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VCP Volitility Contraction Pattern Minervini

I find nothing in a search for this here. I would like to have a scan to find stocks in a VCP Volitility Contraction Pattern as taught by Mark Minervini. I am surprised that I con't find anything here on the topic. Has anyone produced this...I would love to "stand on your shoulders" rather than reinvent. Maybe I am not searching correctly....


  • VCP is a squeeze. The Standard Deviation and/or the ATR would be the indicators. The Standard Deviation is used in the calculation of the Bollinger Bands. The ATR is used in the calculation of the Keltner Channels. You can find Squeeze scan codes and discussions, using the search.

    On ThinkorSwim, there are a few custom indicators that were created that use the squeeze framework. That ThinkScript code is listed below.

    # Momentum Squeeze
    # Mobius
    # Added Squeeze Label with directional color
    # Label is green when momentum is ascending, red when descending

    input length = 20; #hint length: Length for average calculation
    input price = close;
    input SDmult = 2.0;
    input ATRmult = 1.5;

    def K = (Highest(High, length) + Lowest(low, length)) / 2 + ExpAverage(close, length);
    def Momo = Inertia(price - K / 2, length);
    def SD = StDev(close, length);
    def Avg = Average(close, length);
    def ATR = Average(TrueRange(high, close, low), length);
    def SDup = Avg + (SdMult * Sd);
    def ATRup = Avg + (AtrMult * ATR);

    def Squeeze = if SDup < ATRup then 0 else Double.NaN;

    assignpriceColor(if squeeze ==0 then color.gray else
    if momo > momo[1] then else

    This link gives a good tutorial on VCP

    So you'd want to combine the Squeeze with some momentum indication

    Link below covers Squeeze code.

    Momentum can be shown by pretty much any indicator that follow price movements, including price. I'm not too familiar with Minervini so I don't know what he uses for momentum.

    If you get stuck, post what you have and what you're trying to accomplish for assistance.
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