Article Image

Getting started With ChartMill For Swing and Position Traders in Growth Stocks

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Feb 15, 2024

Typical growth stocks are expected to grow significantly faster than the market average. Any profits are primarily reinvested to accelerate the growth trajectory.

Unlike the typical quality stocks that can show off an impressive track record, these types of stocks are about companies that are still in their growth phase.

The basis of growth stocks is rising and accelerating sales and earnings. In this article, we will cover some basic trading ideas in ChartMill that will get you started for swing and position trading in growth stocks.

As a strategy, in most cases, both technical and fundamental elements are used. Stocks that publish surprising quarterly results and are in a rising trend are the ones that are most sought after.

William O' Neil and Mark Minervini will certainly ring a bell with some traders. Both combine TA and FA to identify the best setups.

Trading Ideas for Growth Stock Traders and Investors:

These trading ideas provide a broad basic list of promising stocks with significant growth potential. This by no means implies that you may buy these stocks outright!

The technical filters used by some of the traders listed below serve precisely to best delineate the risk and timing of entry.

After all, typical growth companies can be very volatile. Take this into account if you want to invest in this type of stock.

William O'Neill CANSLIM High Growth screen

This is a base stock screener configuration for the CANSLIM system introduced by William O'Neill. CANSLIM is a system with strong fundamental criteria related mostly to EPS growth, but also has some pure technical requirements as well as entry and exit rules. Be sure to read the accompanying article.

Direct Link to this Trading Idea

Mark Minervini SEPA Ranking System

Mark is one of the few traders who has managed to bring together both technical and fundamental analysis into one comprehensive strategy where both concepts reinforce each other. However, the key to consistent long-term success lies in how risk is handled.

He is living proof that with passion and perseverance great things are possible.

Direct Link to this Trading Idea

In addition to this basic trend template, 6 other screens are available where, in addition to the basic trend template, specific parameters have been added regarding the quarterly and annual evolution of earnings and revenue growth, earnings and revenue surprises and even filters based on analyst revisions.

You can find all of these on the 'Trading ideas' page through this link.

In our documentation section there are two detailed articles available as well as two videos that explain much more about this strategy:

Louis Navellier's Little Book That Makes You Rich

This configuration of the stock screener was created based on the rules described in the book "The little book that makes you rich", by Louis Navellier.

The book defines eight criteria that should be met before a stock qualifies as growth stock which fits the system. These eight rules were converted into screener settings and there is a linked article available which discusses this screen a bit deeper.

Unlike the previous screens by O'Neill and Minervini, Louis Navellier does not use specific trend or any other technical filters.

Direct Link to this Trading Idea

Strong Growth Stocks with good Technical Setup Ratings

The Strong Growth Stock Technical Setups combines Technical and Fundamental analysis and will filter for technical breakout patterns in stocks which are growing strongly while having decent profitability and health.

For the fundamental filters, these are the Growth, Health and Profitability Rating scores.

In terms of technical analysis, the predefined ChartMIll Technical and Setup Rating scores are used.

More about the ChartMill Rating Scores can be found in this and this article.

Direct Link to this Trading Idea