Minervini uses a technique called pyramiding :
The four essential components of SEPA are: Specific Entry Point (VCP patterns at pivot points), Earnings (20%+ quarterly growth), Price Action (Trend Template and Stage 2 confirmation), and Announcement (fundamental catalysts).
AI responses may include mistakes. For financial advice, consult a professional. Learn more Share public link Minervini uses a technique called pyramiding : The
The VCP shows a stock undergoing a healthy correction, where the price swings become progressively smaller from left to right. This compression represents a systematic absorption of overhead supply. When the sellers run out of shares to dump, the volume dries up entirely. This creates a "pivot point"—a line of least resistance. When the stock breaks above this pivot point on heavy volume, it triggers a highly explosive buy signal. 🛑 The Golden Rule of Risk Management
The stock breaks below its key moving averages. Headwinds hit corporate earnings, and the price plummets. Buying the dip in Stage 4 is a financial death sentence for your account. 4. The Golden Rule of Risk Management Learn more Share public link The VCP shows
The cornerstone of Minervini's approach is (Specific Entry Point Analysis)—a trademarked methodology designed to achieve outsized returns in virtually any market condition.
Minervini's system is designed to work in any market condition—bull markets, bear markets, and everything in between. Here's how to adapt: This creates a "pivot point"—a line of least resistance
What is your for a trade (days, weeks, or months)?
Losses should be capped immediately, ideally at 5% to 8% or less.
: "Hanging on to losers is the biggest mistake in trading," Minervini writes. He famously says, "I cut my losses small every time they appear. If the market wants to beat me, it has to kill me first".
To pinpoint superperformance candidates, wizards utilize a multi-faceted filtering process that searches for the perfect convergence of corporate strength and price structural integrity: