⚠️ Uptrend Under Pressure Severe risk · 99 · Institutional selling is building — 6 distribution days in the last 25 sessions. · 6 distribution days (SPY) Full briefing → Jul 28
  Mark Minervini The Precision Sniper William O'Neil The Institutional Edge Jesse Livermore The Original Tape Reader Stan Weinstein The Stage Master Nicolas Darvas The Self-Made Trader Richard Wyckoff The Tape Reader
Core idea SEPA — superperformance stocks tighten before they break out CANSLIM — fundamentals + technicals + market direction together Price follows the line of least resistance Every stock cycles through 4 stages — only buy Stage 2 Strong stocks climb in stacked price boxes Smart money accumulates quietly before the markup
Buy trigger Breakout from a VCP pivot after contractions tighten Breakout past a cup/flat-base buy point on big volume Break of a pivotal point in the trend's direction Weekly close above a rising 30-week MA out of Stage 1 Push above the box top at new 52-week highs Spring or Sign of Strength out of accumulation
Stop discipline 7–8% absolute max — usually far tighter 7–8% below the buy point, no exceptions Out the moment the pivotal point fails Below the 30-week MA or the breakout low Just under the bottom of the current box Below the spring low / last support
Typical hold Weeks to a few months — swing the strongest move Months — ride the institutional campaign As long as the trend runs — sit tight Months to a year+ — the whole Stage 2 advance Weeks to months — until a box floor breaks The markup phase — exit into distribution
Market filter Only trades confirmed uptrends M in CANSLIM — wait for a follow-through day Trades with the broad tape, never against it Market and sector must also be Stage 2 New highs only happen in healthy markets Reads the whole tape's accumulation/distribution
Fundamentals? Yes — accelerating earnings & sales back the chart Heavy — C, A, N are earnings and innovation No — pure price and volume Light — price/volume and sector strength lead Techno-fundamental — a growth story plus the box No — supply and demand are the only facts
Never does Average down or hold laggards Buy low-RS stocks or fight the market Take tips or argue with the tape Buy Stage 4 declines or guess at bottoms Buy cheap stocks or second-guess his stops Chase moves without cause built first
Adding to winners Concentrates in the few best names Pyramids small after the breakout works Adds at each confirming pivotal point Adds on pullbacks to the rising 30-week MA Adds as each new box forms higher Adds at the Last Point of Support
Best fit for Precise swing traders who love risk control Growth investors who enjoy research Patient trend riders Part-time traders on weekly charts Rule followers who can't watch all day Chart readers fascinated by volume
Scanner patterns VCP Power Play Three Weeks Tight High Tight Flag Cup & Handle Flat Base Pocket Pivot Bull Flag Pennant Falling Wedge Inverse Head & Shoulders MA Pullback Basing Rising Wedge Darvas Box Ascending Triangle Base Breakout Wyckoff Spring Wyckoff SOS
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Summaries are drawn from each trader's published books and public methodology. Legend AI is not affiliated with or endorsed by any featured trader. Educational only — not investment advice.