Volatility Contraction Pattern (VCP) is a bullish technical setup introduced by trader Mark Minervini. It describes a series of price contractions—where each pullback becomes narrower than the last—forming a coiled structure on the chart.
This signals decreasing supply as sellers get exhausted. When price tightens near a resistance level with shrinking volume, it sets the stage for a strong breakout if demand returns.
Traders look to enter on the breakout with a tight stop, aiming for a favorable risk/reward setup.
Metrics summarizing the performance of the 20 most recent breakout trades, highlighting market breadth and trends.
Metric | Value |
---|---|
Total Breakouts | 2 |
Successful Breakouts | 2 |
Failed Breakouts | 0 |
Overall Success Rate | 100.0% |
Average Gain from Successful Trades | 28.5% |
Average Trade Duration (Days) | 0.0 |
Average Loss on Failed Trades | None% |
Average Risk Reward Ratio | 1:None |
A list of stocks with VCP pattern.
(*) This trade is still active; the gain is an estimate based on the current price.