ONESOURCE |Volatility Contraction Pattern (VCP) |**Volatility Contraction Pattern (VCP)** – popularized by Mark Minervini as a high-probability breakout setup.
Here’s a breakdown of the VCP structure for the **ONESOURCE SPECPL PHARMA LTD** chart:
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**🔍 VCP Analysis (Volatility Contraction Pattern)**
✅ **Stock:** ONESOURCE SPECPL PHARMA LTD
✅ **Timeframe:** Daily chart
✅ **Pattern:** VCP with sequential tightening of price ranges.
**Key Characteristics:**
* **Contractions (Tightening):**
* **First contraction:** ₹1,755➡️ ₹1,200 (Large drop – “cup”)
* **Second contraction:** ₹1,755 ➡️ ₹1,319 (smaller “handle”)
* **Third contraction:** ₹1,755 ➡️ ₹1,558 (even tighter)
* **Tightening volatility:** Each pullback becomes smaller and volume decreases—a hallmark of VCP.
**✅ Breakout Trigger:**
* Clear breakout above ₹1,755 resistance zone.
* Strong volume surge—confirms institutional accumulation.
**💡 Key Targets:**
* Measured target: ₹2,305 (based on the height of the last contraction leg and breakout zone).
* As long as the price holds above ₹1,755, the VCP breakout is valid.
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**Takeaway:**
The ONESOURCE chart beautifully illustrates the VCP—each successive contraction tightens, and the breakout confirms the pattern. Traders can use a stop-loss just below ₹1,755 for a risk-managed trade.
