Get started

VCP

SOLUSD Tight Risk Buy PointWorking up the right side of a quality base, digesting the 1,100% run from September 2023 thru March 2024. High volume flush in April that was quickly bought up, shakeout in early-May, reclaim of important VWAPs, volume declining as it works its way up the right side. Now with the current volatility contraction, it setups up a potential early buy point within the base over 175 on a thrust in volume. The most aggressive stop placement would be just under the 163.50 low from 5/30. I will personally give it room to fluctuate until a decisive break below my cost basis around 150-ish.
COINBASE:SOLUSDLong
by apaqu
2
ACES (VCP - 21W 25/4 4T)I have my positions March 19, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. A breakaway move, first breakout of a confirmed stage 2 uptrend 5. High relative strength 6. Volume dries up as less supply coming to the market Flaws: 1. The market is still in a hard-penny environment, not much confirmation from the momentum stocks with only 25% of total stocks above the 200-day moving average 2. The index is moving higher but there are still less stocks setting up in this market The stock breaks near the closing day and squats. I like to see if the stock can tighten up for one last contraction, resetting its pivot, before I consider adding more to my position.
IDX:ACESLong
by rifqonr
VCP in LODHA - 25% up move expected after breakoutMACROTECH DEVELOPERS (LODHA) - is nearing its 52 week high with a dry up in volume on a daily time frame with a consolidation from the past 100 days. The company has seen an influx of institutional investing in the last quarter. Good for swing traders to be kept on watchlist. Look for volume gain above the 30w moving average on weekly time frame. Can expect an upward momentum of a min of 25%. Entry - INR 1245 SL - 8% TSL - According to your risk profile. Disclaimer: Please be advised that the information provided is not intended as financial advice. It is imperative to conduct thorough research before making any investment or trading decisions.
NSE:LODHALong
by Rokdevildivine
BNGA (VCP - 26W 9/3 4T)I have my positions February 5, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. A very clear supply coming right across the red line where all the action happen as far as where it's been denied 5. High relative strength 6. Volume dries up as less supply coming to the market 7. A huge volume on the breakout 8. Strong fundamental standpoint. Flaws: 1. The market is still in a hard-penny environment, not much confirmation from the momentum stocks with only 25% of total stocks above the 200-day moving average 2. The index is moving higher but there are still less stocks setting up. I bought my big position last week and couldn't manage to add more today on the breakout. I like to see some follow through action from now.
IDX:BNGALong
by rifqonr
AMMN (VCP - 11W 30/4 3T)I bought my positions today February 12, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. An early IPO stock to has big upward momentum to considered a leader in this type of market 5. High relative strength 6. Volume dries up as less supply coming to the market 7. A decent volume on the breakout Flaws: 1. The market is still in a hard-penny environment, not much confirmation from the momentum stocks with only 25% of total stocks above the 200-day moving average 2. The index is moving higher but there are still less stocks setting up. I like to see some follow through action from now.
IDX:AMMNLong
by rifqonr
BMRI - CUP WITH HANDLEI bought my positions today January 4, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through four majority line of supplies 4. Offers multiple entries at a cheat area and a handle 5. The base has VCP characteristics 6. High relative strength 6. Volume dries up as less supply coming to the market 7. Huge volume on the breakout Flaws: 1. The market is still in a hard-penny environment with only 32% of total stocks above the 200-day MA 2. The index is moving higher but there are still less stocks setting up. A classic cup and handle formation with cheat pivot entry. I like to see some follow through action from now.
IDX:BMRILong
by rifqonr
BBNI (VCP - 12W 12/2 3T)I bought my positions today January 4, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. A breakaway move, the first breakout after the stock in a confirmed stage 2 uptrend 5. High relative strength 6. Volume dries up as less supply coming to the market 7. Huge volume on the breakout Flaws: 1. The market is still in a hard-penny environment with only 32% of total stocks above the 200-day MA 2. The index is moving higher but there are still less stocks setting up. This is a textbook VCP setup breaking out. I like to see some follow through action from now.
IDX:BBNILong
by rifqonr
PJAA (VCP - 24W 20/4 3T)I bought my positions today January 8, 2024 Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. Dried-up volume, indicating all the selling has been exhausted 5. Huge volume on the breakout 6. Strong fundamental basis with triple digit percentage earnings Flaws: 1. The market is still in a hard-penny environment with only 31% of total stocks above the 200-day MA 2. The index is moving higher but there are still less stocks setting up. I like to see some follow through action in the upcoming days
IDX:PJAALong
by rifqonr
Understanding the Volume Contraction Pattern (VCP)The VCP is an essential pattern for swing traders, as it signals the potential for a significant price move. The pattern occurs when a stock goes through a series of contractions in price and volume, indicating that selling pressure is waning and the stock is setting up for a potential breakout. Key Components of VCP: Trapped Buyers (TBs): These are investors who bought at the peak and are now "trapped" in a position as the stock price declines. They are likely to sell when the price gets back near their purchase price, creating resistance. Loss Cutting (LC): As the stock declines, some investors will cut their losses and sell their positions, adding to the downward pressure. Profit Taking (PT): Once the stock rebounds, those who have profits from buying at lower prices may start to take profits, which can lead to a temporary reversal or pullback in price. Bottom Fishers (BFs): These are investors who are looking to buy the stock at what they perceive to be a bargain price, often near the lows of the pullbacks. Stages of VCP: Initial Decline (1): The stock experiences a significant drop in price, often on high volume, indicating strong selling pressure. First Contraction (2): The price begins to stabilize and contract. Volume diminishes here, suggesting that selling pressure is decreasing. Advance (3): The stock price rises, potentially leading to TBs selling near their break-even points. This can create resistance, but if the stock can move past this level, it's a positive sign. Second Contraction (4): A higher low is formed compared to the initial low. Volume contracts further, indicating selling pressure continues to wane. Subsequent Advance and Contractions (5): The pattern repeats, with each pullback being shallower and on lower volume, showing that supply is being absorbed and demand is taking over. Breakout (6): Finally, the stock breaks out from the VCP on increased volume, signaling that demand has overwhelmed the remaining supply. Trading the VCP: When trading the VCP, look for the following: A series of at least two contractions in price range and volume. Each contraction should be shallower than the last, showing less and less selling pressure. The breakout should occur on higher volume, confirming the pattern. Entry Point: A trader might enter a position as the stock breaks out from the final contraction. Stop Loss: A stop loss can be placed under the most recent low of the last contraction to limit risk. Profit Target: Targets can be set based on previous resistance levels or a multiple of the risk (stop loss size). Remember, while the VCP is a strong pattern, it's not foolproof. Always use proper risk management and consider the overall market conditions before taking a trade.
NASDAQ:COINEducation
by JS_TechTrading
1
VCP Breakout Buy in NVONovo Nordisk is emerging from a textbook volatility compression pattern (VCP) - the setup made famous by Mark Minervini. Notice the series of progressively shallower pullbacks from left to right as supply has been absorbed by buyers. NVO is a market-leading stock by all accounts. Shares are up 75% over the last twelve months with no signs of slowing down. This is largely thanks to its new weight loss drug showing tremendous results in clinical trials. The company has also experience accelerating earnings growth for the last several quarters - another favorite quality of Minervini's for identifying top performers. NVO looks buyable here as a swing trade with a stop loss 9-10% below the current price.
NYSE:NVOLong
by rossgivens
1
ACES (VCP - 12W 18/3 3T)I bought my positions today October 12, 2023 The reasons: 1. Low-risk entry point 2. Prior strong upside move 3. Has gone through a majority line of supply 4. A breakaway move, the first breakout after the stock in a confirmed stage 2 uptrend 5. High relative strength 6. The stock explodes 83% while the market only goes up 2% 7. Volume dries up as less supply coming to the market 8. Huge volume on the breakout Flaw: The market is still in a hard-penny environment with only 35% of total stocks above the 200-day MA. I like to see the stock holds up and follow through.
IDX:ACESLong
by rifqonr