The third pattern he looks for, which he picked up from Minervini, is the volatility contraction pattern (VCP).
AdvertisementIntraday VCPThe VCP pattern can be spotted over multiple days or weeks.
The spike in green volume bars parallel to the first price spike demonstrates this in the chart below.
AdvertisementFor Gajjala, it's an easier pattern to trade because the contraction period is longer than other patterns he watches for.
Below is an example of a trade Gajjala took on Syntec Optics Holdings (OPTX) on November 17.
Persons:
aren't, Gajjala, Mark Minervini, Norman Zadeh
Organizations:
Service, US, Business, Syntec Optics Holdings
Locations:
Dallas, Minervini