Thread by @vcpchartist

Volatility contraction concept by Legend @markminervini

If a stock is under accumulation, a price consolidation represents a period when strong investors ultimately absorb weak traders. Once the “weak hands” have been eliminated, 1/8

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the lack of supply allows the stock to move higher because even a small amount of demand will overwhelm the negligible inventory.This is referred to as the line of least resistance.Tightness in price from absolute highs to lows and tight closes with little change in
price
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from one day to the next and also from one week to the next are generally constructive. These tight areas should be accompanied by a significant decrease in trading volume. In some instances, 3/8

volume dries up at or near the lowest levels established since the beginning of the stock’s advance. This is a very positive development, especially if it takes place after a period of correction and consolidation, 4/8

and is a telltale sign that the amount of stock coming to market has diminished. A stock that is under accumulation will almost always show these characteristics (tightness in price with volume contracting). 5/8

This is what you want to see before initiate your purchase on the right side of the base, which forms what we called the pivot buy point. Specifically the point which the point at which you want to buy is when the stock moves above the pivot point on expanding volume. 6/8

VCP Footprint
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This is a vital concept for successfully timing the continuation of an existing trend. For the best situation, during the contraction of volatility volume will also contract in a specific point. 8/8

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