SovaScan
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FAQ

Frequently asked questions

Plain-English answers about momentum stock scanning, the breakout strategies SovaScan screens for, and how the scanner works. New to momentum trading? Start with the strategy guide.

What is SovaScan?

SovaScan is a daily momentum stock scanner for the US market. Every trading day it sweeps roughly 1,500 liquid NASDAQ, NYSE, S&P 500, and small-cap stocks across 24 breakout playbooks drawn from the methods of leading momentum and trend traders, including Mark Minervini's VCP, William O'Neil's cup-and-handle, Stan Weinstein's stage analysis, the Darvas Box, and Qullamaggie breakouts, then scores and ranks the names that are setting up to move on a 1 to 100 momentum score.

Which trading strategies does SovaScan scan for?

SovaScan is not tied to a single trader or method. It runs 24 breakout playbooks in parallel, drawn from the work of many well-known momentum and trend traders, so you can screen for the setups that fit your own style. These include Mark Minervini's volatility contraction pattern (VCP), William O'Neil's cup-and-handle and CANSLIM-style market leaders, Stan Weinstein's Stage 2 analysis, the Darvas Box, flat bases, high tight flags, power earnings gaps, and the Qullamaggie breakout and episodic pivot. Each name on the dashboard shows which playbooks it currently matches. Our plain-English strategy guide walks through each one in detail.

What is a Stage 2 stock?

A Stage 2 stock is one in a confirmed uptrend, a concept from Stan Weinstein's stage analysis. SovaScan defines Stage 2 as price trading above a rising 50-day moving average, which itself sits above the 200-day moving average. Stage 2 is the only stage in which momentum breakout traders look to buy, because it signals institutional accumulation.

What is ADR and what is a good ADR value for a stock?

ADR (Average Daily Range) measures how much a stock typically moves in a day, calculated as the 20-day average of (high minus low) divided by low, expressed as a percent. Momentum traders generally want an ADR above 3 to 5 percent, because a stock needs enough daily range to produce a worthwhile move after a breakout. A very low ADR signals a slow, range-bound name.

What is RS (relative strength) rating?

Relative strength measures how a stock is performing against the broad market rather than against its own past. SovaScan computes an RS score from 1 to 100 by blending a stock's short, intermediate, and longer-term performance against the S&P 500, so a name has to lead across multiple time horizons rather than on a single hot stretch. A high RS rating (typically 80 or above) means the stock is a market leader, which is exactly where momentum breakouts tend to come from.

What is a momentum breakout?

A momentum breakout is when a stock closes decisively above a level of resistance, such as the top of a multi-week base or a prior high, usually on a surge in volume. It signals that demand has overwhelmed supply and a new leg of the trend may be starting. Breakout traders buy at or just after the breakout and place a stop just below the base.

What is a VCP (volatility contraction pattern)?

A VCP, or volatility contraction pattern, is a base pattern popularized by Mark Minervini in which a stock makes a series of progressively smaller pullbacks while volume dries up. Each contraction shakes out weak holders, and the tightening price action signals that supply is being absorbed. A breakout from the final, tightest contraction is the buy signal.

What is a cup-and-handle pattern?

A cup-and-handle is a classic base pattern popularized by William O'Neil. The stock forms a rounded 'cup' as it corrects and recovers, then a shorter, shallower 'handle' as it drifts back near the prior high on lighter volume. The buy signal is a breakout above the handle on rising volume, which suggests the stock is ready to resume its uptrend.

How does SovaScan score stocks?

Each stock gets a momentum score from 1 to 100 built from the signals that tend to precede real moves: relative strength versus the S&P 500, the quality of the uptrend, ADR, volume expansion and demand character, the chart pattern and how tight the base is, proximity to the 52-week high, whether a breakout is firing, the strength of the stock's industry group, and float. A stock that has run too far above its moving averages is marked down for being overextended. Higher scores mean a cleaner, higher-probability setup. We do not publish the exact weighting, but the per-factor breakdown on each stock detail page shows you which signals are driving the score. You can also filter every metric with sliders.

What stocks and markets does SovaScan scan?

SovaScan scans roughly 1,500 unique liquid US tickers. The universe is rebuilt before every scan from the full NASDAQ and NYSE exchange listings, filtered to liquid, tradeable names by price, market cap, and dollar volume, so new IPOs and newly active stocks join automatically. The scan runs once per trading day on previous-day candle data, so you start each session with a fresh, ranked list of setups rather than scanning charts by hand.

Is SovaScan free?

SovaScan offers a 7-day free trial with no credit card required, so you can run real scans before paying. After the trial, paid plans unlock the full scanner, stock detail pages, watchlists, alerts, a trading journal, and AI setup briefs. See the pricing page for current plans.

What is an episodic pivot?

An episodic pivot is a momentum setup where a stock gaps up sharply on a major catalyst, such as an earnings surprise or unexpected news, after a period of being ignored. The gap marks a sudden change in perception that can launch a sustained trend. Traders enter after the gap and manage risk against the low of the gap day or an intraday consolidation.

Who are the traders behind these strategies?

SovaScan screens for setups documented by many of the best-known momentum and trend traders. Mark Minervini is behind the VCP and SEPA approach, William O'Neil developed CANSLIM and the cup-and-handle, Stan Weinstein wrote the stage analysis framework, Nicolas Darvas created the Darvas Box, and Kristian Kullamagi (Qullamaggie) popularized a modern breakout and episodic pivot method. The scanner is built to recognize their patterns automatically, so you can follow whichever framework fits your style rather than being locked into one.

Is SovaScan financial advice?

No. SovaScan is a research and educational tool. Its scores, rankings, and AI briefs are generated by automated algorithms on public market data and are for informational purposes only. Nothing in the product is investment advice, and all trading carries risk, so always do your own research and consider a licensed professional.

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