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 | 1 |
| Successful Breakouts | 1 |
| Failed Breakouts | 0 |
| Overall Success Rate | 100.0% |
| Average Gain from Successful Trades | 22.0% |
| Average Trade Duration (Days) | 0.0 |
| Average Loss on Failed Trades | None% |
| Average Risk Reward Ratio | 1:None |
