Category: **VCP

Strategy adapted from the book Think & Trade Like a Champion. The volatility contraction pattern (VCP)


Today took a huge 13.49% loss on extremely large volume. Remove from watchlist.


It keeps being rejected each time it crosses over 18.50 resistance and weekly and daily strength indicators are strating to show weakness. If the weekly MACD crosses down, close the position..


Looks like a good turn around play. The previous 2Q’s were bad, but the MRQ saw a big recovery with quality earnings. Those 2Q’s were bad EPS misses which cause an average 2.91% EPS miss. R has actually staued consistent. NI took a hit, but rebounded well, same with CFO. Margins went down, but also…


Fundamentally look like they are in a transitory area. Possibly a turn-around moving into a more stable financial situation and into more consistent profitability. Their EPS is only and average 7.71% beat, but has grown QoQ. Their R has also shown consistent growth QoQ. Their NI has been very inconsistent 2Q over the past year…


Today made a new ATH, but then reversed soon after. It closed at the low of the day on increasing volume. It’s heading for the next support level at 62.50. Watch to see how it reacts there. If it breaks, then the pivot at 59.80 is next.


Yesterday looks like it was a false move. Today got rejected above 18.50 resistance and closed at the low of the day on increasing volume from yesterday. I’m expecting another retest of the pivot arount 17.16. Depending on how it reacts there, add he remaining 40%.

OPEN: STC(1) 20% Long at $64.57

OPEN: LCUT(2) 40% Long at $18.60

PENDING: STC(1) 20% Long

Today made a strong move off the 62.50 support, which is what I was watching for. The daily strength is gaining momentum as is the weekly. Place an order just over the high of the day. But, the price is close t ATH and overbought conditions so only buy 20%.

PENDING: LCUT(2) 40% Long

Looks like the low of yesterday was the mentioned retest of the pivot. Today made back most of the losses and closed back over the 18.50 resistance. The volume could have been higher, but was still relatively high. Place a 40% order just above today’s close.


Got hammered today on relatively the same amount of recent volume. The pivot, 20 and 50SMA’s are all converging at the same place. Wait for a retest of the pivot. If it passes add at least a 40% position.

OPEN: LCUT(1) 20% Long at $18.53


Fundamentals look great! Nice EPS expansion with 60.51% average beat. R and NI are showing solid and consistent growth. CFO has faltered the previous Q and was not quality earnings. However, that was well made up foe in the MRQ. Margin growth has been good with a solid 9.24% average margin and 74.92% YoY growth….


Solid move over 18.50 resistance on increasing volume. The opening gapped over my limit order, so it didn’t trigger the buy. It closed with some pullback, leaving an upper wick about the same size as the body. Keep the order open in case the pullback continues and retests the 18.50 area.

PENDING: LCUT(1) 20% Long

There was no pullback to the pivot. Instead big volume and a big move up. Strength on the daily increased and weekly still looks strong. MACD crossed. ADX is still low at 14.5, but moving up. Still haven’t closed over the 18.5 resistance, so start a position, but keep it small until it does.


Fundamentals look inconsistent, but overall good. Average EPS beat is 200.48%. Last 2Qs were expected to be EPS losses, but were positive surprises. Revenue has shown consistent growth. A year ago the Net income was at a loss, but has swung to profit each Q since. 3 and 4 Qs ago showed big gains, but…