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Volatility Contraction
A volatility contraction pattern (VCP) is a series of successively shallower pullbacks, each on lighter volume. It is less a shape than a process, and the process is supply being absorbed.
Advanced4 min read
Patterns
Failed Patterns, and What They Tell You
A failed pattern breaks the wrong way after appearing to complete, such as a breakout that falls back into its range. Most patterns fail, and a failure carries information because of who it traps.
Advanced5 min read
Patterns
Island Reversals
A cluster of bars separated from everything around it by gaps on both sides. Rare, unambiguous to identify, and about the population of holders trapped inside it.
Advanced3 min read