1⃣Tightening from Left to Right Within The Base: Proper VCP patterns show volatility reducing as time goes on. This means that the stock makes higher lows, with highs staying almost equal throughout the base. Example:

2⃣Signs of Accumulation: To have a proper VCP pattern, especially on relatively bigger bases, we have to be looking for accumulation signatures throughout the base. We have already talked about it several times, so I'm sure you all know about it, Right? Still I'll repeat

3⃣Dry Volumes on the Right: It's crucial to identify accumulation volume, but we also need to observe an absence of distribution. A clear indication of lack of supply is? When the price drops or consolidates on declining volume or stable volumes that are much lesser than

4⃣Tight final contraction: Last but not the least, we want to see a tight final contraction before breaking out higher. And volumes must be really dried up. This allows us to manage risk. We have a Laser sharp Entry Point (Above the Pivot) and a clear low to set our stop

Which Time frame to trade this on? No matter if you’re focused on a weekly, monthly, daily, or intraday chart, you’ll now be able to quickly spot the VCP pattern on all of them. I mostly use it on daily and 1 min TF.

To revise what we learned today, here are the key points once again: 1. Tightening within the base 2. Signs of Accumulation (Mainly Pocket Pivots and High Volume Rallies) 3. Dry Volumes on the Right 4. Tight final contraction (with Dry volumes)

That's it from my side today If you genuinely loved this Deep analysis on VCP, and want me to continue writing such posts, Follow me @MaiHoonSaurabh

@MaiHoonSaurabh Hey Saurabh, where sre the sma's in this example? Thanks

@ademir300 The stock was surfing 10/20EMA in the last contraction.