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VCP

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
KAYU - POWER PLAYI bought my positions today October 6, 2023 The reasons: 1. Low-risk entry with a crisp pivot point 2. The stock went up >100% in less than 8 weeks 3. VCP characteristics during the pause 4. The pause has less than 25% correction 4. Volume dries up as a sign of less supply coming to the market 5. Good close and Huge volume on the breakout 6. A high alpha stock with a low standard deviation 7. One of the leaders in this market environment The flaw: The market is still in a hard-penny environment with only 31% of total stocks above the 200-day MA. This stock is so strong, a Power Play on top of a Power Play. I like to see some follow-throughs in the upcoming days.
IDX:KAYULong
by rifqonr
PANTECH is back?I shared PANTECH chart back then in 30th March (link below). The breakout doesn't last long and sell out was triggered due to break support. This is a breakeven trade back then. The chart that formed a double bottom. And recently higher low is observed with volume start to come in. QR look decent too. Will PANTECH further attack? Disclaimer: Information presented here is not intended to be used as the sole basis of any investment decisions nor should it be construed as advice designed to meet the investment need of any investor. Trade at your own risk.
MYX:PANTECHLong
by adamkhoosk
BEEF - POWER PLAYI bought my positions today August 25, 2023 The reasons: 1. Low-risk entry point 2. The stock is up >100% in less than 8 weeks 3. Corrected the least during the pause, less than 25% correction 4. Volume dries up as a sign of less supply coming to the market 5. High alpha stock with a low standard deviation 6. It has VCP characteristics 7. Huge volume on the breakout 8. The theme: Power play. The setups work well in this current market environment The flaw: No identifiable flaws thus far This is a textbook Power Play stock breaks out of a base. I like to see the stock moves constructively in the upcoming days.
IDX:BEEFLong
by rifqonr
PECCA Weekly Chart VCPWilliam O'Neil got a lot of weekly chart example in his book: How to Make Money in Stocks. PECCA chart is hidden in daily chart. Amazing setup seen in weekly chart. The base of the chart used 770 days to form with below contraction: C1: -43% C2: -15% C3: -6% C4: -5% Attempt breakout last week and pull back this week (natural reaction), forming a pivot and this is consider a low risk entry point (<5%) Let's monitor. Disclaimer: Information presented here is not intended to be used as the sole basis of any investment decisions nor should it be construed as advice designed to meet the investment need of any investor. Trade at your own risk.
MYX:PECCALong
by adamkhoosk
BDKR - PRIMARY BASEI bought my positions today May 25, 2023 The reasons: 1. Low-risk entry point 2. The stock offers the first buyable base after an IPO 3. It has a very tight pivot level/line of the least resistance 4. High relative strength stock 5. It has VCP characteristics 6. I got an 80% win rate on a primary base setup Flaw: 1. The market is still in a correction 2. Lack of setup in the market I had a pilot position on May 23, 2023. Today, I added it into a full position.
IDX:BDKRLong
by rifqonr
Weekend Review of the NIFTYNowadays we have been hearing that the next decade belongs to India. Many, including Morgan Stanly expect Indian Markets to do very well in the next five years with a strong Bull market. Maybe the only apprehension is that this is a Election Year which can hold back the Market. Technically, the weekly charts is showing that the NIFTY is clearly gearing up for a big move with a nice VCP pattern. So, there is a high probability that we will see start of a new big up move soon. It is possible that we may see one more smaller contraction before the big up move. On the Daily Chart, though we saw some weakness today, the overall bullishness still remains. We saw selling dominating after many days. The index is still holding above the moving averages. Of course, the index has been under performing the wider market which was being pushed by the mid and small caps. We may see the index retreat some more next week. But the strength remains as of now.
NSE:NIFTY
by karthikmarar