Mark Minervini’s Favorite Chart Setup The “Cheat” | IBD Live

TL;DR

This video discusses a chart setup known as the cup completion cheat, which is a variation of the cup and handle pattern. It also emphasizes the importance of volatility contraction patterns in trading.

Transcript

[Applause] well my favorite chart setup is basically a cousin of a couple handle it's what i call the cup completion cheat and then of course there would be the load sheet and that's just sort of a coupled handle but the handle is in the lower either lower one-third of the middle one-third where the coupled handle would be in the upper one-third th... Read More

Key Insights

• 💘 The cup completion cheat is a unique chart setup that often signals the completion of a cup pattern.
• 💘 Volatility contraction patterns, including the cup completion cheat, can be powerful indicators of potential price movements.
• 😃 Big IPOs can present attractive trading opportunities, especially when they experience a correction and show signs of volatility contraction.
• 🍵 The absence of a handle in a cup completion cheat does not necessarily invalidate the pattern's potential for a successful trade.
• 🥳 The concept of ants, or stocks that go up 12 out of 15 days with increased volume, is another valuable indicator of institutional accumulation.
• 💘 The cup completion cheat and volatility contraction patterns are consistent elements in the speaker's trading strategies.
• 💘 The speaker emphasizes the importance of combining multiple characteristics, such as volatility contraction and the cup completion cheat, for successful trades.

Summary & Key Takeaways

• The cup completion cheat is a chart pattern that occurs when a lower pivot takes place within the base before the handle forms in a cup and handle pattern.

• The cup completion cheat can be a potential entry point for trading big IPOs, particularly when they experience a correction.

• Volatility contraction patterns, such as the cup with handle and cup completion cheat, are characteristics found in successful trades.