1/
Most traders buy random breakouts.
Qullamaggie buys the TOP 1-2% strongest stocks.
After a BIG move.
Near the MAs.
In a strong market.
That's the entire edge.
Complete playbook below. 🧵
2/ THE MARKET FILTER (non-negotiable)
Before ANY trade, check the index:
Before ANY trade, check the index:
NASDAQ 10 SMA > 21 SMA, both rising?
✅ Trade breakouts. Full size.
❌ Flat or declining? Sit in CASH.
✅ Trade breakouts. Full size.
❌ Flat or declining? Sit in CASH.
"Cash is a position."
Breakouts fail in bad markets. Always.
Breakouts fail in bad markets. Always.
3/ BUILD YOUR UNIVERSE
A stock only goes on your watchlist when:
→ It just made a 30%+ power move
→ ALL three MAs (10, 21, 50) are turning higher
A stock only goes on your watchlist when:
→ It just made a 30%+ power move
→ ALL three MAs (10, 21, 50) are turning higher
Then you WAIT for the 10 SMA to catch up to price.
When price is sitting ON the rising 10 SMA:
= Setup is loading. Start stalking.
When price is sitting ON the rising 10 SMA:
= Setup is loading. Start stalking.
"When it makes a big move and the 10, 20, and 50
start moving higher — this is when you start stalking."
— Qullamaggie
start moving higher — this is when you start stalking."
— Qullamaggie
4/ SCAN FILTERS
→ 1M return: +30-150%
→ 3M return: +50-300%
→ Within 25% of 52-week high
→ Price hugging 10 or 21 SMA (within 1x ADR)
→ 10 SMA > 21 SMA, BOTH rising at 45° angle
→ ADR ≥ 4%
→ RS Rank ≥ 85
→ Float < 200M preferred
→ HOT sector/theme ✅
→ NOT up 3+ days in a row
→ 1M return: +30-150%
→ 3M return: +50-300%
→ Within 25% of 52-week high
→ Price hugging 10 or 21 SMA (within 1x ADR)
→ 10 SMA > 21 SMA, BOTH rising at 45° angle
→ ADR ≥ 4%
→ RS Rank ≥ 85
→ Float < 200M preferred
→ HOT sector/theme ✅
→ NOT up 3+ days in a row
No theme = no tailwind = no trade.
5/ THE PATTERN (5 phases — same visual every time)
1️⃣ Power move: 30-100%+ on 2-5x avg volume
2️⃣ Pullback: 10-20%, volume MUST dry up
3️⃣ Higher lows: 2-3+ stepping up the rising 10/21 SMA
4️⃣ Tight range: 5-day range <10%, vol <70% avg
5️⃣ Breakout: Range expansion on 2-3x volume, close near HOD
1️⃣ Power move: 30-100%+ on 2-5x avg volume
2️⃣ Pullback: 10-20%, volume MUST dry up
3️⃣ Higher lows: 2-3+ stepping up the rising 10/21 SMA
4️⃣ Tight range: 5-day range <10%, vol <70% avg
5️⃣ Breakout: Range expansion on 2-3x volume, close near HOD
Don't buy the flagpole. Buy the COIL.
5B/ THE VISUAL FINGERPRINT: TIGHT & THIN CANDLES
This is what you're actually scanning for visually.
This is what you're actually scanning for visually.
During the consolidation:
→ Candles get SMALLER each day
→ Body shrinks (open-close range compresses)
→ Wicks shrink (high-low range tightens)
→ Each day barely moves from the last
→ Candles get SMALLER each day
→ Body shrinks (open-close range compresses)
→ Wicks shrink (high-low range tightens)
→ Each day barely moves from the last
That tightening = sellers are exhausted.
No more supply hitting the market.
Institutions are quietly absorbing every share.
No more supply hitting the market.
Institutions are quietly absorbing every share.
VCP signal:
5-day range < 10% of lowest low
Volume < 70% of 20-day avg
5-day range < 10% of lowest low
Volume < 70% of 20-day avg
Wide candles → medium → tiny → EXPLOSION.
That next expansion candle is the breakout.
The spring releasing.
That next expansion candle is the breakout.
The spring releasing.
5C/ VOLUME DRYING UP = THE #1 TELL
Declining volume during the flag isn't optional.
It's the ENTIRE signal.
Declining volume during the flag isn't optional.
It's the ENTIRE signal.
What it means:
→ Sellers gave up
→ Supply absorbed at this level
→ Smart money loaded up quietly
→ Only buyers remain when breakout fires
→ Sellers gave up
→ Supply absorbed at this level
→ Smart money loaded up quietly
→ Only buyers remain when breakout fires
What you want to see:
Day 1 of pullback: 80% of avg volume
Day 2: 60%
Day 3: 45%
Day 4: 30% ← VooDoo day. Perfect.
Day 1 of pullback: 80% of avg volume
Day 2: 60%
Day 3: 45%
Day 4: 30% ← VooDoo day. Perfect.
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