📂 MONDAY – Volatility Compression Screener: “Pre-Breakout Bases”

After earnings season volatility fades, strong stocks often enter tight consolidation phases before their next directional move. The key is distinguishing healthy compression from distribution.

Today’s Intel Drop screens for stocks forming low-volatility bases with strong relative strength, signaling potential breakout setups.

Use this to build a pre-breakout watchlist before momentum traders pile in.

💡PROMPT TEXT:

(copy & paste the below into your preferred AI model: ChatGPT, Claude, Gemini, Perplexity, Grok, Meta, etc.)

You are screening for “Pre-Breakout Volatility Compression” setups as of February 16, 2026.

Goal:
Identify 12–20 U.S. stocks forming tight, low-volatility bases after earnings season.

Filters:

1) Volatility Compression
- ATR declining for at least 10 trading days
- Narrow trading range vs 3-month average
- No large gap-driven instability

2) Relative Strength
- Outperforming S&P 500 over last 30 days
- Holding above 50-day moving average
- No lower-high pattern forming

3) Fundamental Stability
- No earnings miss in last quarter
- Stable or improving margin trend
- No near-term binary event

4) Valuation Discipline
- Forward valuation not in top decile of 5-year range
- Avoid purely speculative names

5) Liquidity & Size
- Market cap > $7B
- Average daily dollar volume > $35M

Output:

1) WATCHLIST TABLE:
- Ticker
- Company
- Sector
- Volatility Compression Note
- Relative Strength Behavior
- Base Structure Quality
- Why it qualifies as a pre-breakout candidate

2) Summary (3–5 sentences):
- Why volatility compression precedes breakouts
- What confirms a valid breakout
- How to manage false signals

Output in a clean table + 3–5 sentence explanation why this matters right now.

END PROMPT

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