Setup tags explained: what BASE, TIGHT, TRENDING, EXTENDED and PARABOLIC mean

Every row on every screen here carries one of five setup tags: BASE, TIGHT, TRENDING, EXTENDED or PARABOLIC. The tag is arithmetic on three numbers — how tightly a stock's 10, 20 and 50-day exponential moving averages are bunched, how far price is sitting from that bundle, and how far above its 50-day simple moving average price has run. It exists to separate a stock that is strong from one that is strong and has stopped to consolidate. This page is what each tag is measured at, what the tag does not say, and how to use it after the close.

Why a strength ranking needs a second number

A screen ranked by relative strength answers one question: which names have outrun the rest of the market. It does not answer the next one. Two stocks can sit at the same percentile and be in completely different places on the chart — one has gone vertical and is a long way above every average it has, the other advanced, stopped, and has spent three weeks going sideways while its averages catch up underneath it.

That second question is what the tag is for, and it is deliberately a different measurement rather than a second opinion about strength. The measurements every screen here is built from are covered in how to screen for momentum stocks; this page is only the tag.

The consolidation score

BASE and TIGHT are tiers of one number, the consolidation score, which runs from 0 to 100 and shows on the row as Cons; the two tags below them are reached only by failing it. The score is the average of two halves, each on its own linear ramp, and both are measured in units of the stock's own 20-day average daily range — the ADR, the mean of each session's high divided by its low over the last 20 sessions, minus one, as a percent.

Half of the scoreFull marks atZero at
Width of the EMA 10/20/50 bundle0.4 ADR or less3.0 ADR or more
Distance from price to that bundle0.1 ADR or less2.0 ADR or more

Both halves are needed, because either one alone describes a different chart. A stock that has just gapped can have very tight averages with price nowhere near them; a stock drifting back through a wide bundle is near the band with nothing tight about it. A real contraction is both at once. Distance is reported as zero when the close is inside the band, which is the setup rather than a missing value, and the row shows it as IN.

Dividing by the stock's own range is what makes the score portable across volatility, and it is also what has to be bounded: past 12% the ADR yardstick stops growing, so extra volatility stops buying extra slack. The row's Cons cell shows both inputs in raw percent and in ADR units, using that same capped ADR.

The five tags, in the order they are tested

The tags are branches, tested top to bottom, first match winning. That order is part of the definition: a row that would satisfy two of them gets the one listed higher.

Two details decide more rows than they look like they should. Neither BASE nor TIGHT looks at the recent range: absolute quiet is something a high-range leader is never in, and asking for it would exclude exactly the population the score is meant to rank. And EXTENDED is only reached by a row that failed the TIGHT tier, so "extended" here means extended and not consolidating — a stock a long way above its 50-day average that has gone quiet is tagged for the quiet, not for the distance.

In the table the tag is abbreviated to fit its column: BASE, TIGHT, TREND, EXT and PARA, each with a one-line description in its tooltip.

What the tag does not say

The tag is three numbers about the last few weeks of one chart. It carries no entry, no stop, no size and no target, and it has no opinion about the direction of the next move — BASE is not a prediction that a base resolves upward, and EXTENDED is not a short signal. It knows nothing about earnings dates, offerings, or why a stock gapped, and it is computed on end-of-day bars only. It is not a ranking either: every tag sits on a row that has already passed its screen's rules, so it describes where that name is rather than how well it passed.

Where the tag shows up

The tag is written into the result file by the run, and every surface reads that value: the table column, the compact list a phone gets, the setup filter, the share text, the PNG card and the CSV. Only a result file written before the tag existed is scored in the browser instead, and that badge carries an asterisk and says so. In the daily email it is a chip beside the name, and the lead charts there are drawn with the EMA 10/20/50 band the tags are measured against.

The setup filter is a preset list rather than a free-form control: everything; buy-ready, which is BASE and TIGHT together; each of BASE, TIGHT, TRENDING and EXTENDED on its own; hide PARABOLIC and EXTENDED, which keeps everything else; and PARABOLIC only. The free rows carry the tag and the consolidation score too, so the distinction is visible before anything is paid for.

Common mistakes

Chasing the EXTENDED and PARABOLIC names. A list sorted by relative strength puts the names that moved furthest fastest at the top, which is a statement about what has already happened rather than about what comes next. The tag is the screen saying so on the row: at 50% above the 50-day average with the range still running at 3 ADRs in ten days, the move being ranked is the one that already happened.

Reading the tag as a signal. BASE is the strictest of the consolidation tiers and it still only says that the averages are tight and price is on them. The work after that — the level you would buy through, the level that says you were wrong, the size — is not in the tag and is not on this site.

Filtering to BASE and finding nothing. The tiers are absolute thresholds on a score rather than a quota, so a list can return none of them — which is information rather than a broken filter. Widening to the buy-ready preset, or to hide-PARABOLIC-and-EXTENDED, is the next step.

How to use this in QM Screener

A free account — a verified email address, no card — sees the top 5 names of each screen every day and can chart them. The full list, the per-row values and the exports are $10 a month or $84 a year, each starting with a 7-day free trial. Start there, or sign in if you already have an account.

Frequently asked questions

What is the difference between BASE and TIGHT?

The extension limit. Both are tiers of the same consolidation score — 75 or better for BASE, 55 or better for TIGHT — but BASE also requires that price be no more than 40 percent above the 50-day simple moving average. A stock with tight averages that has already run further than that is tagged TIGHT rather than BASE. The tags are tested in order and the first match wins, so every BASE row would also have satisfied TIGHT.

Does a BASE tag mean the stock is a buy?

No. The tag is a description of the chart, computed from three numbers: how tightly the 10, 20 and 50-day exponential moving averages are bunched, how far price sits from that bundle, and how far above the 50-day simple average price has run. It contains no entry price, no stop, no target and no view on the direction of the next move. Nothing here is financial advice.

Why are the measurements in ADR rather than in percent?

Because tightness is relative to how much the stock normally moves. A two percent weekly range is dead quiet for a high-volatility leader and perfectly ordinary for a utility, so both halves of the score are divided by the stock's own 20-day average daily range. The ADR used as the yardstick is capped at 12 percent, which stops a stock that swings wildly every day from scoring as tight simply because its own range makes everything look small.

Which tag should I filter to?

The dashboard's setup filter has a buy-ready preset that keeps BASE and TIGHT together, which is the usual answer, and a preset that hides PARABOLIC and EXTENDED instead of narrowing to two tags. Both are cuts on a list that has already passed its screen's own rules.

Why does a row sometimes show a dash instead of a tag?

Because that result file predates the current definition of the score. The tag is computed by the run that writes the file, and a run cut on the old scale would be labelling rows with a word that no longer means the same thing, so the tag is withheld rather than re-derived from weaker data. The next daily refresh recomputes it.


Educational content, not financial advice. QM Screener lists stocks that passed published filters; it does not recommend trades, size positions or know anything about your circumstances. US equities, end-of-day, refreshed once per trading day after the close.