OPEN-SOURCE SCRIPT
Minervini Power Play Indicator
### 📝 **Description:**
**Overview**
This indicator is designed to detect one of the most explosive and highly coveted chart patterns in the stock market: the **Power Play** (also known as the High Tight Flag), popularized by trading champion Mark Minervini.
The Power Play is a "velocity pattern" that occurs when a stock is experiencing a massive fundamental catalyst or extreme supply/demand imbalance, leading to a parabolic thrust followed by a shallow, tight consolidation.
**How It Works (The Math)**
This script filters for the strict mathematical criteria required for a true Power Play:
1. **The Thrust:** The stock must have surged by at least 100% (price doubled) within a period of 8 weeks (40 trading days) or less.
2. **The Pullback (Depth):** During the subsequent consolidation, the stock must not pull back more than 20% to 25% from the absolute peak of the thrust.
3. **The Consolidation:** The stock must be trading sideways or slightly down (not immediately making new highs).
When all these conditions are met, a **Yellow Circle** will plot below the daily candle, alerting you that the stock is in a valid Power Play consolidation zone.
**Customizable Parameters**
- **Thrust Period:** Default is 40 trading days (approx. 8 weeks).
- **Minimum Gain Multiplier:** Default is 2.0 (representing a 100% gain from the lowest low to the highest high).
- **Maximum Pullback:** Default is 0.25 (allowing a maximum 25% correction from the highest high).
**⚠️ How to Trade It (Crucial)**
This indicator serves as an **alert system**, NOT a blind buy signal. While the script calculates the math perfectly, algorithms cannot visually identify a Volatility Contraction Pattern (VCP).
When the yellow dot appears, you must manually inspect the chart for:
- **Price Tightness:** The daily ranges should be visibly contracting from left to right.
- **Volume Dry-Up:** Volume should shrink dramatically during the tightest areas of the flag.
- **Entry & Stop:** Buy the breakout above the pivot point of the tightest area, and place a strict, tight stop-loss just below that consolidation. If the stock drops below the 25% threshold, the dots will disappear, indicating the setup has failed.
*(Disclaimer: This script is for educational purposes only. Always combine indicator alerts with manual visual confirmation and strict risk management.)*
**Overview**
This indicator is designed to detect one of the most explosive and highly coveted chart patterns in the stock market: the **Power Play** (also known as the High Tight Flag), popularized by trading champion Mark Minervini.
The Power Play is a "velocity pattern" that occurs when a stock is experiencing a massive fundamental catalyst or extreme supply/demand imbalance, leading to a parabolic thrust followed by a shallow, tight consolidation.
**How It Works (The Math)**
This script filters for the strict mathematical criteria required for a true Power Play:
1. **The Thrust:** The stock must have surged by at least 100% (price doubled) within a period of 8 weeks (40 trading days) or less.
2. **The Pullback (Depth):** During the subsequent consolidation, the stock must not pull back more than 20% to 25% from the absolute peak of the thrust.
3. **The Consolidation:** The stock must be trading sideways or slightly down (not immediately making new highs).
When all these conditions are met, a **Yellow Circle** will plot below the daily candle, alerting you that the stock is in a valid Power Play consolidation zone.
**Customizable Parameters**
- **Thrust Period:** Default is 40 trading days (approx. 8 weeks).
- **Minimum Gain Multiplier:** Default is 2.0 (representing a 100% gain from the lowest low to the highest high).
- **Maximum Pullback:** Default is 0.25 (allowing a maximum 25% correction from the highest high).
**⚠️ How to Trade It (Crucial)**
This indicator serves as an **alert system**, NOT a blind buy signal. While the script calculates the math perfectly, algorithms cannot visually identify a Volatility Contraction Pattern (VCP).
When the yellow dot appears, you must manually inspect the chart for:
- **Price Tightness:** The daily ranges should be visibly contracting from left to right.
- **Volume Dry-Up:** Volume should shrink dramatically during the tightest areas of the flag.
- **Entry & Stop:** Buy the breakout above the pivot point of the tightest area, and place a strict, tight stop-loss just below that consolidation. If the stock drops below the 25% threshold, the dots will disappear, indicating the setup has failed.
*(Disclaimer: This script is for educational purposes only. Always combine indicator alerts with manual visual confirmation and strict risk management.)*
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.