๐๐๐ง๐๐๐๐จ๐งต: ๐๐ค๐ฌ ๐ฉ๐ค ๐พ๐๐ฉ๐๐ ๐ฝ๐๐ ๐๐ค๐ซ๐๐จ ๐๐ฃ ๐๐ฉ๐ค๐๐ ๐จ ๐ฌ๐๐ฉ๐ ๐
๐ช๐จ๐ฉ ๐๐ฃ๐ ๐๐๐ฉ๐ช๐ฅ โ ๐๐พ๐
๐ Bookmark this for reference & retweet.
๐ Bookmark this for reference & retweet.
๐๐๐๐ฉ ๐๐จ ๐๐พ๐?
VCP stands for Volatility Contraction Pattern
๐๐ฉ ๐๐๐จ 3 ๐ฅ๐๐ง๐ฉ๐จ:
โช๏ธ๐๐๐ฃ๐๐ ๐๐ญ๐ฅ๐๐ฃ๐จ๐๐ค๐ฃ
โช๏ธ๐๐๐ฃ๐๐ ๐พ๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ
โช๏ธ๐ฝ๐ง๐๐๐ ๐ค๐ช๐ฉ
Think of it like a spring compressing before it BOOMS!
VCP stands for Volatility Contraction Pattern
๐๐ฉ ๐๐๐จ 3 ๐ฅ๐๐ง๐ฉ๐จ:
โช๏ธ๐๐๐ฃ๐๐ ๐๐ญ๐ฅ๐๐ฃ๐จ๐๐ค๐ฃ
โช๏ธ๐๐๐ฃ๐๐ ๐พ๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ
โช๏ธ๐ฝ๐ง๐๐๐ ๐ค๐ช๐ฉ
Think of it like a spring compressing before it BOOMS!
๐๐๐ฃ๐๐ ๐๐ญ๐ฅ๐๐ฃ๐จ๐๐ค๐ฃ: The price range is widening over time, showing increasing volatility.
๐๐๐ฃ๐๐ ๐พ๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ:Price goes sideways in tighter and tighter ranges.
Institutional hands are loading up silently.
๐๐๐ฃ๐๐ ๐พ๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ:Price goes sideways in tighter and tighter ranges.
Institutional hands are loading up silently.
๐๐๐ ๐๐ค๐๐๐ (๐๐ช๐ฅ๐ฅ๐ก๐ฎ & ๐ฟ๐๐ข๐๐ฃ๐)
โช๏ธSellers get exhausted with each contraction.
โช๏ธSupply keeps drying up
โช๏ธBuyers remain steady.
โช๏ธDemand builds silently
โช๏ธBreakout happens when demand crushes supply.
โช๏ธSellers get exhausted with each contraction.
โช๏ธSupply keeps drying up
โช๏ธBuyers remain steady.
โช๏ธDemand builds silently
โช๏ธBreakout happens when demand crushes supply.
๐๐ค๐ก๐ช๐ข๐ ๐พ๐ก๐ช๐๐จ
โช๏ธDuring contraction -> volume should dry up.
โช๏ธDuring breakout -> volume should explode.
โช๏ธThis validates the pattern.
โช๏ธDuring contraction -> volume should dry up.
โช๏ธDuring breakout -> volume should explode.
โช๏ธThis validates the pattern.
The Contraction Principle (VCP + Volume)
In VCP, each contraction = volume dries further.
Last contraction = lowest volume.
Breakout = massive volume surge.
In VCP, each contraction = volume dries further.
Last contraction = lowest volume.
Breakout = massive volume surge.
The 10 & 20 EMA are commonly used:
10 EMA: Helps track short term momentum.
20 EMA is a bit slower and acts as a short-term trend guide.
Final contraction in a VCP should ideally occur above the 20 EMA. This shows the stock is under accumulation and being supported by buyers.
10 EMA: Helps track short term momentum.
20 EMA is a bit slower and acts as a short-term trend guide.
Final contraction in a VCP should ideally occur above the 20 EMA. This shows the stock is under accumulation and being supported by buyers.
๐๐ฃ๐ฉ๐ง๐ฎ ๐๐ฉ๐ง๐๐ฉ๐๐๐ฎ:
โช๏ธ๐๐๐๐ฉ ๐๐ค๐ง ๐๐ฃ๐จ๐๐๐ ๐๐๐ง ๐๐๐ฉ๐๐ง ๐๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ.
โช๏ธ๐๐ฃ๐ฉ๐๐ง ๐๐๐ค๐ซ๐ ๐ฅ๐ง๐๐ซ๐๐ค๐ช๐จ ๐๐๐๐.
โช๏ธ๐๐๐๐ฅ ๐จ๐ฉ๐ค๐ฅ ๐ก๐ค๐จ๐จ ๐๐ฉ ๐ฅ๐ง๐๐ซ๐๐ค๐ช๐จ ๐๐๐ฎ ๐ก๐ค๐ฌ.
โช๏ธ๐๐๐๐ฉ ๐๐ค๐ง ๐๐ฃ๐จ๐๐๐ ๐๐๐ง ๐๐๐ฉ๐๐ง ๐๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐๐ค๐ฃ.
โช๏ธ๐๐ฃ๐ฉ๐๐ง ๐๐๐ค๐ซ๐ ๐ฅ๐ง๐๐ซ๐๐ค๐ช๐จ ๐๐๐๐.
โช๏ธ๐๐๐๐ฅ ๐จ๐ฉ๐ค๐ฅ ๐ก๐ค๐จ๐จ ๐๐ฉ ๐ฅ๐ง๐๐ซ๐๐ค๐ช๐จ ๐๐๐ฎ ๐ก๐ค๐ฌ.
๐๐ญ๐๐ฉ ๐๐ข๐๐ง๐ฉ ๐ง ๐
โช๏ธSell 50% at +15% (or after 3 days)
โช๏ธRaise stop to cost after 3โ5% move in favor.
โช๏ธTrail the rest with 10 & 20 ๐๐๐ผ
โช๏ธIf price goes parabolic, lock in gains early.
โช๏ธAvoid greed - ๐๐ค๐ฃ๐จ๐๐จ๐ฉ๐๐ฃ๐๐ฎ > ๐ฅ๐๐ง๐๐๐๐ฉ๐๐ค๐ฃ
โช๏ธSell 50% at +15% (or after 3 days)
โช๏ธRaise stop to cost after 3โ5% move in favor.
โช๏ธTrail the rest with 10 & 20 ๐๐๐ผ
โช๏ธIf price goes parabolic, lock in gains early.
โช๏ธAvoid greed - ๐๐ค๐ฃ๐จ๐๐จ๐ฉ๐๐ฃ๐๐ฎ > ๐ฅ๐๐ง๐๐๐๐ฉ๐๐ค๐ฃ
Failure Signs ๐จ
โช๏ธBreakout with weak volume
โช๏ธWide bearish candle inside the base
โช๏ธClosing below EMA
โช๏ธBreakout with weak volume
โช๏ธWide bearish candle inside the base
โช๏ธClosing below EMA
๐๐๐๐ฃ ๐ก๐๐ ๐ ๐ ๐ฅ๐ง๐ค:
โช๏ธStock trading within 25% of its 52-week high
โช๏ธUp at least 20% in the last 1 month & 30% in the last 3 months
โช๏ธSector Strength : Focus on stocks from leading or emerging strong sectors.
Find โyoung stocksโ breaking out of fresh bases.
โช๏ธStock trading within 25% of its 52-week high
โช๏ธUp at least 20% in the last 1 month & 30% in the last 3 months
โช๏ธSector Strength : Focus on stocks from leading or emerging strong sectors.
Find โyoung stocksโ breaking out of fresh bases.
Example
โช๏ธStrong Rally First -> After a sharp move, sellers became active.
โช๏ธVolume Declining -> With each contraction, supply kept drying up.
โช๏ธHigher Lows -> Buyers stayed steady while sellers got exhausted.
โช๏ธTighter Base -> Price squeezed into a narrow range.
โช๏ธStrong Rally First -> After a sharp move, sellers became active.
โช๏ธVolume Declining -> With each contraction, supply kept drying up.
โช๏ธHigher Lows -> Buyers stayed steady while sellers got exhausted.
โช๏ธTighter Base -> Price squeezed into a narrow range.
โช๏ธStock made multiple contractions with volume drying up.
โช๏ธEach base was tighter than the previous one.
โช๏ธFinally, a strong breakout with volume expansion.
โช๏ธClassic example of how VCP works in practice.
โช๏ธEach base was tighter than the previous one.
โช๏ธFinally, a strong breakout with volume expansion.
โช๏ธClassic example of how VCP works in practice.
โช๏ธClear series of contractions & consolidations.
โช๏ธNotice how the volatility reduces before the big move.
โช๏ธBreakout happened with volume + price strength.
โช๏ธPicture-perfect VCP setup in action.
โช๏ธNotice how the volatility reduces before the big move.
โช๏ธBreakout happened with volume + price strength.
โช๏ธPicture-perfect VCP setup in action.
โช๏ธStrong Rejection at Top -> After the rally, sharp selling appeared.
โช๏ธBuyers Step In -> Demand showed up near support zones.
โช๏ธVolume Falling -> Each contraction showed supply drying up.
โช๏ธTighter Consolidation -> Price compressed in a narrow range.
โช๏ธBuyers Step In -> Demand showed up near support zones.
โช๏ธVolume Falling -> Each contraction showed supply drying up.
โช๏ธTighter Consolidation -> Price compressed in a narrow range.
๐๐๐ง๐ ๐๐ฉ ๐๐ค๐ฃ๐๐๐ฉ๐๐ค๐ฃ๐จ ๐ข๐๐ฉ๐ฉ๐๐ง.
โช๏ธThis works BEST when index is above 10 & 20 EMA.
โช๏ธFlat or bear markets? Avoid.
โช๏ธThis works BEST when index is above 10 & 20 EMA.
โช๏ธFlat or bear markets? Avoid.
๐๐ง๐ค ๐๐๐ฅ:
๐๐ค๐ก๐ก๐ค๐ฌ ๐ข๐ @mohitrai55 ๐๐ ๐ฃ ๐๐ ๐ฃ๐ ๐ก๐ฃ๐๐๐๐ฆ๐ ๐ฅ๐ฃ๐๐๐๐๐ ๐ฅ๐๐ฃ๐๐๐๐ค - ๐๐๐๐ ๐โโ, ๐๐๐๐๐ค & ๐ฃ๐๐ง๐๐ฃ๐ค๐๐๐ค ๐
โข โข โข
Missing some Tweet in this thread? You can try to
force a refresh
ใ
