How the 3-gate filter works
This framework is built around Structure, Participation, and Ignition.
What this page is for
This page is not here to re-sell the scanner.
It is here to explain how the filter works, what each gate is checking, and why each gate matters.
A name stays eligible for review only when all 3 gates align.
If one breaks, the name no longer belongs on the screen.
No exceptions. No overrides.
Question: Is it already trading up?
Structure comes first because stronger moves usually do not begin with names trading aimlessly or below trend.
This gate is there to make sure the stock is already showing directional alignment instead of just flashing random activity.
What this gate checks
The stock must be above the 200 SMA on the:
- 5-minute
- 15-minute
- 60-minute
Why this matters
A stock can look strong on one short timeframe and still be weak everywhere else.
Multi-timeframe structure helps filter for names where the move is not just a brief pop, but part of a cleaner broader trend.
What this helps filter out
- Weak bounces
- One-candle spikes
- Names trading below trend
- Charts that look active short term but still have poor structure underneath
In plain English
If the stock is not already trading up, it should not be treated like a momentum setup.
Question: Is there real demand behind the move?
Stocks do not move without buyers.
This gate exists to separate real interest from weak, low-commitment movement.
A stock can move a little and still not have enough participation behind it to matter.
What this gate checks
- 30% float turnover
- 5-minute volume spike
Why this matters
Not every move has real commitment behind it.
Some names look active, but the move is shallow, thin, or weakly supported.
Participation helps confirm that actual trading activity is showing up, not just price flicker.
What this helps filter out
- Low-commitment moves
- Weak volume pops
- Shallow activity that looks better than it is
- Names moving without enough real participation behind them
In plain English
The chart should not just be moving. There should be real involvement behind the move.
Question: Is momentum actually there right now?
Even with structure and participation, momentum still has to be alive.
Some setups have the right trend and decent activity, but no real urgency.
This gate checks whether the move is active now, not just being assumed into existence.
What this gate checks
- 5-minute RSI ≥ 50
- 15-minute RSI ≥ 70
Why this matters
A stock can have decent structure and still stall.
A stock can have some activity and still drift.
Ignition helps confirm that momentum is showing up clearly, not just being assumed.
What this helps filter out
- Stalled moves
- Drifting setups
- Charts that look okay but have lost urgency
- Names that had energy earlier but are no longer truly active
In plain English
Momentum should not have to be guessed. It should already be visible.
Why all 3 gates matter together
Any one gate by itself can be misleading.
Structure alone is not enough. A stock can be above trend and still have weak demand.
Participation alone is not enough. A stock can be active and still have poor structure.
Ignition alone is not enough. A stock can spike briefly and still lack broader alignment.
That is why the filter uses all 3.
- Structure is there
- Participation is there
- Ignition is there
That is the framework.
How to use it
The scanner helps narrow the field.
The DD process helps check what can break the setup.
The workflow is simple:
- Let the scanner surface a name meeting the framework
- Check whether all 3 gates are aligned
- Move to Rapid DD to review what could break the setup
- Move into deeper review from there
Both matter.
Final note
This framework is not built to catch every stock that moves.
It is built to cut a huge pile of low-float noise down to a smaller list.
Not magic. Not certainty. Just a better filter.
Review the gates. Understand the framework. Check the risk.