How To Get Weekly Lists of Stocks With Explosive Potential

How To Get Weekly Lists of Stocks with Explosive Potential A Special Report from VCP Screener

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How To Get Weekly Lists of Stocks with Explosive Potential

W

ouldn’t it be great if you could receive a weekly list of stocks each with the imminent potential to make substantial gains?

Well now you can with VCPScreener.com Every week VCP Screener scans over 16,000 stocks and ETFs so you don’t have to: Every week VCP Screener examines stocks and ETFs on the NYSE, NASDAQ, LSE, TSX and TSXV. Every week VCP Screener sends you a list of likely candidates which will be either.…

• A stock breaking above a Volatility Contraction Pattern or the “Handle” of a Cup and Handle Pattern, or • A stock breaking above a Continuation Pattern.

What used to be a time consuming and daunting task is all done for you.

Now none of us have control over stock movements. So some weeks the list will contain lots of candidates. Some weeks will only have a few. And occasionally a week will have none at all.

If the explosive potential of a “Cup And Handle” pattern is new to you, here’s an explanation and example.

The Cup and Handle pattern You may know the “Handle” pattern as an Area of Accumulation or an Area of Congestion. In his book “Trade Like A Stock Market Wizard” Mark Minervini calls the “Handle” a “Volatility Contraction Pattern”. As more people buy his book, this name has become very popular.

These various names all describe the same thing: • An area where price moves sideways relative to its previous sharp rise.

• A period of several weeks or months during which volume decreases as market makers accumulate long positions.

In case these concepts are new to you here is an example of the price action of Apple, chosen because it’s so familiar:

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Price spent most of 2013 falling to just below $14 before gently rising to form a pattern generally referred to as a “cup”.

Having experienced a substantial rise, price began moving sideways as profits were taken. This area of price congestion formed the “handle” of the cup.

During its formation volume reduced. A sure sign that market participants were accumulating long positions.

In May 2014 the eventual break of price above the upper resistance (top of the handle/consolidation rectangle) was accompanied by an increase in volume above the (blue) volume MA (line). A sure sign that the accumulation phase was complete.

The close above resistance gave an ideal entry point to go long. And the support line (bottom of the congestion handle/rectangle) was a natural place for entering a protective Stop Loss just in case the breakout was false.

In the event Apple’s stock price rose over 50% in just under a year.

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Why VCP Screener uses weekly charts VCP Screener is not aimed at those who wish to day trade or take short term positions.

It is aimed at investors and traders who wish to ride stocks for weeks, months, even years.

It uses charts on the weekly time frame because: • Weekly charts provide less whipsawing and a higher degree of accuracy.

• For longer term traders the lower time frames have too much noise leading to more losses.

• Plus, longer term traders and investors do not necessarily want to spend too much time in their endeavours. Checking charts once a week should be adequate.

(These comments apply specifically to stocks. They do not apply to other instruments such as commodities and forex, which react well to lower time frames, but with which this report does not concern itself.)

What VCP Screener does each week To find opportunities the VCP Screener examines multiple exchanges every week using the following screens to identify suitable candidates and possible entry points.

SCREEN 1 – Trend Template In his book “Trade Like A Stock Market Wizard” Mark Minervini explains how he uses his Trend Template as an initial screen to drastically reduce the chance of entering a false breakout. Stocks will only be considered if they conform to the Trend Template, which has eight requirements: 1. The current stock price is above both the 150-day (30-week) and the 200day (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 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 30 percent above its 52-week low. (Many of the best selections will be 100 percent, 300 percent, or greater above their 52-week low before they emerge from a solid consolidation period and mount a large scale advance.)

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VCPScreener.com 7. The current stock price is within at least 25 percent of its 52-week high (the closer to a new high the better).

8. The relative strength ranking as reported in Investor's Business Daily is no less than 70 and preferably in the 80s or 90s, which will generally be the case with the better selections.* * It should be noted that the VCP Screener does not use IBD relative strength rankings but a proprietary relative strength formula that closely matches it.

All alerts provided by the VCP Screener are for stocks that are qualified by Mark Minervini's Trend Template.

SCREEN 2 – Financial Strength Some things in life are too good to be true. And stocks are no exception. To avoid selecting stocks that are of low financial strength, VCP Screener uses two scoring methods:

1. Beneish M-Score A Beneish M-Score is a mathematical model that uses eight financial ratios to identify whether a company has managed or manipulated its earnings.

Enron Corporation was correctly identified as an earnings manipulator by students from Cornell University using M-Score at a time when Wall Street analysts were still recommending it as a buy.

A Beneish M-Score of less than -2.222 suggests that the company will not be a manipulator. Whereas an M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

2. Altman Z-Score The Altman Z-Score is based on five financial ratios to measure the likelihood that a company will go bankrupt.

A score below 1.8 means the company is probably headed for bankruptcy, while companies with scores above 3 are not likely to go bankrupt.

VCP Screener screens for stocks with a Beneish M-Score of less than -2.222 and/or an Altman Z-Score greater than 3.

SCREEN 3 – Speed Some stocks move very slowly whilst others race ahead. It makes sense to be invested in faster moving stocks to prevent capital being tied up in laggards.

VCP Screener attempts to segregate those stocks that move quickly by using a proprietary ratio derived from average price and average true range.

VCP Screener excludes stocks that are deemed to be slow movers.

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VCPScreener.com SCREEN 4 – Velocity Contraction Pattern A prospective stock will have seen a steep advance in price over several weeks or months, followed by a period of congestion to form the classic Cup and Handle pattern.

VCP Screener seeks to identify when stocks are breaking out of a “Handle” or Velocity Contraction Pattern.

SCREEN 5 – Fractals Fractal highs and fractal lows create resistance and support. Price penetration of a fractal may signal a change in direction especially when a price bar doesn't just penetrate but closes beyond the fractal.

VCP Screener indicates when a stock’s price has closed above a previous weekly high fractal resistance level. This may coincide with a break above a “Handle” or may indicate an opportunity to add to an existing position.

SCREEN 6 – The Parabolic Time/Price System Whilst most often used as a trailing stop loss, the PSAR can also indicate suitable long entry points.

VCP Screener indicates when a stock’s price has touched or closed above a weekly PSAR buy point. This will usually occur prior to a break above fractal resistance or a break above a “Handle” thus offering a more aggressive entry. Or may indicate an opportunity to add to an existing position.

What you get as a subscriber…

• A weekly list of stocks that have passed the qualifying screens.

• An indication of which entry qualifiers each has passed based on the weekly time frame.

• A weekly list of their symbols as a text file, which can be imported into the TradingView.com charting app.

• As well as “Handle” breakouts, the weekly list will also include subsequent accumulation breakouts that may provide opportunities to increase position size. Or re-enter if already stopped out.

• You may also receive mid-week messages as and when appropriate.

What you do not get…

• You do not get specific entry signals.

• Instead you will receive the VCPScreener Trading Guide that suggests entry and exit strategies. And pays special attention to money management without which no trader or investor can be successful. :5:

VCPScreener.com It should be understood that, because every subscriber has different objectives and expectations, it is the responsibility of each individual to decide when and at what price an entry may be appropriate. And it is incumbent upon each individual to decide whether or not to seek professional advice before entering a position.

Get Your Free 30-Day Trial of VCPScreener PLUS get the VCPScreener Trading Guide that details: • Entry methods • Exit Methods • Essential Money Management • Secret Key To Success (All successful traders and investors do this. Others do not.)

Thereafter a subscription costs $29/month or $290/year (saving $58) To get started click here:

VCPSCREENER.COM or copy and paste into your web browser:

bit.ly/vcps_2

It costs nothing to try, so get it now…

P.S. Remember a free trial costs nothing, you get to keep the trading guide and you can cancel at anytime.

P.P.S. The profits from your free trial might well exceed the total annual subscription cost

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