The Volatility Contraction Pattern (VCP) is a technical chart pattern often used in share trading to identify stocks that are preparing for a breakout.
Volatility Contraction pattern development in RVNL . first level is 19.9 %
Second level is17.25
Stock is now following the Trend lines pattern as shown .
Not necessary it will follow the same pattern.
Observations :
1. Multiple Contractions vcp-1@ 19.9 % , VCP-2 @ 17.25 %
2. Volume dry up-
3. But there is no Higher Low formation - indicating the requirement for more time to reach
actual Breakout. We can expect additional 2 or 3 Volatility contractions before actual break out .
This is not a buy sell recommendation - only for study purpose .
Volatility Contraction pattern development in RVNL . first level is 19.9 %
Second level is17.25
Stock is now following the Trend lines pattern as shown .
Not necessary it will follow the same pattern.
Observations :
1. Multiple Contractions vcp-1@ 19.9 % , VCP-2 @ 17.25 %
2. Volume dry up-
3. But there is no Higher Low formation - indicating the requirement for more time to reach
actual Breakout. We can expect additional 2 or 3 Volatility contractions before actual break out .
This is not a buy sell recommendation - only for study purpose .
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.