressive ... did I say that ... above a 26wk high), maybe breaking out of a consolidation phase(how long that is I have no idea)but always above the 200ma.

Just pointing out one thing ... As you said ... "The current IC Minervini All Ords trend template scan provides circa 75 generated results and that this represents the top 15% performing stocks from within the All Ords." That 75 actually represents 25% of the Aussie I.C. scan as the scan is defaulted for the top 300 NOT the XAO.(top 500).

I am not aware of Minervini VCP (volatility contraction pattern)filtering system(obviously not available on I.C. and most TA systems) to look for strong stocks that are temporarily consolidating sideways in a relatively narrow range(merely Flag or Pennant trading) with reduced volume before going up again. Do I assume his enter "trigger" is simply a breakout of that consolidation ... just like most traditional TA books would recommend.

Cheers
Dolphin }}


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stage2uptrend
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Tuesday, March 12, 2019 - 02:20 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



The Incredible Charts Mark Minervini trend template scan caters for the ASX 100, ASX 300, and ASX 500 (All Ords).

Based on the ASX 100 with yesterday's data, 23 results were generated.

Based on the ASX 300 with yesterday's data, 60 results were generated.

Based on the ASX 500 with yesterday's data, 78 results were generated.

Note the pattern of diminishing results with ASX 500 vs. ASX 300. Most of the superperformance stocks are from within the ASX 300. JIN is one exception.

An additional 200 increase universe (i.e. ASX 500 vs. ASX 300) only results in 18 additional generated scan results.

Regards,

stage2uptrend







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stage2uptrend
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Thursday, March 14, 2019 - 09:48 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Based on last evening's (13 March, 2019) Incredible Charts Mark Minervini ASX 500 scan, 81 results were generated.

The following stocks from my portfolio also showed up in the scan: AX1, ALU, BPT, JIN, NAN, NEA, NHC, and PNV. Out of the 9 stocks in my current portfolio, BVS is the only one that doesn't appear in the Minervini scan. Hopefully Colin can eventually tweak the parameters in order that strong stocks like APT, APX, and BVS also show up.

My portfolio can also be managed using weekly charts if needed. But sometimes it is necessary to act on daily charts if a stock experiences a large fall. The objective is to manage the portfolio with some similarities to a mid cap growth stock fund manager, but with a completely mechanical technical buy and sell approach.

Selective filtering of information input is crucial when managing a portfolio of growth stocks. In order to more efficiently manage the portfolio, the following is completely avoided when making the buy and sell decision:

- Any printed or visual financial news media.
- Intraday market depth.
- Stock forum views.
- Broker reports.
- Share trader opinions or predictions.

The chart, current price, and trading plan, is all that is needed.

Regards,

stage2uptrend

PS: for more information on VCP (volatility contraction pattern) as used by Mark Minervini, see the various chart examples posted by ChartSaysYes at:

https://twitter.com/ChartSaysYes

Mark Minervini site:

http://www.minervini.com/blog/index.php/blog/show/how_to_time_your_trade_with_pi npoint_accuracy_the_volatility_contraction_vc

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