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VCP

HEXIND VCP SetupHEXIND developed VCP with below contraction on the left: C1: -21% C2: -14% C3: -5% C4: -4% On the right, price breakout with volume on 2 Sep. Correction occur to test new support on 12, 13, 14 Sep. After correction, price and volume setup again with 6.5% RISK. Let's see how it will develop. Can refer to my previous VCP sharing link below for CFM, GAMUDA... 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.
HLong
by adamkhoosk
Volatility Contraction PatternJS-Masterclass #4: The Volatility Contraction Pattern The Volatility Contraction Pattern (VCP) is a vital concept for successful traders and a key element in our JS-TechTrading strategy. In this tutorial, we will cover the following: 1. Why is it important? 2. The ‘Overhead Supply’ Concept 3. How to identify a VCP? 4. The Perfect Entry Point 1. Why is it important? The Volatility Contraction Pattern (VCP) allows us to find stocks which are getting ready to form a very specific low risk entry point at which the potential reward of our trades outweigh the risk. The main role that VCP plays is establishing a precise entry point at the line of least resistance. If a stock is under accumulation (large institutions putting their money into the stock), a price consolidation represents a period when strong investors ultimately absorb weak traders. Once the “weak hands” have been eliminated, the lack of ‘overhead supply’ (explanation see below) allows the stock to quickly 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 from one day to the next and also from one week to the next can generally found in constructive Volatility Contraction Patterns. These tight areas should be accompanied by a significant decrease in trading volume. 2. The ‘Overhead Supply’ Concept Any price action in the stock market is the simple result of supply and demand, just like in any other business. If demand is bigger than the supply, the price goes up. If supply outweighs demand, prices are falling, it is as simple as that! What happens to supply and demand in a Volatility Contraction Pattern? Point 1: Traders buying at point 1 in the graphic are called ‘Trapped Buyers (TBs)’. Point 2: the price has fallen and many people think the stock is ‘cheap’ at this price and buy the stock – the so called ‘Bottom Fishers (BFs)’ provide the relevant demand needed to trigger a price increase. Point 3: the price has come back up to the level at point 1. Now two things happen a) The Trapped Buyers who bought a price level 1 are very happy to get out of the trade at breakeven after having had paper losses at point 2. The cut their losses (LC) and provide the relevant supply to the market needed to trigger a declining price. b) The Bottom Fishers take nice quick profits and sell their stocks, providing additional supply to the market which adds to the decline in price. Points 4, 5, 6: The same concept applies here but as time goes by, the volatility contracts from left to right as fewer and fewer traders provide their demand and supply to the market, the price action dries out like a towel: 3. How to identify a VCP? A common characteristic of virtually all constructive price structures (those under accumulation) is a contraction of volatility, from greater volatility on the left side of the price base to lesser volatility on the right side in the chart. This pattern needs to be accompanied by specific areas in the base structure where volume contracts significantly: Let’s look at an example: In this example, we are seeing a total of 5 contractions from left to right, starting from 1 (ca. 25% decline) to 5 (< 5% decline) under significantly reduced trading volume. This is exactly what we want to see. At the final base 5, supply has stopped coming to market which is the reason for the low trading volume in this time-period. Due to the lack of supply, only very few demand is needed to push the price significantly higher. We therefore have a high probability of an explosive price increase. Also, we can set our SL just below the final base at 5 which means that our max. risk for this trade is < 5% - our potential reward significantly outweighs our risk. 4. The Perfect Entry Point When the price breaks out of the right side of the final base under higher volume, we have a perfect entry point. As the supply has stopped coming to market, only little demand is needed to cause an explosive price move upwards. Furthermore, the volatility contraction results in a tight base at the right end of the pattern resulting in a low risk entry point – the Stop-Loss can be set under the low of the latest base structure on the right side of the pattern which is normally in the range of about 5% risk. This is a vital concept for successfully timing the continuation of an existing trend.
Education
by JS_TechTrading
2
Specialized education that secures jobs equals +100% from lowsAdtalem Global Education is a leading healthcare educator that partners with organizations to address workforce needs and empower career development across the medical and healthcare industries. I've been watching this stock for a while and finally is signaling an actionable pivot buy. Price is close to its 50-day MA which can act as a good support level. I'd place mi stop just below it. Yesterday's volume was above average so I'll wait until near the close to assess today's volume. This stock is up +100% from its February low, that's right it bottomed in February. If this is not leadership, don't know what it is.
NYSE:ATGELong
by dpuleo19
HEXTAR VCP AGAIN!! HEXTAR was one of my best trade in 2021 with a compound % gain of 74%! All 3 trades back then in 2021 were just using VCP. You guys can see the link below that i shared last year Jan 2021, July 2021. I didn't share on TradingView during November 2021 setup but I do trade and update members in my weekly stock pick. AGAIN, VCP is developed since April 2022 with 4 contraction below: C1: -25% C2: -12% C3: -5% C4: -5% HEXTAR start caught my attention during C3 area after QR was released. C4 looks rigid. The price/volume setup was crispy. Let's see. 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:HEXTARLong
by adamkhoosk
PBBank VCP aka cup & handle pattern. 20/Sept/22PBBank. Look like we have A VCP chart pattern. A chart pattern “refined” by famous Mark Minervini ( US 1997, 2021 investing championship winner) which got inspired by William J. O’Neil defined “Cup and handle” pattern..p/s or anything “chart pattern” you have “discovered/defined “? Making it “famous”?...Also the “cup & handle / VCP” pattern “closed” to 1 of variation of “triangle pattern” which is “ascending triangle “...with breakout. With rate hike all over the world. Banking sector might be “benefit” most. Price of PBBank could reach RM6.80 which is about 47.47% gain from current price level.
MYX:PBBANK
by SteveTan
TM entering stage 2I covered TM for VIP members back in 13 Aug when i see the stocks entering from stage 4 to stage 2. (Screenshot) There is a cheat buy area on 15 Aug as the volume start flowing in. Price solid breakout on 16 Aug. Price experience correction before QR release. After good QR released, market got good respond and price went back up. Currently price under natural reaction. Will it be another opportunity for us? 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:TMLong
by adamkhoosk
GAMUDA Weekly ChartI shared GAMUDA VCP setup earlier on 15 July. Can check the link below. Today i want to share the weekly chart setup for GAMUDA. Chart forming back stage 2 starting March 2022. Blue line pointing up. 18 July weekly price breakout the primarily trendline. After breakout resistance, it will re-test the resistance as it support. (15 Aug that week) After re-test, price bounce back to and this week shown breakout! Let's see if can further attack or not. Check out the volume development in weekly chart. Institute is accumulating the ticket starting end of Feb. Disclaimer: Not a buy call recommendation, just my personal analysis based on chart pattern and technical indicator. Trade at your own risk.
MYX:GAMUDALong
by adamkhoosk
PTRANS awaiting breakoutPTRANS i first traded during 27 Jun when the price breakout from VCP with contraction below: C1: -9% C2: -7% C3: -3% On 15 Jul, huge candle price range with volume trigger me to execute sell out. Got >12% reward through this trade. I still keep monitoring the price/volume interaction after sell out. Recent volume development is good. 25,26,29 Aug indicate 3 white soldier candle. Awaiting a solid candle breakout! Disclaimer: Not a buy call recommendation. Just my personal technical analysis based on chart pattern. Trade at your own risk.
MYX:PTRANSLong
by adamkhoosk
Anatomy of a Breakout TradeThis is the anatomy of a breakout trade. First, you want to see a large advance in the stock. At a minimum, price should be at least 30% above its 52-week low. Stock will often be up several hundred percent before forming this pattern. Next, you want to see a series of pullbacks - each with a shallower depth than the last. Mark Minervini refers to this as a volatility compression pattern or "VCP". This pattern is a visual representation of the supply/demand dynamic playing out. There is supply, i.e. sellers, near the $33 level. Each time the stock reaches that level, selling pressure sends the stock lower. However, as those sell orders are worked through, each pullback should be shallower than the last - a sign that there are now fewer sellers. The stock is being transferred from weak hands to strong handed buyers. Ideally, you want to see the final pullback in the single-digit range. Look for signs of institutional accumulation during this pattern. These are large green volume candles showing heavy buying by large funds. I also like to see volume dry up in the final days leading up to the breakout. This is further confirmation that sellers are gone and the stock is becoming harder to buy. With little supply, any increase in demand, i.e. buying, will easily propel the stock higher. Finally, you want to buy the moment the stock clears resistance. If there is not a clear resistance level like on this chart of CCB, use the high of the most recent pullback as your breakout point. This is where you want to buy. Place a stop beneath the last swing low (the low of the last pullback). If done properly, you should never need to risk more than 10%. Although not necessary for a successful trade, high volume on the day of the breakout and during additional up days soon after the breakout will greatly increase the odds of a profitable trade.
NASDAQ:CCBEducation
by rossgivens
6