Volatility contraction and secure entry point inspired by Minervini

The VCP by Minervini (author of the book "Trade like a stock market wizard") is very similar to the concept of classic volume dry ups from CANSLIM by O'Neil. Many VCPs are similar to classic cup & handles, but the focus is on shares with multiple contractions, which is why they look like mini-cups with many handles (T3, T4 ...). The background is that with each contraction more shares move from weak to strong hands. This screen looks for stocks that match the secure entry point analysis as closely as possible, meaning that they are in an uptrend and between the 52-week lows as highs, but just completing a pullback under volatility contraction. Relative strength must be high and some level of growth must be present. Fortunately, Chartmill offers a very powerful Growth and RS Rating that is applied here and I recommend everyone to experiment with it. The idea of the screener is to find stocks that fit these criteria and thus pre-select them for a potential swing or position trade. The screener looks for stocks that are in a consolidation. An entry into such stocks can be a high volume trendline breakout from a contraction pattern and cannot be determined without classical charting. As an example, it was possible to find the pattern in TSLA in 11.2020. This strategy works best in bull markets with institutional demand for high-growth stocks.