Trade Like A Stock Market Wizard By Mark Minervini -
The Volatility Contraction Pattern (VCP) is Minervini’s signature technical tool. The logic is simple: for a stock to launch higher, the "weak hands" (uncommitted sellers) must be shaken out.
Minervini argues that explosive moves are born from periods of contraction. By identifying periods where volatility shrinks (VCP) and supply is absorbed by strong hands, a trader can enter a position where the downside is capped (tight stop loss) but the upside is open-ended (momentum explosion). This creates a "Superperformance" trade. trade like a stock market wizard by mark minervini