ds-Income Statement Analyzer for TradersPURPOSE: Identifies trends in Revenue, Margins, and Earnings (RME), providing a quick indication of areas that may warrant further focus.
FOCUS:
This tool focuses exclusively on quarterly data, making it especially useful for traders who follow the styles of William O'Neil, Mark Minervini, and David Ryan. Built on the concept that fundamental trends support technical price trends, this indicator is designed to assist swing and position traders in analyzing income statements by highlighting recent trends in revenue, margins, and earnings. It requires three quarters of data to establish a trend, emphasizing the last three quarters. Tools and indicators should 'tell something useful,' and in this case, the tool reveals whether revenue, margins, and earnings are expanding, contracting, or remaining flat, as well as whether these movements are accelerating or decelerating. Finally, built-in logic offers an at-a-glance interpretation of whether a stock warrants closer examination of its fundamental and technical data.
SETTINGS:
# Qtrs to Include: Allows you to select how many quarters of available data to display. (5-16)
Size: Allows you to adjust the size of the displayed table.
KPI Data Text Size: Allows you to adjust the size of the text in the KPI Row. Some text here is more verbose than others.
Position: Allows you to position the table.
Show Minervini 2Qtr Avgs.?: Hover of the “i” in settings for explanation.
Show Estimates vs Actuals?: Hover of the “i” in settings for explanation.
Emphasized Data Only in Headline Indicator?: Hover of the “i” in settings for explanation.
TABLE SECTIONS
Vertically: The table is divided into three sections: Revenues, Profit Margins, and Earnings.
Horizontally:
The top row contains section headers and key information.
The second row includes column headers and summary indicator symbols.
The main body displays quarterly data, with a default of 5 quarters and a maximum of 16.
Analysis sections include 3Q Trend, KPI, and ATH.
The bottom row shows the version number and provides a column symbol indicator for each data column.
TABLE - TOP ROW (Left to Right):
SYM: Displays the symbol being viewed.
Qtrs Avail: Shows the quarters of data available from TradingView, typically up to a maximum of 32 quarters, or 8 years. If this displays less than 8 years, the company is relatively young.
REVENUES: Header label for the Revenues section. To its right is a symbol that indicates the worst case from the bottom row of symbols, based on your settings.
PROFIT MARGINS: Header label for the Profit Margins section. To its right is a symbol that indicates the worst case from the bottom row of symbols, based on your settings.
EARNINGS: Header label for the Earnings section. To its right is a symbol that indicates the worst case from the bottom row of symbols, based on your settings.
TABLE - HEADER ROW:
This row displays the column header labels. Note the Emphasized column headers “yellow text” highlight the most important column data “Rev Actual ($)”, “Rev YoY Qtr Chg (%)”, “Net Margin (NM) (%)”, “NP YoY Qtr Chg (%)”, “EPS YoY Qtr Chg (%)”. This can be modified in the settings. If you hover over the header, a label will pop up to provide more details.
TABLE BODY ROWS: Shows up to 16 rows of quarterly data.
A black or blank background cell without text indicates that data is unavailable from TradingView. Green text shows a value higher than the prior quarter, while red text shows a value lower than the prior quarter, allowing you to quickly spot trends within each data column. A yellow background highlights cells with negative values, marking them as unfavorable. The yellow cells indicate data points that ideally should not be negative.
ANAYSIS ROWS: Shown with brown background.
3Q TREND: Analyzes the last three quarters of data in each column to determine if the trend is rising, falling, or flat.
KPI: Key Performance Indicator. Highlights critical information, such as whether the current quarter is an all-time high (ATH), momentum (MOM) is sideways or accelerating upward, or percentage margins have fallen below all-time highs. You may sometimes see "struct." in the cell here which indicates there is a structural issue. e.g., Net Margin is higher than Operating, EBITDA, or Gross Margin. This might reflect a one-time event that boasted earnings and is worth investigating.
ATH: All-time-high value. If KPI shows ATH then the value in this cell should be equal to the most recent quarters value.
TABLE - BOTTOM ROW (Left to Right):
Version Number: Displays the version number of the indicator code.
Column-Specific Symbol Indicator: Shown at the bottom of each column, this indicator assesses the data in that column for trends, performance, and other factors.
Symbols include:
Green Checkmark: Indicates acceptable performance.
Yellow Triangle: Suggests caution; a closer inspection of this column's data may be warranted.
Orange Diamond: Signals extreme caution, more serious than the Yellow Triangle but not as critical as a Red Flag.
Red Flag: Warns of undesirable performance characteristics associated with this column's data, indicating potential danger.
Minervini CODE33 from Trade Like a Stock Market Wizard
Code 33 situation, three quarters of acceleration in earnings, sales, and profit margins. This can be observed in this indicator by focusing on the “Rev YoY Qtr Chg (%)”, “Net Margin (NM) (%)”, “EPS YoY Qtr Chg (%)” looking for the green text in the last two quarters of data. Remember green text simply indicates the value is greater than the prior value. Note I have chosen not to represent the “Net Margin (NM) (%)” as a Year-over-Year (YoY) figure. If you wish to see the bottom line represented as a YoY, you can approximate that by using the “NP YoY Qtr Chg (%)”.
Minervini Smoothing Volatility: Quarterly financial results can be volatile. By averaging the earnings, sales, or other key financial metrics over the last two quarters, Minervini aims to reduce the impact of any one-off events or seasonal fluctuations, providing a more stable view of the company's operational performance. In this indicator I incorporated it for “Rev 2Qtr Chg (%)” and “NP 2Qtr Avg Chg (%)” which averages the last two quarters of Quarter-over-Quarter (QoQ) change.
Minervini
Danger Signals from The Trading MindwheelThe " Danger Signals " indicator, a collaborative creation from the minds at Amphibian Trading and MARA Wealth, serves as your vigilant lookout in the volatile world of stock trading. Drawing from the wisdom encapsulated in "The Trading Mindwheel" and the successful methodologies of legends like William O'Neil and Mark Minervini, this tool is engineered to safeguard your trading journey.
Core Features:
Real-Time Alerts: Identify critical danger signals as they emerge in the market. Whether it's a single day of heightened risk or a pattern forming, stay informed with specific danger signals and a tally of signals for comprehensive decision-making support. The indicator looks for over 30 different signals ranging from simple closing ranges to more complex signals like blow off action.
Tailored Insights with Portfolio Heat Integration: Pair with the "Portfolio Heat" indicator to customize danger signals based on your current positions, entry points, and stops. This personalized approach ensures that the insights are directly relevant to your trading strategy. Certain signals can have different meanings based on where your trade is at in its lifecycle. Blow off action at the beginning of a trend can be viewed as strength, while after an extended run could signal an opportunity to lock in profits.
Forward-Looking Analysis: Leverage the 'Potential Danger Signals' feature to assess future risks. Enter hypothetical price levels to understand potential market reactions before they unfold, enabling proactive trade management.
The indicator offers two different modes of 'Potential Danger Signals', Worst Case or Immediate. Worst Case allows the user to input any price and see what signals would fire based on price reaching that level, while the Immediate mode looks for potential Danger Signals that could happen on the next bar.
This is achieved by adding and subtracting the average daily range to the current bars close while also forecasting the next values of moving averages, vwaps, risk multiples and the relative strength line to see if a Danger Signal would trigger.
User Customization: Flexibility is at your fingertips with toggle options for each danger signal. Tailor the indicator to match your unique trading style and risk tolerance. No two traders are the same, that is why each signal is able to be turned on or off to match your trading personality.
Versatile Application: Ideal for growth stock traders, momentum swing traders, and adherents of the CANSLIM methodology. Whether you're a novice or a seasoned investor, this tool aligns with strategies influenced by trading giants.
Validation and Utility:
Inspired by the trade management principles of Michael Lamothe, the " Danger Signals " indicator is more than just a tool; it's a reflection of tested strategies that highlight the importance of risk management. Through rigorous validation, including the insights from "The Trading Mindwheel," this indicator helps traders navigate the complexities of the market with an informed, strategic approach.
Whether you're contemplating a new position or evaluating an existing one, the " Danger Signals " indicator is designed to provide the clarity needed to avoid potential pitfalls and capitalize on opportunities with confidence. Embrace a smarter way to trade, where awareness and preparation open the door to success.
Let's dive into each of the components of this indicator.
Volume: Volume refers to the number of shares or contracts traded in a security or an entire market during a given period. It is a measure of the total trading activity and liquidity, indicating the overall interest in a stock or market.
Price Action: the analysis of historical prices to inform trading decisions, without the use of technical indicators. It focuses on the movement of prices to identify patterns, trends, and potential reversal points in the market.
Relative Strength Line: The RS line is a popular tool used to compare the performance of a stock, typically calculated as the ratio of the stock's price to a benchmark index's price. It helps identify outperformers and underperformers relative to the market or a specific sector. The RS value is calculated by dividing the close price of the chosen stock by the close price of the comparative symbol (SPX by default).
Average True Range (ATR): ATR is a market volatility indicator used to show the average range prices swing over a specified period. It is calculated by taking the moving average of the true ranges of a stock for a specific period. The true range for a period is the greatest of the following three values:
The difference between the current high and the current low.
The absolute value of the current high minus the previous close.
The absolute value of the current low minus the previous close.
Average Daily Range (ADR): ADR is a measure used in trading to capture the average range between the high and low prices of an asset over a specified number of past trading days. Unlike the Average True Range (ATR), which accounts for gaps in the price from one day to the next, the Average Daily Range focuses solely on the trading range within each day and averages it out.
Anchored VWAP: AVWAP gives the average price of an asset, weighted by volume, starting from a specific anchor point. This provides traders with a dynamic average price considering both price and volume from a specific start point, offering insights into the market's direction and potential support or resistance levels.
Moving Averages: Moving Averages smooth out price data by creating a constantly updated average price over a specific period of time. It helps traders identify trends by flattening out the fluctuations in price data.
Stochastic: A stochastic oscillator is a momentum indicator used in technical analysis that compares a particular closing price of an asset to a range of its prices over a certain period of time. The theory behind the stochastic oscillator is that in a market trending upwards, prices will tend to close near their high, and in a market trending downwards, prices close near their low.
While each of these components offer unique insights into market behavior, providing sell signals under specific conditions, the power of combining these different signals lies in their ability to confirm each other's signals. This in turn reduces false positives and provides a more reliable basis for trading decisions
These signals can be recognized at any time, however the indicators power is in it's ability to take into account where a trade is in terms of your entry price and stop.
If a trade just started, it hasn’t earned much leeway. Kind of like a new employee that shows up late on the first day of work. It’s less forgivable than say the person who has been there for a while, has done well, is on time, and then one day comes in late.
Contextual Sensitivity:
For instance, a high volume sell-off coupled with a bearish price action pattern significantly strengthens the sell signal. When the price closes below an Anchored VWAP or a critical moving average in this context, it reaffirms the bearish sentiment, suggesting that the momentum is likely to continue downwards.
By considering the relative strength line (RS) alongside volume and price action, the indicator can differentiate between a normal retracement in a strong uptrend and a when a stock starts to become a laggard.
The integration of ATR and ADR provides a dynamic framework that adjusts to the market's volatility. A sudden increase in ATR or a character change detected through comparing short-term and long-term ADR can alert traders to emerging trends or reversals.
The "Danger Signals" indicator exemplifies the power of integrating diverse technical indicators to create a more sophisticated, responsive, and adaptable trading tool. This approach not only amplifies the individual strengths of each indicator but also mitigates their weaknesses.
Portfolio Heat Indicator can be found by clicking on the image below
Danger Signals Included
Price Closes Near Low - Daily Closing Range of 30% or Less
Price Closes Near Weekly Low - Weekly Closing Range of 30% or Less
Price Closes Near Daily Low on Heavy Volume - Daily Closing Range of 30% or Less on Heaviest Volume of the Last 5 Days
Price Closes Near Weekly Low on Heavy Volume - Weekly Closing Range of 30% or Less on Heaviest Volume of the Last 5 Weeks
Price Closes Below Moving Average - Price Closes Below One of 5 Selected Moving Averages
Price Closes Below Swing Low - Price Closes Below Most Recent Swing Low
Price Closes Below 1.5 ATR - Price Closes Below Trailing ATR Stop Based on Highest High of Last 10 Days
Price Closes Below AVWAP - Price Closes Below Selected Anchored VWAP (Anchors include: High of base, Low of base, Highest volume of base, Custom date)
Price Shows Aggressive Selling - Current Bars High is Greater Than Previous Day's High and Closes Near the Lows on Heaviest Volume of the Last 5 Days
Outside Reversal Bar - Price Makes a New High and Closes Near the Lows, Lower Than the Previous Bar's Low
Price Shows Signs of Stalling - Heavy Volume with a Close of Less than 1%
3 Consecutive Days of Lower Lows - 3 Days of Lower Lows
Close Lower than 3 Previous Lows - Close is Less than 3 Previous Lows
Character Change - ADR of Last Shorter Length is Larger than ADR of Longer Length
Fast Stochastic Crosses Below Slow Stochastic - Fast Stochastic Crosses Below Slow Stochastic
Fast & Slow Stochastic Curved Down - Both Stochastic Lines Close Lower than Previous Day for 2 Consecutive Days
Lower Lows & Lower Highs Intraday - Lower High and Lower Low on 30 Minute Timeframe
Moving Average Crossunder - Selected MA Crosses Below Other Selected MA
RS Starts Curving Down - Relative Strength Line Closes Lower than Previous Day for 2 Consecutive Days
RS Turns Negative Short Term - RS Closes Below RS of 7 Days Ago
RS Underperforms Price - Relative Strength Line Not at Highs, While Price Is
Moving Average Begins to Flatten Out - First Day MA Doesn't Close Higher
Price Moves Higher on Lighter Volume - Price Makes a New High on Light Volume and 15 Day Average Volume is Less than 50 Day Average
Price Hits % Target - Price Moves Set % Higher from Entry Price
Price Hits R Multiple - Price hits (Entry - Stop Multiplied by Setting) and Added to Entry
Price Hits Overhead Resistance - Price Crosses a Swing High from a Monthly Timeframe Chart from at Least 1 Year Ago
Price Hits Fib Level - Price Crosses a Fib Extension Drawn From Base High to Low
Price Hits a Psychological Level - Price Crosses a Multiple of 0 or 5
Heavy Volume After Significant Move - Above Average and Heaviest Volume of the Last 5 Days 35 Bars or More from Breakout
Moving Averages Begin to Slope Downward - Moving Averages Fall for 2 Consecutive Days
Blow Off Action - Highest Volume, Largest Spread, Multiple Gaps in a Row 35 Bars or More Post Breakout
Late Buying Frenzy - ANTS 35 Bars or More Post Breakout
Exhaustion Gap - Gap Up 5% or Higher with Price 125% or More Above 200sma
Minervini Stage 2 AnalysisHandbook for Minervini Stage 2 Analysis Indicator
Introduction
This handbook provides detailed instructions and guidelines for using the Minervini Stage 2 Analysis Indicator based on Mark Minervini's swing trading methodology. This indicator is designed for traders focusing on US stocks, aiming to capture gains in medium to short-term uptrends (swing trading).
Understanding Stage 2
Stage 2 represents a bullish uptrend in a stock's price. Mark Minervini emphasizes entering long positions during this phase. The stage is identified using four key criteria related to moving averages (MAs).
Indicator Criteria
Stock Price Above MA 150 and 200: Indicates an overall uptrend.
MA 150 Above MA 200: Signals a stronger medium-term trend compared to the long-term trend.
MA 200 Trending Up for At Least 1 Month (22 Days): Confirms a stable uptrend.
MA 50 Above Both MA 150 and 200: Shows short-term strength and momentum.
Using the Indicator
Entering Trades: Consider long positions when all four criteria are met. This signifies that the stock is in a Stage 2 uptrend.
Monitoring Trades: Regularly check if the stock continues to meet these criteria. The indicator provides a clear visual and textual representation for ease of monitoring.
Alarm Signals and Exit Strategy
One Criterion Not Met: This serves as an alarm signal. Increased vigilance is required, and traders should prepare for a potential exit.
Two Criteria Not Met: Strong indication to close the trade. This suggests the stock may be transitioning out of Stage 2, increasing the risk of holding the position.
Risk Management
Stop-Loss Orders: Consider setting a trailing stop-loss to protect profits and minimize losses.
Position Sizing: Adjust position sizes according to your risk tolerance and portfolio strategy.
Volume and Relative Strength Analysis
Volume Analysis: Look for increased trading volume as confirmation when the stock price moves above key MAs.
Relative Strength (RS) Rating: Compare the stock's performance to the broader market to gauge its strength.
Limitations and Considerations
Market Conditions: The indicator's effectiveness may vary with market conditions. It is more reliable in a bullish market environment.
Supplementary Analysis: Combine this indicator with other analysis methods (fundamental, technical) for a holistic approach.
Continuous Learning: Stay updated with market trends and adjust your strategy accordingly.
Conclusion
The Minervini Stage 2 Analysis Indicator is a powerful tool for identifying potential long positions in uptrending stocks. Its reliance on specific criteria aligns with Mark Minervini's proven swing trading strategy. However, always exercise due diligence and risk management in your trading decisions.
The Flash-Strategy with Minervini Stage Analysis QualifierThe Flash-Strategy (Momentum-RSI, EMA-crossover, ATR) with Minervini Stage Analysis Qualifier
Introduction
Welcome to a comprehensive guide on a cutting-edge trading strategy I've developed, designed for the modern trader seeking an edge in today's dynamic markets. This strategy, which I've honed through my years of experience in the trading arena, stands out for its unique blend of technical analysis and market intuition, tailored specifically for use on the TradingView platform.
As a trader with a deep passion for the financial markets, my journey began several years ago, driven by a relentless pursuit of a trading methodology that is both effective and adaptable. My background in trading spans various market conditions and asset classes, providing me with a rich tapestry of experiences from which to draw. This strategy is the culmination of that journey, embodying the lessons learned and insights gained along the way.
The cornerstone of this strategy lies in its ability to generate precise long signals in a Stage 2 uptrend and equally accurate short signals in a Stage 4 downtrend. This approach is rooted in the principles of trend following and momentum trading, harnessing the power of key indicators such as the Momentum-RSI, EMA Crossover, and Average True Range (ATR). What sets this strategy apart is its meticulous design, which allows it to adapt to the ever-changing market conditions, providing traders with a robust tool for navigating both bullish and bearish scenarios.
This strategy was born out of a desire to create a trading system that is not only highly effective in identifying potential trade setups but also straightforward enough to be implemented by traders of varying skill levels. It's a reflection of my belief that successful trading hinges on clarity, precision, and disciplined execution. Whether you are a seasoned trader or just beginning your journey, this guide aims to provide you with a comprehensive understanding of how to harness the full potential of this strategy in your trading endeavors.
In the following sections, we will delve deeper into the mechanics of the strategy, its implementation, and how to make the most out of its features. Join me as we explore the nuances of a strategy that is designed to elevate your trading to the next level.
Stage-Specific Signal Generation
A distinctive feature of this trading strategy is its focus on generating long signals exclusively during Stage 2 uptrends and short signals during Stage 4 downtrends. This approach is based on the widely recognized market cycle theory, which divides the market into four stages: Stage 1 (accumulation), Stage 2 (uptrend), Stage 3 (distribution), and Stage 4 (downtrend). By aligning the signal generation with these specific stages, the strategy aims to capitalize on the most dynamic and clear-cut market movements, thereby enhancing the potential for profitable trades.
1. Long Signals in Stage 2 Uptrends
• Characteristics of Stage 2: Stage 2 is characterized by a strong uptrend, where prices are consistently rising. This stage typically follows a period of accumulation (Stage 1) and is marked by increased investor interest and bullish sentiment in the market.
• Criteria for Long Signal Generation: Long signals are generated during this stage when the technical indicators align with the characteristics of a Stage 2 uptrend.
• Rationale for Stage-Specific Signals: By focusing on Stage 2 for long trades, the strategy seeks to enter positions during the phase of strong upward momentum, thus riding the wave of rising prices and investor optimism. This stage-specific approach minimizes exposure to less predictable market phases, like the consolidation in Stage 1 or the indecision in Stage 3.
2. Short Signals in Stage 4 Downtrends
• Characteristics of Stage 4: Stage 4 is identified by a pronounced downtrend, with declining prices indicating prevailing bearish sentiment. This stage typically follows the distribution phase (Stage 3) and is characterized by increasing selling pressure.
• Criteria for Short Signal Generation: Short signals are generated in this stage when the indicators reflect a strong bearish trend.
• Rationale for Stage-Specific Signals: Targeting Stage 4 for shorting capitalizes on the market's downward momentum. This tactic aligns with the natural market cycle, allowing traders to exploit the downward price movements effectively. By doing so, the strategy avoids the potential pitfalls of shorting during the early or late stages of the market cycle, where trends are less defined and more susceptible to reversals.
In conclusion, the strategy’s emphasis on stage-specific signal generation is a testament to its sophisticated understanding of market dynamics. By tailoring the long and short signals to Stages 2 and 4, respectively, it leverages the most compelling phases of the market cycle, offering traders a clear and structured approach to aligning their trades with dominant market trends.
Strategy Overview
At the heart of this trading strategy is a philosophy centered around capturing market momentum and trend efficiency. The core objective is to identify and capitalize on clear uptrends and downtrends, thereby allowing traders to position themselves in sync with the market's prevailing direction. This approach is grounded in the belief that aligning trades with these dominant market forces can lead to more consistent and profitable outcomes.
The strategy is built on three foundational components, each playing a critical role in the decision-making process:
1. Momentum-RSI (Relative Strength Index): The Momentum-RSI is a pivotal element of this strategy. It's an enhanced version of the traditional RSI, fine-tuned to better capture the strength and velocity of market trends. By measuring the speed and change of price movements, the Momentum-RSI provides invaluable insights into whether a market is potentially overbought or oversold, suggesting possible entry and exit points. This indicator is especially effective in filtering out noise and focusing on substantial market moves.
2. EMA (Exponential Moving Average) Crossover: The EMA Crossover is a crucial component for trend identification. This strategy employs two EMAs with different timeframes to determine the market trend. When the shorter-term EMA crosses above the longer-term EMA, it signals an emerging uptrend, suggesting a potential long entry. Conversely, a crossover below indicates a possible downtrend, hinting at a short entry opportunity. This simple yet powerful tool is key in confirming trend directions and timing market entries.
3. ATR (Average True Range): The ATR is instrumental in assessing market volatility. This indicator helps in understanding the average range of price movements over a given period, thus providing a sense of how much a market might move on a typical day. In this strategy, the ATR is used to adjust stop-loss levels and to gauge the potential risk and reward of trades. It allows for more informed decisions by aligning trade management techniques with the current volatility conditions.
The synergy of these three components – the Momentum-RSI, EMA Crossover, and ATR – creates a robust framework for this trading strategy. By combining momentum analysis, trend identification, and volatility assessment, the strategy offers a comprehensive approach to navigating the markets. Whether it's capturing a strong trend in its early stages or identifying a potential reversal, this strategy aims to provide traders with the tools and insights needed to make well-informed, strategically sound trading decisions.
Detailed Component Analysis
The efficacy of this trading strategy hinges on the synergistic functioning of its three key components: the Momentum-RSI, EMA Crossover, and Average True Range (ATR). Each component brings a unique perspective to the strategy, contributing to a well-rounded approach to market analysis.
1. Momentum-RSI (Relative Strength Index)
• Definition and Function: The Momentum-RSI is a modified version of the classic Relative Strength Index. While the traditional RSI measures the velocity and magnitude of directional price movements, the Momentum-RSI amplifies aspects that reflect trend strength and momentum.
• Significance in Identifying Trend Strength: This indicator excels in identifying the strength behind a market's move. A high Momentum-RSI value typically indicates strong bullish momentum, suggesting the potential continuation of an uptrend. Conversely, a low Momentum-RSI value signals strong bearish momentum, possibly indicative of an ongoing downtrend.
• Application in Strategy: In this strategy, the Momentum-RSI is used to gauge the underlying strength of market trends. It helps in filtering out minor fluctuations and focusing on significant movements, providing a clearer picture of the market's true momentum.
2. EMA (Exponential Moving Average) Crossover
• Definition and Function: The EMA Crossover component utilizes two exponential moving averages of different timeframes. Unlike simple moving averages, EMAs give more weight to recent prices, making them more responsive to new information.
• Contribution to Market Direction: The interaction between the short-term and long-term EMAs is key to determining market direction. A crossover of the shorter EMA above the longer EMA is an indicator of an emerging uptrend, while a crossover below signals a developing downtrend.
• Application in Strategy: The EMA Crossover serves as a trend confirmation tool. It provides a clear, visual representation of the market's direction, aiding in the decision-making process for entering long or short positions. This component ensures that trades are aligned with the prevailing market trend, a crucial factor for the success of the strategy.
3. ATR (Average True Range)
• Definition and Function: The ATR is an indicator that measures market volatility by calculating the average range between the high and low prices over a specified period.
• Role in Assessing Market Volatility: The ATR provides insights into the typical market movement within a given timeframe, offering a measure of the market's volatility. Higher ATR values indicate increased volatility, while lower values suggest a calmer market environment.
• Application in Strategy: Within this strategy, the ATR is instrumental in tailoring risk management techniques, particularly in setting stop-loss levels. By accounting for the market's volatility, the ATR ensures that stop-loss orders are placed at levels that are neither too tight (risking premature exits) nor too loose (exposing to excessive risk).
In summary, the combination of Momentum-RSI, EMA Crossover, and ATR in this trading strategy provides a comprehensive toolkit for market analysis. The Momentum-RSI identifies the strength of market trends, the EMA Crossover confirms the market direction, and the ATR guides in risk management by assessing volatility. Together, these components form the backbone of a strategy designed to navigate the complexities of the financial markets effectively.
1. Signal Generation Process
• Combining Indicators: The strategy operates by synthesizing signals from the Momentum-RSI, EMA Crossover, and ATR indicators. Each indicator serves a specific purpose: the Momentum-RSI gauges trend momentum, the EMA Crossover identifies the trend direction, and the ATR assesses the market’s volatility.
• Criteria for Signal Validation: For a signal to be considered valid, it must meet specific criteria set by each of the three indicators. This multi-layered approach ensures that signals are not only based on one aspect of market behavior but are a result of a comprehensive analysis.
2. Conditions for Long Positions
• Uptrend Confirmation: A long position signal is generated when the shorter-term EMA crosses above the longer-term EMA, indicating an uptrend.
• Momentum-RSI Alignment: Alongside the EMA crossover, the Momentum-RSI should indicate strong bullish momentum. This is typically represented by the Momentum-RSI being at a high level, confirming the strength of the uptrend.
• ATR Consideration: The ATR is used to fine-tune the entry point and set an appropriate stop-loss level. In a low volatility scenario, as indicated by the ATR, the stop-loss can be set tighter, closer to the entry point.
3. Conditions for Short Positions
• Downtrend Confirmation: Conversely, a short position signal is indicated when the shorter-term EMA crosses below the longer-term EMA, signaling a downtrend.
• Momentum-RSI Confirmation: The Momentum-RSI should reflect strong bearish momentum, usually seen when the Momentum-RSI is at a low level. This confirms the bearish strength of the market.
• ATR Application: The ATR again plays a role in determining the stop-loss level for the short position. Higher volatility, as indicated by a higher ATR, would warrant a wider stop-loss to accommodate larger market swings.
By adhering to these mechanics, the strategy aims to ensure that each trade is entered with a high probability of success, aligning with the market’s current momentum and trend. The integration of these indicators allows for a holistic market analysis, providing traders with clear and actionable signals for both entering and exiting trades.
Customizable Parameters in the Strategy
Flexibility and adaptability are key features of this trading strategy, achieved through a range of customizable parameters. These parameters allow traders to tailor the strategy to their individual trading style, risk tolerance, and specific market conditions. By adjusting these parameters, users can fine-tune the strategy to optimize its performance and align it with their unique trading objectives. Below are the primary parameters that can be customized within the strategy:
1. Momentum-RSI Settings
• Period: The lookback period for the Momentum-RSI can be adjusted. A shorter period makes the indicator more sensitive to recent price changes, while a longer period smoothens the RSI line, offering a broader view of the momentum.
• Overbought/Oversold Thresholds: Users can set their own overbought and oversold levels, which can help in identifying extreme market conditions more precisely according to their trading approach.
2. EMA Crossover Settings
• Timeframes for EMAs: The strategy uses two EMAs with different timeframes. Traders can modify these timeframes, choosing shorter periods for a more responsive approach or longer periods for a more conservative one.
• Source Data: The choice of price data (close, open, high, low) used in calculating the EMAs can be varied depending on the trader’s preference.
3. ATR Settings
• Lookback Period: Adjusting the lookback period for the ATR impacts how the indicator measures volatility. A longer period may provide a more stable but less responsive measure, while a shorter period offers quicker but potentially more erratic readings.
• Multiplier for Stop-Loss Calculation: This parameter allows traders to set how aggressively or conservatively they want their stop-loss to be in relation to the ATR value.
Here are the standard settings:
Alpha Momentum Trade - AMT (QUAD Financial)The "Alpha Momentum Trend" indicator was conceived by Tiago Friedrich and programmed by Conrado Villaça.
The indicator description applies to the daily chart. When used on other timeframes, the indicator also changes its signals based on the timeframe used.
It has five fields, from top to bottom:
1. "ATR Multiple MA" greater than multiple: shows how many candles the asset stayed 7 times the ATR (average true range) above the 50-period simple moving average (SMA) in the last 126 candles. The purpose is to identify the strength of the asset because the more times it stayed at this distance from the SMA 50, the greater the acceleration of its prices tends to be, indicating a high momentum asset. You can change the period of the SMA in the indicator settings.
2. ATR% Multiple from MA: shows the multiple of ATR that the asset is from the same SMA as in the upper field. The default is the SMA 50, and the indicator helps identify interesting regions to take profits from long positions. When the asset is more than 7 ATRs above the SMA 50, the asset is considered "stretched," and a correction or price consolidation becomes likely. For high beta assets with a very strong trend, you can use a multiple of 10 ATRs for this purpose.
3. ATR% Multiple from 52w Low: shows the multiple of ATR that the asset is in relation to the 52-week low price. The higher the number, the more the asset has risen relative to its volatility standards, indicating a stronger trend. For momentum traders, it's ideal for the asset to be at least 15 ATRs above the minimum for this period to ensure that it's in a strong uptrend and far from the lows.
4. Longest streak above SMA: within the last 126 candles, it shows the longest streak of days when the asset didn't close below a specific simple moving average. The default definition is with the 10-day SMA, but you can change it in the indicator settings. The more consecutive days the asset can stay above the SMA10, the sign that its trend is consistent and not very volatile, which is desirable. Ideally, an asset should have previously formed an uptrend by staying at least 20 consecutive days above the SMA10.
5. Longest streak above EMA: within the last 126 candles, it shows the longest streak of days when the asset didn't close below a specific exponential moving average. The default definition is with the 21-day EMA, but you can change it in the indicator settings. The more consecutive days the asset can stay above the EMA21, the sign that its trend is consistent and not very volatile, which is desirable. Ideally, an asset should have previously formed an uptrend by staying at least 35 consecutive days above the EMA21.
It's also possible to visualize on the chart the moving averages used for the calculation of the "ATR Multiple MA," "Longest streak above SMA," and "Longest streak above EMA". In the default configuration, this results in a simple 50-day moving average, a simple 10-day moving average, and an exponential 21-day moving average being displayed on the chart, respectively.
[TTI] Minervini MonAlert Pro––––HISTORY & CREDITS 🏦
This indicator, Minervini MonAlert, is an updated version of the October 2022 Minervini MonAlert ( ).
Special thanks to Michael Walstedt @MichaelWalstedt for his valuable contributions to make this happen. The script is inspired by the stealth platform functionality, MonAlert, by Mark Minervini, the legendary trader and market wizard. The acronym MonAlert stands for Monitor and Alert.
––––WHAT IT DOES 💡
The Minervini MonAlert indicator is designed for traders who want to have "Minervini-like" eyes on technical setups for confirmation and violations. It helps to monitor and alert users about various technical setups, painting on the chart the things that Mark Minervini looks for pre and post buy to confirm or violate the trade. The indicator includes 58 daily and weekly indicators, covering various aspects of technical analysis that show confirming or violating action.
––––FUNCTIONALITIES
Label Plots
At each bar you can see how many confirmations and violations have triggered. The indicator prints a label with the sum of the total number of confirmations in green and violations in red. These can be turned on and off, so that only confirmations or violations are plotted.
🚨When you hover with the mouse over the labels, you can see exactly which indicators have triggered! Example of the functionality is shown on the chart with the picture in black outline.
Summary Label
You can turn on a label on the right hand side to show the total sum of the confirmations and violations. If violations are more than confirmations the label will color accordingly. The period for which the calculations are made is customizable in the settings.
Background Coloring
The background of the chart can be colored if it is turned on in settings.
👉Option 1 is to color the period which the indicator analyses
👉Option 2 is to color according to the recent balance (sum) between violations and confirmations. 🟩Green background means that there are more confirmations and 🟥Red means there are more violations. 🟨Orange means confirmations and violations are the same number
Bars only
If you add another instance of the indicator and move it to a new pane you can trigger the Additional Charts funcationalities and see the a histogram of bars. These can be set with 3 settings:
👉Net: Showing the net between the number of violations and confirmations
👉Confirmations only: Showing only the number of confirmations
👉Violations only: Showing only the number of violations.
––––CALCULATIONS
Some indicators are both confirming and violating, others are only violating or only confirming. Hence the total number of signals are 58.
// Indicator 1 - Lower Lows and Higher Highs: Looks at consecutive lower lows and higher highs based on thresholds suggested by Mark
// Indicator 2 - Looks for days with significant price advancement
// Indicator 3 - Good and Bad closes: Looks at how the stock is closing compared to its intraday range
// Indicator 4 - Analyzes the price action around the 50-day simple moving average
// Indicator 5 - Stock Under Pressure: Looks whether the stock is under technical pressure as per IBD methodology.
// Indicator 6 - Up days and Down days looks wether the stock has been mostly going up or down
// Indicator 7 - Studies the largest volume days and their directio
// Indicator 8 - Detects wether there is an Outside Day
// Indicator 9 - Identifies relative strength new highs and new lows
// Indicator 10 - Monitors for potential reversals in price trends
// Indicator 11 - Detects for pattern called "Megaphone" that signifies increases in volatility
// Indicator 12 - There is a famous rule of William O'Neil about stock making 20% advancement
// Indicator 13 - ANTS Confirmation - a pattern coined by David Ryan, that looks for both consecutive advancement and volume
// Indicator 14 - Angle D - an technical pattern coinded by Mark Minervini, that looks at the price direction vs the direction of the 50D SMA
// Indicator 15 - 17 Closes around key moving averages
// Indicator 18 / 19 Observes stock closing prices at high or low points
// Indicatro 19 - Detects significant reversals in stock price trends that are backed by significant volume
// Indicator 20 - Identifies stocks that decline with a substantial volume increase.
// Indicator 21 - Issues a warning for stocks that may be overextended, compared to its own price action
// Indicator 22 - Highlights days with a narrower price range than the previous day
// Indicator 23 - 24 Detects the largest down days accompanied by high trading volume.
// Indicator 25 -Pinpoints stocks that rise with a substantial volume increase (e.g. +30%)
// Indicator 26 - 30 Studies weekly price trends, analyses significant weekly declines on high trading volume and examines for the largest percentage price decline.
––––HOW TO USE IT 🔧
To use the Minervini MonAlert indicator, follow these steps:
1️⃣ Apply the indicator to your chart by searching for " Minervini MonAlert" in the TradingView indicators section. The script is 'invite-only'.
2️⃣ Customize the indicator's settings to suit your trading style and preferences.
3️⃣ Observe the various technical setups and alerts generated by the indicator on your chart.
4️⃣ Use the outputs of the technical setups as confirmation signals or violations to help make informed trading decisions. A stock that is gathering a lot of violating action before or after a breakout is a lower probabiltiy setup.
5️⃣ Combine the Minervini MonAlert indicator with other technical analysis tools or methods for a more comprehensive trading strategy.
Remember that the Minervini MonAlert indicator should be used as a supplement to your existing trading strategy and not as a standalone tool. Always consider other factors, such as fundamental analysis and risk management, to make well-rounded trading decisions.
[TTI] Minervini STEM Model📜 ––––HISTORY & CREDITS 🏦
Introducing the Minervini STEM Model, an innovative indicator developed by Mark Minervini, an experienced trader and author renowned for his expertise in gauging the quality of breakouts. The Stock Tactical Environment Model (STEM) is designed to assess the trading environment based on the performance and setup of stocks, helping traders navigate various market conditions with ease.
🎯 ––––WHAT IT DOES 💡
The Minervini STEM Model measures the quality of breakouts in the stock market and provides valuable insights into the trading environment. The model is subjective based on the performance of the Mark Minervini Focus List on a 5 day rolling basis.
• What is the Mark Minervini Focus List?
- This is a private weekly watchlist of all the best setups provided by Mark Minervini in his Private Access Group
• How is the quality of breakouts measured?
- This is the subjective part of the indicator. A good breakout is one that has definite clear of a pivot, with a good close and strong volume. From then on there are strong follow through buys (consecutive up days with new highs) again with good (above average) volume signatures. When stocks start moving in earnest and together and breakouts happen with quality technical characteristics and keep on holding the new highs, then we have a good quality breakouts, otherwise if there are 'pop and drops' (breakout met with subsequent selling on the next days) - we have a bad quality breakouts.
• What is the 5 day rolling basis?
- As part of the methodology, I have included, how are the watchlist (Focus List) is performing on subsequent on the next 5 days. This means if we have 10 stocks on Friday, how many did close up in the following 5 days, do we have improvement compared to the previous week and the week before that, is there an overall trend of stocks gaining value or not. This also measures the quality of the bearjouts
🚨IMPORTANT! The model is largely subjective based on the various factors. Largely, I look at Mark Minervini's focus list and determine how it is performing on a 5 day rolling basis. Depending on how many of the Focus List stocks are closing down for the 5 day period (e.g. less than 60%) and how are all cumulatively performing, I adjust the model. It generates three distinct color-coded signals to indicate the effectiveness of breakouts and the overall market condition:
Color meanings
🟩Green: Breakouts are working well, indicating an easy dollar environment.
🟨Orange: The market is selective or highly rotational, signalling a need for caution.
🟥Red: Breakouts are not working well, suggesting a hard penny environment and high risk.
This color-coded system allows traders to quickly assess the market's health and adjust their trading strategies accordingly.
🛠️ ––––HOW TO USE IT 🔧
To effectively use the Minervini STEM Model, follow these steps:
1.Load the Minervini STEM Model script into your preferred charting platform.
2.Observe the color-coded signals displayed on your chart.
Interpret the signals as follows:
🟩Green: Breakouts are working well. Consider aggressive trading and increasing exposure.
🟨Orange: The market is selective or highly rotational. Exercise caution when trading and be selective with your stock setups.
🟥Red: Breakouts are not working well, and risk is high. Adopt maximum caution and consider reducing exposure or staying small until you gain traction.
By incorporating the Minervini STEM Model into your trading strategy, you can better gauge the quality of breakouts and the overall market condition, enabling you to make informed decisions on your trades. Remember to use this tool in conjunction with other technical indicators and risk management practices to optimize your success.
JS-TechTrading: VWAP Momentum_Pullback StrategyGeneral Description and Unique Features of this Script
Introducing the VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available on TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strateg y
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from April 2020 until April 2021 (1 yr)
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The RSI qualifier is highly selective and filters out the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• As a result, traders need to apply this strategy for a full watchlist rather than just one financial security.
[TTI] Minervini Envelopes––––History & Credit
This is an indicator that I saw Mark Minervini using. Picture attached to the Session he showed it.
–––––What it does
The indicator is a Envelopes band. Envelopes represent bands that are plotted in a certain, identical relationship above and below the Moving Average. Envelopes are a very complex theme with many interpretation and trading rules. Basically, envelopes capture a significant part of price movements. Concrete trading signals are released if prices approach or move away form their envelope.
Envelopes are plotted around a Moving Average in a constant percentage distance. Hence they are added to or subtracted from this average. Both envelope lines thus define the prevailing trading range.
–––––How to use it
While several different trading rules are available, the most simple approach uses the price band as an entry and exit point. When price penetrates the upper price band, you initiate a long position or buy. If you have an existing short position, you close out shorts and go long. Conversely, when prices penetrate the lower price band, you close out long positions and go short.
–––––How to Mark Minervini uses it
He applies it to the SPY ONLY and ONLY on WEEKLY! When the price action is above the Envelope then he is in his long term portfolio (he disclaimed it is only a small portfolio for his daugther!)
Minervini Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the ultimate trend-following (long-only) strategy that offers a unique feature you won't find anywhere else!
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 3x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you're day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We also incorporate technical indicators such as RSI and MACD to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum, giving you peace of mind while trading.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
We have developed an algorythm (for TradingView) that uses Minervini’s trend template as a qualifier. This means that the strategy only generates trading signals in case the selected elements of the trend template are being met. The user is fully flexible to adjust the requirements of this Trend-Template qualifier:
This strategy is normally applied to the daily chart ideal for selecting individual stocks for trend-following strategies. Nevertheless, Minervini’s principles are timeless and this alogrithmic strategy with the Trend-Template qualifier can also be applied to any other timframe.
The qualifier #9 (RS-Ratings) can be modified and optimized in the strategy’s settings to fit your individual needs.
In general, it should be noted that ideally all 8/8 trend template criteria are met. Stocks or other securities that meet only some of these 8 criteria can also be very promising candidates for this strategy, provided that backtesting yields good results.
The Pullback Strategy
For the JS-TechTrading pullback strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are considered. If not, the strategy will not generate any signals.
Further prerequisites for generating a buy signal is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MACD after reaching a price low, a buy signal is issued by the pullback strategy.
Stop-loss limits and profit targets can be set variably.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
Moving Average Convergence Divergence (MACD)
The MACD (Moving Average Convergence Divergence) is a technical indicator used in both short-term and long-term trading strategies. The indicator was developed by Gerald Appel and is one of the most well-known indicators for the stock market.
The MACD consists of two lines calculated by the difference between two moving averages. The first line is a fast moving average that targets a short period of time. The second line is a slow moving average that targets a longer period of time. In addition, a trigger line is calculated, which consists of another moving average of the MACD line.
The MACD line is the difference between the fast and slow moving average.
The greater the difference between the two lines, the more likely a subsequent price increase. The lower the difference, the more likely a subsequent price drop is.
If the MACD line crosses upwards over the trigger line, this is a buy signal that signals a potential price increase. If the MACD line crosses down below the trigger line, this is a sell signal that signals a potential price weakening.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MACD) can be adjusted and optimized as needed.
Backtesting
Backtesting give outstanding results on all timeframes and drawdowns can be reduced to a minimum level. Swing-Traders (daily charts) will see that the strategy does not give any buy signals during market corrections and bear markets.
Settings for backtesting are:
- Period from Jan 2000 until now
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
Other comments
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The trend-template qualifier is highly selective and filters out the most promising swing-trading entries. As a result, you will normally only find a single-digit number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• As a result, traders need to apply this strategy for a full watchlist rather than just one financial security.
[TTI] Minervini's Stock Under Pressure––––History & Credit––––
📚 Credit: This script is inspired by Mark Minervini's book, "Trade Like a Stock Market Wizard". The book is a must-read for any stock trader or investor, and it's where the idea for this indicator came from.
–––––What it does––––
💡 What it does: The Minervini's Stock Under Pressure Indicator is a powerful tool for stock traders and investors. It helps to identify when a stock is under pressure and less likely to breakout and continue its upward movement.
📈 How it works: The indicator uses price action and various moving averages to calculate when a stock is under pressure. It provides a clear signal in the when a stock is struggling to move higher by printing puple color on the pane, so you can adjust your trading strategy accordingly.
–––––How to use it––––
👨💼 How to use it: You can use the Minervini's Stock Under Pressure Indicator as an additional criteria while deciding whether a stock is likely to breakout. If the indicator is showing that the stock is under pressure, then you may want to wait for a better entry point or avoid the stock altogether. Remember trading is probabilities game.
📊 Calculations: The indicator is based on a complex calculation, but you don't need to worry about the details. All you need to do is to look for the signal and act accordingly.
💻 Installation: To use the indicator, simply install it on your TradingView chart and adjust the settings as necessary. You can customize the indicator to fit your trading style and preferences.
🚀 Get ready to trade like a stock market wizard with the Minervini's Stock Under Pressure Indicator!
[GTH] Minervini++ (Minervini's trend template, augmented)This indicator summarizes many of famous trader Mark Minervini's investment criteria into one (hopefully) easy to read indicator.
It is comprised of two general sections: technical and fundamental.
Within the technical section there are 4/5 groups:
(1) Price location (above SMA 50/150/200). Optional: EMA 21
(2) SMAs sequence (SMA 50 above SMA 150 above SMA 200). Optional: EMA 21
(3) SMAs trending, based on a 21 day lookback (adjustable). Optional: EMA 21
(4) Price range (between 25% above 52W low and 25% below 52W high, adjustable)
(5) Optional: Relative Strength (MarketSmith style) in comparison to the SPY (adjustable). Disabled by default, since I personally don't find it very meaningful.
Within the fundamental section there are three groups:
(1) EPS growth over 4 quarters (adjustable), average growth over before mentioned number of quarters, growth acceleration over the same
(2) Revenue, same as for EPS
(3) Net Profit Margin, same as for EPS
There is a "LED" in front of every criterion. If fulfilled it's green, otherwise red. The horizontal "LED strips" summarize the results in a sorted manner, from left to right: green, yellow, red.
The indicator also plots the (EMA 21)/SMA 50/150/200 lines used by Minervini by default (can be disabled). The location on the screen can be chosen, as well as the text size. By default the 52W high/low lines are plotted as well (can be disabled).
Notes:
Although the calculations and values displayed at the right border are based on internally retrieved daily price data and should therefore be independent from the chart's time frame, at times some figures change when a different timeframe is selected.
On rare occasions the indicator is not displayed, but appears after reloading the chart.
TAPLOT Moving Average with UptrendMark Minervini's #3 Trend Template requirement is for the 200 day moving average line to be trending up for at least 1 month but preferably 4 to 5 months at a minimum.
A stock with 200 day moving average trending up for 1+ month is potentially making an "early turn" into stage 2 uptrend.
Most often, stocks with 200 day moving average trending up for 4+ months is indicative of a stock in a stage 2 uptrend.
This simple indicator colors the moving average line BLUE for stocks with 200 MA trending up for 1+ month and CYAN for ones with 200 MA trending up for 4+ months.
The indicator provides fast and simple way to visualize the long term trend and help trend following traders stay on the right side of the trade.
Indicator is customizable from colors to line thickness.
Thank you!
[TTI] Volume +HISTORY AND CREDIT ––––––––––––––––––––––––––––––––––––––––––––––––––––
This indicator combines all that I have found useful throughout the years about volume analysis. Shoutout of people, whose rules I have used to make the indicator goes to: Mark Minervini, William O'Neil, Gil Morales, Dan Zanger, David Ryan
WHAT IT DOES ––––––––––––––––––––––––––––––––––––––––––––––––––––
The indicator plots the Volume series and highlights to bring the trader's attention to important rules. Most of the settings are color settings that show when a condition is being met.
👉 Pocket Pivot = Up Volume today > Highest Down volume in 10 pervious days
👉 Inverse Pocket Pivot = Down Volume today > Highest Up volume in 10 pervious days
👉 Lowest Volume = Very low volume in the past 10 days
👉 Simple Moving average of Volume
👉 Highlight when Volume is above SMA = ability to highlight different colors for up and down volume
👉 Biggest volume in 252 Days (up and down)
👉 Table with summary of important information
HOW TO USE ––––––––––––––––––––––––––––––––––––––––––––––––––––
I usually consult volume a lot while trading. My general advise is to look for above average volume on up days indicating strong institutional accumulation. Conversely when there are a lot of highlighted above average down volume days its good to be cautious of the stock.
Minervini QualifierThe Minervini Qualifier indicator calculates the qualifying conditions from Mark Minervini’s book “Trade like a Stock Market Wizard”.
The condition matching is been shown as fill color inside an SMA 20day envelope curve.
If the envelope color is red, current close price is below the SMA20 and when blue, current close price is above the SMA20. The fill color can be transparent (not matching qualifying conditions), yellow (matching all conditions except close is still below SMA50), green (all conditions match, SMA200 trending for at least one month up) or blue (all conditions match, SMA200 trending up for at least 5 months)
As I wanted also to see which of the qualifying conditions match over time, I’ve added add. lines, each representing one conditions. If it matches, line color is blue, or red if not. Use the data windows (right side), so you know what line represents which condition. Can be turned on/off (default:on)
In addition, a relative strength is been calculated, to compare the stock to a reference index. It is just one possible way to calculate it, might be different to what Mark Minervini is using. If the shown value (top right) is above 100, stock performs better compared to reference index (can be set in settings), when below 100, stock performs worse compared to reference index. Can be turned on/off (default:on)
How to use it:
For more details, read Mark’s book and watch his videos.
Limitations:
It gives only useful information on daily timeframe
(No financial advise, for testing purposes only)
[TTI] Minervini MonAlertHISTORY AND CREDITS–––––––––––––––––––––––––––––––––––––––––––––––––––––––
The inspiration for this script comes from the stealth platform functionality by Mark Minervini, that he calls MonAlert. The acronym for which comes from Monitor and Alert. The indicator has been developed for the traders, who would like to have "Minervini-like" eyes on technical setups for confirmation and violations. It paints on the chart the things that Mark looks for pre and post buy to confirm or violate the trade.
WHAT IT DOES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The script provides visual and summarised view for technical confirmation and violations of the chart.
The main functionality comes in the form of a button called "Mon Alert". For quick comprehension, the label changes colors and can be 3 colors:
🟩. Green means that confirmations > violations
🟨 Yellow means that confirmations = violations
🟥 Red means that confirmations < violations
When you hover on top of the shape you get a quick report of the technical health of the chart:
👈 click to watch video
The report summarised over 42 different signals in ONE!!
20 violations, 19 confirmations and 3 warning signs
The signals group as follows:
👉 Rules 1-3 deal with the position of the price against the configured Moving averages
👉 Rules 4 & 5 deal with Volume calculations. In essence how does the volume on up days compare against volume on down days. Also how much was the breakout volume compared to the highest down volume.
👉 Rules 6-8 deal with price patterns. The indicator looks if the price pattern has printed 3 lower lows, the number of good vs ad closes as well as respect of the breakout day low
👉 Rules 9-11 deal with the Weekly and Daily patterns. In essence we look for consecutive up weeks, big down weeks on large volume
👉 Rules 12-13 deal with % advancements. There is a famous rule of William O'Neil about stock making 20% advancement. The script also looks for significant advancements like 3% declines or advancements
👉 Rule 14-15 deal with Distribution counts, Number of closes on high vs Number of closes on low as well as Angle D setup, a term coined by Mark of the price close vs 50D SMA.
Additionally, there is the functionality to plot these on the exact bar when they occur.
All signals use price action and volume action only to determine whether the action is confirming or violating. The rules also employ calculations around the moving averages to determine results. The indicator only takes into account price action from the date onwards only.
HOW TO USE IT–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The indicator is great for people who want to train their eyes on the confirmations and violations of a setup BEFORE or AFTER they make a position.
After you load the script you choose from when does the MonAlert start working, you do this by selecting vertical time line and after a few seconds of calculations the indicator appears with the report.
When the violations pile on (e.g. MonAlert button is red), this signals the trader that it is not favorable to stay in the stock anymore and hence close any long position.
On the contrary, when the MonAlert button is green, then the trader is advised to keep position.
[TTI] Fundamentals TableHISTORY AND CREDITS –––––––––––––––––––––––––––––––––––––––––––––––––––––––
I trade using TECHNICAL(70%) and FUNDAMENTAL(30%) Analysis. The table is inspired from my friend TED from BOOM traders who understands fundamentals very deeply. The structure and measures are inspired from the work of William O'Neil and Mark Minervini - recommending all their books.
WHAT IT DOES ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The table is there to show the most important fundamentals we use for trading.
The indicator can be customised as to the position of the table and its coloring.
Measures:
Revenue
EPS
Net Profit Margin
IPO
Inventories
Receivable
All headers have tooltip to give idea how to use the indicator.
HOW TO USE IT –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Use the 3 dot system to determine if all things fall in place.
🟢 🟢 🟢 - this is the highest rating for a measure.
First dot = Increase from previous period
Second dot = Increase from 2 periods before
Third dot = Growth is accelerating.
EPS>20% = EPS have grown over 20% in last period
TDSG = Triple Digit Sales Growth
Code 33 = Mark Minervini rule
B/O EPS = Year with breakout of EPS
2Q AVG = 2 Quarters with growth over 20%
INV vs SAL = green means sales grow faster than inventories
REC vs SAL = green means sales grow faster than receivables
EST vs SAL = green means that estimates are higher than last period
Mark MinerviniHi everyone,
Just sharing a script that I made when I began to be interested in Mark Minervini, Wiliam O'Neil, Nicolas Darvas,.. trading style.
This script displays :
- 10 EMA (orange)
- 20 EMA (blue light)
- 50 SMA (blue)
-150 SMA (green)
-200 SMA (red)
- Shows when the stock is "extended" from EMA10 to high of the candle (Works in Daily, you can adjust the % to make it match with the stock's volatility)
(Shows a red area between price and 10 EMA)
- Shows when Mark Minervini's trend template is respected by highlighting green between 150 & 200 SMA.
I Although added bollinger bands and 5 EMA for very strong stocks. (I never use them)
Have fun
TwP: Mark Minervini Trend Template CriteriaIn his book ' Think & Trade Like a Champion ', Mark Minervini gave his famous Trend Template Criteria , that he uses for screening stocks. According to that, a stock must meet the following 8 criteria to be deemed in a confirmed Stage 2 uptrend:
1. The current 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 4–5 months minimum in most cases).
4. The 50-day (10-week) moving average is above both the 150-day and 200-day moving averages.
5. The current stock price is trading above the 50-day moving average.
6. The current stock price is at least 25% above its 52-week low (30% as per his book 'Trade Like a Stock Market Wizard').
7. The current stock price is within at least 25% of its 52-week high (the closer to a new high the better).
8. The Relative Strength ranking (RS ranking), as reported in Investor’s Business Daily, is no less than 70.
This script checks if the above-mentioned Mark's Trend Template Criteria is being met or not (except for the last condition #8 ( RS ranking above 70), which cannot be obtained) .
Green dot indicates condition met, and Red dot indicates condition not met.
If you want to see only the final result, instead of the status of each condition, you can choose the option of hiding individual conditions from the Settings tab.
You can also change the color & location of the table in the Settings tab.
Using Bar Replay mode, you can also go back on any date historically to check if the said criteria were met on that particular date.
Unfortunately, at present, it is not possible to screen stocks on TradingView that meet Mark Minervini's Trend Template Criteria.
Feel free to use. Click on Add to favorite indicators below to start using the script.
TwP: Financials on ChartsWith this indicator, you can see the following on a chart:
> An Info Panel , with the financial snapshot of the company, such as its market capitalization, annual & quarterly financials, Y/Y growth numbers, profitability margins, RoE & RoCE, and valuation ratios.
> EBITDA and PAT margins over a period of time.
> RoE and RoCE ratios over a period of time.
> Valuation multiples over a period of time.
> A comparison of margins, return ratios, and valuation multiples with any peer-group company .
Info Panel
This gives a quick snapshot of the financials of the company, which includes annual & quarterly Revenue, EBITDA, PAT, margins with Y/Y changes, Debt-Equity ratio, ROE, ROCE, and valuation multiples.
Profitability & Return Ratios
You can view quarterly as well as annual EBITDA & PAT margins and annual RoE, RoCE. You can choose to see these ratios either only for the company or can also add a peer company to compare.
Valuation Ratios
You can view TTM valuation ratios such as EV/Sales, EV/EBITDA, P/BV & P/E multiples. You can choose to see these valuation multiples either only for the company or can also add a peer company to compare.
