Pattern Library
Legend AI scans for 18 chart patterns drawn from the Minervini, O'Neil, Weinstein, Darvas, and Wyckoff methodologies. Each card is a self-contained guide — read it, learn the rules, then watch for the setup in today's Setups.
VCP
Volatility Contraction Pattern
Minervini's signature setup. Three or more progressively tighter price contractions inside a base — each with a smaller range and declining volume. The stock is shaking out weak holders and building a tight coil before the breakout.
Cup & Handle
Cup and Handle Base
O'Neil's classic setup from 'How to Make Money in Stocks.' A rounded U-shaped base (the cup) followed by a short, shallow pullback (the handle). The handle shakes out the last weak holders before the breakout.
Bull Flag
Bull Flag Continuation
A tight, orderly pullback after a sharp vertical advance. The flag trades sideways or slightly downward on declining volume, then resolves with a breakout that continues the prior uptrend.
Pocket Pivot
Pocket Pivot
Discovered by Gil Morales and Chris Kacher (former O'Neil portfolio managers). A volume surge off a key moving average where the up-day volume exceeds any down-day volume in the prior 10 sessions — institutional accumulation footprint inside an uptrend.
Three Weeks Tight
Three Weeks Tight
Three consecutive weekly closes within roughly 1% of each other. Signals strong institutional holding — supply has dried up completely. A textbook add-on point in an established uptrend.
Darvas Box
Darvas Box Theory
Nicolas Darvas's mechanical method. Identify a 'box' as a horizontal range bounded by a recent new high and the subsequent pullback low. Buy the breakout above the box top; sell if it breaks below the box bottom.
Stage 2 Breakout
Weinstein Stage 2 Breakout
Stan Weinstein's foundational setup: stock breaks out of a Stage 1 base (consolidation above the 30-week MA) with the 30-week MA turning up. The breakout marks the transition into Stage 2 (advancing) — Weinstein's primary buy phase.
Wyckoff Spring
Wyckoff Spring (Phase C)
Wyckoff's most famous setup. A final shakeout below the trading range support that quickly reverses back into the range — trapping shorts and giving the Composite Operator the last cheap inventory before markup.
Wyckoff SOS
Wyckoff Sign of Strength
A wide-spread, high-volume bar that decisively breaks above the trading range high — the moment Phase D begins and the markup is underway. Wyckoff's confirmation that the Composite Operator is now lifting prices.
Ascending Triangle
Ascending Triangle
Flat resistance at the top, rising lows below — a coil where buyers are willing to pay higher prices each test while sellers defend a fixed line. Resolves with a breakout above the flat top on volume.
Falling Wedge
Falling Wedge
Two converging downsloping trendlines with contracting volume — a wedge where each rally and pullback gets tighter. Despite the bearish-looking slope, the contraction signals exhaustion of supply. Resolves with an upside breakout.
Base Breakout
Generic Base Breakout
A simple horizontal consolidation that resolves with a breakout above the range high on heavy volume. The catch-all for breakouts that don't fit a more specific pattern (VCP, Cup & Handle, etc.) but show clean accumulation.
Flat Base
Flat Base
O'Neil's second-stage setup. After a stock has already made a meaningful advance, it consolidates in a tight, flat range — no more than 15% depth — for at least five weeks. Flat is the key word: there's no rounding or dramatic dip. This shows the stock is under heavy accumulation and sellers can't push it down.
Power Play
Power Play
Minervini's most powerful setup — reserved for the strongest stocks in the strongest markets. A Power Play occurs when a stock is already in a confirmed Stage 2 uptrend, has a near-perfect SEPA score, and explodes through a pivot on massive volume in a leading market group. It's a full-sized, immediate buy, not a probe.
High Tight Flag
High Tight Flag
One of O'Neil's rarest and most powerful patterns. The stock doubles or more in 4–8 weeks (the pole), then consolidates 10–25% for 3–5 weeks in a tight flag. The HTF signals a stock with explosive earnings and explosive institutional demand. When it breaks out, it often continues with another 100%+ move.
Pennant
Pennant Continuation
A symmetrical triangle that forms after a strong price advance, with converging trendlines on both sides and contracting volume. Unlike a full symmetrical triangle, a pennant is small and brief — a 1–4 week pause in an ongoing trend. It resolves with continuation of the prior move.
MA Pullback
Moving Average Pullback
Weinstein's core add-on setup. In an established Stage 2 uptrend, the stock pulls back to the 10-week or 30-week moving average on declining volume — a normal correction within the trend. Offers a lower-risk entry close to a well-defined stop with the trend behind you.
Basing
Basing / Stage 1 Accumulation
Weinstein's Stage 1 — the long, sideways accumulation phase where a stock trades in a choppy range, often below its 30-week MA or as it flattens. This is where smart money quietly builds positions before the Stage 2 breakout. Not a buy yet — but a stock to watch closely.