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How to Scan the ASX for VCP Patterns Every Week (Step-by-Step)

  • Writer: Anita Arnold
    Anita Arnold
  • Jan 18
  • 16 min read

Systematic weekly scanning for VCP patterns on the ASX requires structured methodology combining sector analysis, technical screening, and pattern verification. Mark Minervini's observation that "90% of my work is all stock work. If there's a lot of stocks then I'm bullish on the market" reflects the intensive chart work underlying successful VCP identification. Research by Moskowitz and Grinblatt (1999) demonstrated that sector momentum accounts for the majority of individual stock momentum, establishing that efficient VCP scanning begins with sector identification rather than random stock screening.

The ASX market's approximately 2,000 listed securities creates scanning challenges distinct from US markets. Liquidity concentration in the ASX 200 largest companies means that most tradeable VCP opportunities reside within this subset, though emerging opportunities occasionally surface in the ASX 300. Systematic weekly scanning processes address this universe efficiently while maintaining pattern recognition quality.

Systematic weekly ASX VCP scanning requires 90-120 minutes following a six-step methodology: sector momentum assessment identifies leading sectors, fundamental screening filters quality stocks, technical review identifies VCP patterns, verification confirms validity, watchlist organization enables monitoring, and market integration contextualizes setups. Sector-first approach improves both efficiency and effectiveness by concentrating effort within the 20-30% of sectors demonstrating leadership. (Sources: Moskowitz & Grinblatt 1999; O'Neal 2000; Jegadeesh & Titman 1993)
Systematic weekly ASX VCP scanning requires 90-120 minutes following a six-step methodology: sector momentum assessment identifies leading sectors, fundamental screening filters quality stocks, technical review identifies VCP patterns, verification confirms validity, watchlist organization enables monitoring, and market integration contextualizes setups. Sector-first approach improves both efficiency and effectiveness by concentrating effort within the 20-30% of sectors demonstrating leadership. (Sources: Moskowitz & Grinblatt 1999; O'Neal 2000; Jegadeesh & Titman 1993)

The Academic Framework for Systematic Screening

Research published in the Journal of Finance by Jegadeesh and Titman (1993) established that momentum strategies generate significant returns when applied systematically. Their findings demonstrated that buying past winners and selling past losers produces average returns of 1% monthly over 3-12 month holding periods. This momentum persistence provides the statistical foundation for systematic VCP scanning—patterns demonstrating specific momentum characteristics warrant identification and evaluation.

Subsequent research by O'Neal (2000) examining sector fund momentum strategies confirmed that systematic approaches to momentum identification outperform discretionary methods. The study found that mechanical sector selection rules based on relative strength measurements achieved superior risk-adjusted returns compared to fundamental prediction approaches. This evidence supports systematic weekly VCP scanning over sporadic opportunistic searches.

Research by Ehsani and Linnainmaa (2022) published through the National Bureau of Economic Research refined understanding of momentum transmission mechanisms, demonstrating that factor momentum subsumes much industry momentum. Their findings suggest that systematic scanning should incorporate factor awareness—particularly relative strength factors—alongside traditional technical pattern criteria. The practical implication involves screening for both VCP technical characteristics and underlying momentum factor exposures.

Fernández-Avilés et al. (2025) research in the Journal of Risk and Financial Management quantifying intra-sector correlations at 0.68-0.74 emphasizes the efficiency gains from sector-first screening. Rather than evaluating 2,000 stocks individually, sector-level momentum assessment quickly identifies the 20-30% of sectors warranting deeper stock-level analysis, reducing unnecessary chart review while maintaining coverage of high-probability opportunities.

Step 1: Sector Momentum Assessment (15-20 minutes)

Systematic weekly VCP scanning begins with sector-level momentum assessment before individual stock evaluation. This hierarchical approach, supported by academic research demonstrating sector effects account for 60-73% of momentum returns, ensures scanning effort concentrates within leading sectors where VCP patterns demonstrate highest success probability.

Calculate sector relative strength rankings for all ASX sectors against the ASX 200 index over 20-day, 50-day, and 200-day periods. This multi-timeframe analysis identifies sectors demonstrating persistent momentum rather than temporary volatility. Sectors ranking in the top 30% across all three timeframes demonstrate durable leadership characteristics.

On the ASX, sector indices include Materials, Financials, Healthcare, Consumer Discretionary, Consumer Staples, Energy, Industrials, Information Technology, Communication Services, Utilities, and Real Estate. Some data providers offer more granular subsector indices. The analysis calculates percentage change for each sector index over specified periods, then ranks sectors from strongest to weakest.

Assess sector breadth metrics within top-ranked sectors. Calculate the percentage of constituents within each leading sector trading above their 50-day and 200-day moving averages. Sectors with 70%+ of constituents above their 50-day moving average demonstrate broad participation supporting momentum strategies. Sectors showing narrow breadth (only 30-40% of constituents above moving averages) suggest fragile leadership vulnerable to reversal.

Identify new high concentrations within leading sectors. Count how many stocks within each sector are making 52-week or all-time highs. Minervini emphasizes: "This explosive action right off the market lows, that's what should get your attention, because that's one of the very first stocks to get into new high ground here, right off the correctional lows." Sectors containing multiple stocks making new highs demonstrate institutional accumulation supporting VCP pattern formation.

Note emerging thematic groupings cutting across traditional sector classifications. Observe whether multiple stocks sharing business characteristics, end-market exposures, or product categories demonstrate correlated strength across different sectors. Research by Candes et al. (2025) in the Financial Analysts Journal established that thematic baskets demonstrating statistical correlation beyond traditional sector exposures can generate meaningful returns.

This sector assessment stage typically requires 15-20 minutes weekly and produces a ranked list of 2-4 leading sectors plus any identified cross-sector themes warranting deeper stock-level analysis. This filtering reduces the subsequent screening universe from 2,000 stocks to approximately 200-400 stocks within leading sectors.

Step 2: Fundamental Quality Screening (20-30 minutes)

Within identified leading sectors, fundamental quality screening eliminates stocks unlikely to sustain momentum regardless of technical pattern quality. Minervini's SEPA (Stage, Entry, Pivot, Add) methodology emphasizes fundamental strength as prerequisite for technical pattern validity.

Screen for earnings growth acceleration over recent quarters. Companies demonstrating sequential earnings growth improvements—where current quarter growth exceeds previous quarter growth, and previous quarter exceeds the quarter before—suggest fundamental momentum supporting price momentum. Research demonstrates that earnings momentum and price momentum correlate, making earnings acceleration a reliable fundamental filter.

Evaluate revenue growth consistency over recent periods. Companies reporting consistent revenue growth over 8-12 quarters demonstrate business model durability rather than temporary earnings manipulation through cost cutting or accounting adjustments. Revenue consistency provides confidence that fundamental strength will persist through pattern formation and breakout periods.

Assess institutional ownership trends using available quarterly disclosure data. Increasing institutional ownership percentages over recent quarters indicate professional capital recognition of the company. Minervini notes the importance of institutional sponsorship: "Every time the stock pulls back just a little bit, it's met with buying because the institutions are looking at a much bigger picture and that stock has a very bright future." Rising institutional ownership confirms this dynamic.

Check relative strength rankings using available stock screener tools or manual calculation. Stocks ranking in the top 20% of the ASX by relative strength over 50 and 200-day periods demonstrate price momentum supporting VCP pattern significance. Relative strength provides quantitative confirmation of leadership status.

Verify adequate liquidity for position entry and exit. Calculate average daily trading volume in dollar terms over recent 20 trading days. Stocks demonstrating minimum $500,000-$1,000,000 average daily value traded ensure that position entry and exit will not significantly impact price. Lower liquidity stocks, while occasionally forming valid VCP patterns, present execution challenges for larger position sizes.

Filter out stocks with recent earnings disappointments or guidance reductions regardless of technical pattern appearance. Fundamental deterioration undermines technical setups, as VCP breakouts require underlying demand from institutional buyers who respond to fundamental quality. Stocks with recent negative fundamental surprises typically lack the institutional buying necessary for explosive breakouts.

This fundamental screening stage reduces the universe from 200-400 stocks (within leading sectors) to approximately 40-80 stocks meeting quality criteria. These fundamentally qualified candidates within leading sectors warrant detailed technical chart review for VCP pattern characteristics.

Step 3: Technical Chart Review for VCP Characteristics (30-45 minutes)

Detailed chart review of fundamentally qualified stocks within leading sectors identifies VCP pattern formations and base structures warranting monitoring or immediate action. Minervini's description of the VCP pattern provides the evaluation framework: "The VCP has contractions where it goes through usually the first correction might be 20%, 25%, 33%, and then it'll contract usually the contractions are about half of the previous correction. So maybe it contracts to 10 or 15 and then contracts to 3, 4 or 5 or 8%."

Review weekly charts first to establish overall base structure and identify multi-month patterns. Weekly charts reveal the larger context—whether the stock is emerging from extended consolidation, forming a new base after advance, or breaking out of multi-year resistance. Minervini emphasizes: "I find it's best to look at it later to let some time go by, months go by." Weekly perspective provides this temporal distance.

Identify prior uptrend establishment as VCP prerequisite. Valid VCP patterns form after stocks have established uptrends—typically defined as trading above rising 50-day and 200-day moving averages with positive price momentum over preceding months. Patterns forming at multi-year lows or during established downtrends do not constitute VCPs regardless of contraction appearance.

Count the number of contractions within the base pattern. Classic VCP patterns demonstrate 3-4 distinct contractions, each pullback smaller in percentage terms and time duration than the previous contraction. The progressive volatility reduction indicates supply exhaustion—sellers becoming less aggressive with each pullback as weak holders exit the position.

Measure contraction depth percentages from recent highs to pullback lows for each contraction. Ideal VCP patterns show first contraction of 15-35%, second contraction of 8-20%, third contraction of 4-12%, creating the telescoping volatility structure. Patterns where later contractions equal or exceed earlier contractions fail to demonstrate proper supply exhaustion characteristics.

Assess contraction time duration for each pullback. Progressive contractions should demonstrate decreasing time—first contraction spanning 4-8 weeks, second contraction 2-5 weeks, third contraction 1-3 weeks. This time compression combines with depth reduction to create the "coiling" effect Minervini describes where "you quiet the stock down and it gets very tight on that right side."

Examine volume patterns during contractions and rallies. Volume should diminish during pullbacks as selling pressure decreases, then expand during subsequent rallies as buying interest returns. The final contraction before breakout typically demonstrates the lowest volume of the entire base formation, indicating complete supply exhaustion. Minervini explains: "When you quiet the stock down and it gets very tight on that right side after contracting and the volume comes in, that's telling you that stock supply has stopped coming to market. That's why they're so explosive when they come out of these formations."

Identify pivot points where the stock might emerge from the base pattern. Pivot points typically represent resistance levels from prior highs within the base, or round number psychological levels. Valid pivots demonstrate clear price action—previous attempts to break through were rejected, creating visible resistance that the eventual breakout must overcome.

Review daily charts for fine detail on current contraction stage and potential breakout timing. Daily charts reveal micro-structure—whether the stock is currently pulling back, consolidating, or attempting to break out. The daily perspective informs whether immediate action warrants consideration or whether the pattern requires further development.

This technical review stage examines 40-80 fundamentally qualified stocks, typically identifying 10-15 stocks demonstrating some stage of VCP pattern formation—early formation, mid-formation, late-stage tightening, or immediate breakout setup. The systematic review ensures no qualifying patterns within leading sectors escape identification.

Remember that past performance is no guarantee of future results, and all trading involves risk. The VCP pattern characteristics described represent historical observations rather than predictions of future price movement.

Step 4: Pattern Verification and Classification (15-20 minutes)

After initial chart review identifies potential VCP patterns, systematic verification confirms pattern validity and classifies patterns by development stage. This classification enables appropriate monitoring and action planning.

Verify moving average alignment supports the pattern. Valid VCP patterns form above rising 50-day and 200-day moving averages, with the 50-day above the 200-day (golden cross configuration). Patterns forming below moving averages or where moving averages are declining typically lack the trend structure supporting explosive breakouts. Stage analysis framework classifies these as Stage 1 (basing) or Stage 4 (declining) rather than Stage 2 (advancing).

Confirm the pattern against template examples from Minervini's published work and educational materials. Comparing identified patterns to validated VCP examples ensures pattern recognition accuracy before committing capital or monitoring resources. Common misidentifications include confusing simple consolidations with VCPs, or identifying cup-and-handle patterns as VCPs despite different characteristics.

Measure the base duration from initial consolidation start to current position. Classic VCP bases form over 8-20+ weeks, with extended bases of 30-40 weeks occasionally preceding major advances. Very short bases (4-6 weeks) may represent temporary pauses rather than genuine VCP formations, while extremely extended bases (60+ weeks) may indicate demand exhaustion rather than supply exhaustion.

Calculate the depth from base start to deepest pullback within the formation. Proper VCP bases typically demonstrate first contraction depths of 15-35% from initial high to lowest point. Bases with extremely shallow contractions (first pullback only 5-8%) suggest strong hands throughout, which can be positive but may not represent classic VCP structure. Bases with very deep contractions (first pullback 40-50%+) may represent more significant corrections than typical VCPs.

Classify patterns by development stage to enable appropriate action planning:

Early Formation (Weeks 1-6): First or second contraction underway, pattern structure emerging but incomplete. Action: Add to watchlist for monitoring, no immediate entry consideration.

Mid Formation (Weeks 6-12): Second or third contraction developing, pattern structure clear but not yet tight. Action: Regular monitoring, preparation for potential entry as final contraction completes.

Late Formation (Weeks 12-20+): Final contraction tight, volume drying up, pattern approaching completion. Action: Close monitoring for breakout signals, entry planning.

Immediate Setup (Current Week): Pattern complete and tight, stock approaching or testing pivot point. Action: Entry readiness, position sizing determination, order placement planning.

Post-Breakout (Within 5% of pivot): Stock has broken through pivot point within recent days. Action: Evaluate breakout quality, consider entry within 5% of pivot if volume and price action confirm validity.

This classification enables efficient monitoring by segregating patterns requiring different attention levels. Early and mid-formation patterns require weekly check-ins, while late formation and immediate setups warrant daily monitoring for breakout signals.

Step 5: Watchlist Organization and Monitoring Protocol (10-15 minutes)

Systematic watchlist organisation ensures that identified VCP patterns receive appropriate monitoring without overwhelming analytical capacity. Research demonstrates that maintaining focus on limited high-quality opportunities outperforms attempting to monitor excessive candidates.

Create tiered watchlists by pattern development stage:

Tier 1 - Immediate Setups: 2-4 stocks in late formation or post-breakout within 5% of pivot. These warrant daily monitoring and immediate action readiness.

Tier 2 - Developing Patterns: 5-8 stocks in mid-to-late formation requiring regular monitoring. Weekly review with daily monitoring as patterns tighten.

Tier 3 - Early Formation: 10-15 stocks in early formation stages. Weekly monitoring to track development, no immediate action anticipated.

Tier 4 - Sector/Theme Monitoring: 20-30 stocks within leading sectors not yet showing VCP characteristics but warranting observation. Bi-weekly review to catch pattern emergence.

This tiered structure prevents overload—focusing intensive daily monitoring on the 2-4 highest-probability immediate setups while maintaining awareness of developing opportunities without excessive chart review time commitment.

Document key pattern metrics for each watchlist stock:

  • Base start date and current duration

  • Number of contractions completed

  • Depth percentage of each contraction

  • Current contraction stage and approximate completion percentage

  • Identified pivot point price level

  • Volume trend (increasing/decreasing)

  • Sector and theme classification

  • Fundamental catalyst or strength factor

This documentation enables efficient weekly updates without re-analyzing complete pattern structure each review. Note changes in metrics rather than performing full re-analysis.

Establish specific monitoring triggers that warrant immediate deeper review:

  • Stock enters final contraction stage (Tier 3 → Tier 2 promotion)

  • Stock tightens significantly (Tier 2 → Tier 1 promotion)

  • Stock breaks pivot point on volume (Immediate action assessment)

  • Stock violates key support level (Potential watchlist removal)

  • Fundamental deterioration (Earnings miss, guidance reduction, executive departure)

  • Sector loses leadership status (Re-evaluate all patterns within sector)

These triggers create systematic review discipline without requiring daily deep analysis of entire watchlist.

Schedule weekly watchlist maintenance to update pattern status, promote/demote between tiers, remove failed patterns, add newly identified formations. Minervini's emphasis on consistent work applies to watchlist discipline: "Everything that I do... Looking at the charts, there's a couple general rules of thumb. I find it's best to look at it later to let some time go by, months go by." Weekly maintenance provides this regular review rhythm.

Step 6: Integration with Friday Market Analysis (15-20 minutes)

The weekly scanning process gains significant efficiency through integration with broader market analysis examining overall market conditions, sector rotation, and thematic developments. This integration ensures VCP pattern identification occurs within proper market context.

Assess overall market conditions using major indices (ASX 200, All Ordinaries) and market breadth indicators. Calculate the percentage of ASX 200 stocks trading above their 50-day and 200-day moving averages. Minervini notes: "When you get below the 50% mark, particularly in the thirties with percentage of stocks above 200-day, that's where if you get down in the thirties where you're hitting new highs or diverging for a period of time, you usually have to have a correction." Market conditions inform position sizing aggressiveness and entry timing decisions for identified VCP setups.

Review sector rotation dynamics beyond just identifying leading sectors. Track which sectors are strengthening (moving from lower to higher relative strength rankings), which are weakening (declining in rankings), and which demonstrate stable leadership. Research by Alexiou and Tyagi (2020) in the Journal of Asset Management examining sector rotation strategies found that sector momentum persists over months, making rotation tracking valuable for anticipating which sectors may produce future VCP opportunities.

Monitor emerging Launch Pad themes using the systematic methodology of observing unusual relative strength clustering across stocks sharing business characteristics. Early theme identification, as discussed in dedicated thematic analysis, provides advance notice of where VCP patterns may soon emerge before broad market recognition drives significant price movement.

Contextualize individual VCP patterns within identified sector and thematic trends. Patterns forming within strengthening sectors or emerging themes demonstrate higher probability characteristics than technically similar patterns within weakening sectors. This context adjusts pattern prioritization within watchlists—a moderate-quality VCP in a leading sector may warrant higher priority than a technically superior VCP in a lagging sector.

The Finer Market Points YouTube channel conducts comprehensive Friday analysis sessions demonstrating this integrated approach. The Friday scans combine overall market assessment, sector leadership identification, Launch Pad theme surfacing, and individual VCP pattern screening into systematic weekly workflow. These sessions illustrate how the step-by-step scanning process operates in practice, showing real-time application of the methodology to current ASX market conditions.

Access to these Friday ASX VCP scans providing weekly practical demonstrations is available through the Finer Market Points YouTube channel at https://www.youtube.com/@finermarketpoints. Each week's analysis demonstrates the complete scanning workflow from sector assessment through individual pattern identification within the context of current market conditions.

Common Scanning Mistakes and Efficiency Drains

Experience reveals predictable errors in VCP scanning methodology that reduce effectiveness and consume excessive time without proportional benefit.

Random stock screening without sector context represents the most significant efficiency error. Reviewing 2,000 ASX stocks individually for VCP patterns consumes hours while missing the sector-level momentum that determines pattern success probability. Research demonstrating that 60-73% of momentum returns derive from sector factors establishes that sector-first screening improves both efficiency (fewer stocks to review) and effectiveness (concentrating on high-probability setups).

Insufficient pattern verification before watchlist addition clutters watchlists with false VCPs. Initial chart review may identify apparent volatility contraction, but deeper verification reveals the pattern lacks essential characteristics—forming below moving averages, demonstrating inconsistent contraction sizing, or lacking prior uptrend establishment. Rigorous verification before watchlist inclusion prevents wasted monitoring effort on invalid patterns.

Excessive watchlist capacity dilutes focus across too many candidates. Attempting to monitor 40-50 VCP patterns simultaneously prevents adequate attention to the highest-quality 5-10 setups. Research on decision quality demonstrates that excessive options reduce decision effectiveness. Maintaining tiered watchlists with strict caps (maximum 4 Tier 1 stocks, maximum 8 Tier 2 stocks) ensures proper focus.

Neglecting pattern invalidation criteria results in holding failed patterns on watchlists indefinitely. Patterns demonstrating increasing volatility rather than contraction, violating key support levels, or persisting in formation for 40-50+ weeks without progression warrant removal regardless of initial promise. Systematic weekly review with clear removal criteria prevents watchlist bloat.

Ignoring fundamental deterioration in technically valid patterns leads to holding patterns through negative developments. Quarterly earnings misses, revenue growth deceleration, guidance reductions, or executive departures fundamentally undermine VCP validity regardless of technical appearance. Monitoring fundamental developments for watchlist stocks prevents blindly following technical patterns after fundamental support disappears.

Inconsistent scanning schedule undermines pattern identification timing. Sporadic scanning—reviewing stocks every 2-3 weeks rather than weekly—misses pattern progression and entry signals. VCP patterns evolving from mid-formation to immediate setup over 2-3 weeks may breakout before the next sporadic review session. Minervini's emphasis on consistent work applies: regular weekly scanning ensures continuous opportunity identification.

Over-complicating the process with excessive indicators, multiple screening tools, or complex scoring systems reduces execution speed without improving results. The systematic six-step process outlined—sector assessment, fundamental screening, technical review, pattern verification, watchlist organization, market integration—provides comprehensive coverage without requiring sophisticated software or excessive technical indicators. Complexity beyond this framework typically represents procrastination rather than analytical enhancement.

Tools and Resources for Efficient ASX VCP Scanning

While sophisticated tools can assist systematic scanning, the fundamental process requires only basic charting capabilities and sector performance data. Many traders successfully implement weekly VCP scanning using free or low-cost resources.

Charting platforms providing technical chart access with moving averages, volume, and annotation capabilities enable pattern identification. ASX data available through various charting providers includes both real-time and end-of-day data. End-of-day data suffices for weekly scanning purposes, as VCP patterns form over weeks and months rather than intraday timeframes.

Sector performance tracking through financial websites providing ASX sector indices enables the sector momentum assessment starting the scanning process. Calculating relative strength rankings manually using sector index data from financial news sites or market data providers requires minimal time when performed systematically.

Stock screening tools offering filters for fundamental criteria (earnings growth, revenue growth, market capitalization, liquidity) streamline the fundamental quality assessment step. Many screening tools provide free basic functionality sufficient for identifying stocks meeting fundamental thresholds within identified leading sectors.

Spreadsheet applications for watchlist management and pattern tracking enable systematic organization across tiered watchlists. Recording key pattern metrics in spreadsheet format facilitates efficient weekly updates and historical tracking of pattern development progression.

The systematic process matters more than sophisticated tools. Traders implementing the six-step methodology consistently with basic resources typically outperform traders with expensive tools but inconsistent application. Minervini's success derived from intensive systematic work rather than proprietary technology, as he explains: "90% of my work is all stock work."

Testing VCP Pattern Recognition Skills

Systematic weekly scanning requires accurate VCP pattern recognition to avoid false positives cluttering watchlists and wasting monitoring effort. Developing reliable pattern identification skill precedes effective implementation of the scanning methodology.

The Free Master Momentum Trading Quiz at https://fmp-trading-tools.thinkific.com/products/courses/master-momentum-trading-mark-minervini-vcp tests pattern recognition skills across multiple VCP examples, providing immediate feedback on recognition accuracy, reinforcement of key VCP characteristics and volume behaviour, and coverage of both entry and exit signals.

The quiz helps identify gaps in pattern recognition understanding before implementing weekly scanning routines. Common recognition errors—confusing simple consolidations with VCPs, misidentifying cup-and-handle patterns, or failing to verify prior uptrend establishment—surface through quiz feedback, enabling skill refinement before live market application.

Combining quiz-based pattern recognition practice with observation of real-world examples through the Friday ASX scans on the Finer Market Points YouTube channel develops integrated pattern identification skill. The Friday scans demonstrate how identified patterns compare to template VCP examples and show which formations warrant watchlist inclusion versus which fail verification criteria.

Implementation Timeline and Conclusion

Systematic weekly ASX VCP scanning following the six-step methodology requires approximately 90-120 minutes weekly once the process becomes routine:

Step 1 - Sector Assessment: 15-20 minutes identifying leading sectors through relative strength rankings, breadth metrics, and thematic observations.

Step 2 - Fundamental Screening: 20-30 minutes filtering fundamentally qualified stocks within leading sectors using earnings growth, revenue consistency, institutional ownership, relative strength, and liquidity criteria.

Step 3 - Technical Chart Review: 30-45 minutes examining charts of qualified stocks for VCP pattern characteristics including contraction count, depth progression, time compression, and volume patterns.

Step 4 - Pattern Verification: 15-20 minutes confirming pattern validity, comparing to templates, and classifying by development stage.

Step 5 - Watchlist Organization: 10-15 minutes updating tiered watchlists, documenting pattern metrics, and establishing monitoring triggers.

Step 6 - Market Integration: 15-20 minutes assessing overall market conditions, sector rotation, emerging themes, and contextualizing individual patterns.

This time investment, performed consistently each week, ensures comprehensive coverage of the tradeable ASX universe for VCP pattern opportunities. The systematic approach prevents missing high-quality setups while avoiding wasted effort on low-probability patterns outside leading sectors.

Research demonstrates that systematic momentum approaches outperform discretionary methods. O'Neal's (2000) findings showing sector fund momentum strategies using mechanical selection rules achieved superior returns to fundamental prediction supports systematic weekly scanning over sporadic opportunistic searches.

The Finer Market Points YouTube channel's Friday ASX VCP scans demonstrate this complete systematic process in weekly practice, providing real-world examples of how the methodology operates across current market conditions. The integration of sector analysis, thematic identification, and technical pattern screening illustrated in Friday sessions shows the six-step process applied comprehensively to the ASX market.

Consistent implementation of this systematic weekly scanning methodology, combined with rigorous pattern verification and proper watchlist management, creates the foundation for identifying high-probability VCP setups within leading sectors and emerging themes on the ASX market. Explore the Complete VCP Framework: This article is part of the Complete VCP Trading Guide for ASX Markets, covering all aspects of Mark Minervini's methodology. Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results. Consider your financial situation and seek professional advice before making investment decisions.

Finer Market Points Pty Ltd, CAR 1304002, AFSL 526688, ABN 87 645 284 680. This general information is educational only and not financial advice, recommendation, forecast or solicitation. Consider your objectives, financial situation and needs before acting. Seek appropriate professional advice. We accept no liability for any loss or damages arising from use.

 
 
 

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