How the screens work

A leader pauses, and each pullback inside the pause is shallower than the one before it.

1. 1Prior uptrendThe stock was already going up before the pause started.
2. 2The baseA stretch of weeks where it goes sideways instead of up.
3. 3ContractionsEach pullback inside the base is shallower than the one before it.
4. 4Volume dry-upFewer shares change hands as the base gets tighter.
5. 5The pivotThe ceiling at the top of the base — the price it has to clear.
6. 6BreakoutA close above the pivot.
7. 7ClimbingIt cleared the pivot earlier and is still above its trailing line.

Every number below is a dial you can move in Filters.

1. The liquid US universe
   US common stocks over $5, market cap over $300M, and at least $5M traded a day over the last 20 sessions.
2. Leadership
   Relative strength rating of 70 or better.
3. Above its 50-day line
   Price is above the average of the last 50 days.
4. Above its 200-day line
   Price is above the average of the last 200 days.
5. Still near its highs
   Within 30% of its highest price of the last year.
6. Where we look for the ceiling
   The pivot is the highest price of the last 24 weeks.
7. Long enough to be a base
   The base has lasted at least 3 weeks.
8. Not a collapse
   From its ceiling, the base never fell more than 35%.
9. The swings tighten
   The second half of the base swings no more than 0.9× as much as the first half.
10. Volume dries up
    The second half of the base trades no more than 0.9× the volume of the first half.
11. Near the trigger
    Price is no more than 20% below the pivot.

Risk is decided before entry — about 1.5% of capital on any one trade.

1. 1
   Buy the breakout
   As it pushes through the pivot.
2. 2
   Set a safety net
   An automatic exit if it drops about 8% from where you got in.
3. 3
   Lock in "no loss"
   Once it is up enough, move that net to where you started.
4. 4
   Ride the trend
   Raise the net as it climbs.
5. 5
   Step off
   When the trend breaks.