Start where the strength already is.

The publicly described idea

In the breakout section of his three-setups article, Kullamägi describes finding current leaders by scanning for the 1 or 2% of stocks that are up the most over three timeframes: one month, three months and six months. The logic is that big winning stocks tend to move in stair steps, with a strong advance, then a sideways consolidation, then another leg. A scan of recent top performers surfaces the stocks most likely to be in that pattern.

Rebuilding the scan on a free screener

Most screeners can sort by percentage performance. The exact settings below are a starting point for study, not a reproduction of anyone's private scan.

Run each sort separately, keep the top 1 to 2% of the universe from each, and merge the lists. In a universe of about 6,000 US stocks, that is roughly 60 to 120 names per timeframe before overlap.

Adding liquidity and range filters

Raw performance lists are full of thin, illiquid names. Two common filters keep the list practical:

• Dollar volume. Average shares traded times price. It shows whether a position can be entered and exited without moving the stock.
• Average Daily Range. The public FAQ gives the ADR definition used there: the average daily high-to-low range, in percent, over the past 20 sessions. A minimum ADR removes stocks that move too little to reward a breakout.

Choose thresholds from your own account size and testing, write them down, and keep them fixed long enough to judge them.

From scan results to a study watchlist

1. Run the three scans on a fixed day each week.
2. Open every chart; sort into "consolidating", "extended" and "broken".
3. For consolidating names, note the prior move, range tightness and which moving average price is following.
4. Group names by sector to spot themes with several leaders.
5. Carry the best candidates into the daily watchlist with alert levels.

Save the weekly list itself. Comparing old lists with what happened next is one of the fastest ways to build the chart database described in the FAQ.

Biases to avoid

• Survivorship: historical screens can omit delisted stocks that failed.
• Hindsight: winners look obvious once the chart is complete.
• Regime: in weak markets, leader lists shrink and follow-through fades.
• Concentration: several names from one theme are a single bet.

The weekly scan routine

1. Run the 1-, 3- and 6-month performance sorts.
2. Apply the dollar-volume and ADR filters you have defined.
3. Merge, de-duplicate and review every chart.
4. Tag the setup stage and the sector.
5. Archive the list with the date for later review.