📈The All Important Volatility Contraction Pattern (VCP) - Important Elements not to be Missed 📈 Volatility Contraction Pattern (VCP) is one of the most powerful chart patterns in Technical Analysis. It was introduced and made famous by Market Guru @MarkMinervini This pattern is a MUST KNOW if you want to be an Expert in Technical Analysis. The most important traits of a valid VCP pattern are the following: 1. Tightening from left to right within the base 2. Signs of Accumulation 3. Dry Volumes on the Right 4. Tight final contraction Let's dive deeper with a real world example ↓

Tightening Within The Base: Proper VCP patterns show volatility reducing as time goes on. This means that the stock makes higher lows, with highs staying almost equal throughout the base. Example: #SOLARIND

Signs of Accumulation: To have a proper VCP pattern, especially on relatively bigger bases, we have to be looking for accumulation signatures throughout the base. We have already talked about it several times, so I'm sure you all know about it, right? Still I'll repeat What do

Dry Volumes on the Right: It's crucial to identify accumulation volume, but we also need to observe an absence of distribution. A clear indication of lack of supply is? When the price drops or consolidates on declining volume. Enjoying so far?

Tight final contraction: Last but not the least, we want to see a tight final contraction before breaking out higher. And volumes must be really dried up. This will allows us to manage risk. We have a Laser sharp Point to Enter(Above the Pivot) and a clear low to set our

Which Time frame to trade this on? No matter if you’re focused on a weekly, monthly, daily, or intraday chart, you’ll now be able to quickly spot the VCP pattern on all of them. But like all other patterns, this works best on Daily and Weekly. I personally use it on daily

To revise what we learned today, here are the key points once again: 1. Tightening within the base 2. Signs of Accumulation (Mainly Pocket Pivots and High Volume Rallies) 3. Dry Volumes on the Right 4. Tight final contraction (with Dry volumes)

That's it from my side today 1. If you genuinely loved this Deep analysis on VCP, and want me to continue writing such posts, Follow me @maihoonSaurabh 2. Repost🔁 the post below to help me reach More Learners like you.

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