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Attachments: Squeeze n Go | MTF System
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Squeeze n Go | MTF System

Quoting RickM
{quote} Hi Heispark I think you can draw parallels between many pattern shapes but the VCP Pattern was made popular by a Market Wizard who had the best yearly returns of any trader inviewed by Jack Schwager. Mark Minervini used it to twice win the US Investment Championship as an amateur and went on to run his own Hedge fund producing eye popping returns. Minervini emphasizes that specific entry points are needed before you can enter a trade - this way you can be in profit almost straight away rather than suffer long periods of drawdown that destroys...
Rick, if your SL is taken, are you going to reverse your position immediately? As you know, market makers are not fool and they make fake breakouts time to time, occasionally multiple time in either side to kill breakout traders.
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • Post #222
  • Quote
  • Edited 11:05am Jan 13, 2025 10:51am | Edited 11:05am
Quoting RickM
{quote} Hi Heispark I think you can draw parallels between many pattern shapes but the VCP Pattern was made popular by a Market Wizard who had the best yearly returns of any trader inviewed by Jack Schwager. Mark Minervini used it to twice win the US Investment Championship as an amateur and went on to run his own Hedge fund producing eye popping returns. Minervini emphasizes that specific entry points are needed before you can enter a trade - this way you can be in profit almost straight away rather than suffer long periods of drawdown that destroys...
This VCP is utmost interesting. Are you making a thread by this Rick? Or can you point in a direction of further reading. I of cause found something, but it is mostly stock related and a bit to short in the explaining.

There is something about stage 1 and 2 relation. As it happens I just yesterday made a tool identifying instruments with 3 EMA's pointing in same direction - aligning well and growing. That could be part of a helping tool to identify those nice setups. Finding the trend | Page 15 | Forex Factory
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Read post #1 !! Then read it again 10 more times before you ask.
Quoting Ju4ara
{quote} So, is this basically a vcp pattern? And you enter right before a breakout when the squeeze appears and put your stop loss right below the 21ema, which makes your position more efficient, is that right?
Yes, I’m getting in early because it’s a great VCP setup where’s on a standard Squeeze setup I am waiting for a breakout of range.
However I prefer taking trades that are leaving the 21EMA so if the breakout candle is too separated from the 21, it’s a No trade for me.
Trading thin liquidity at the boundary of the charts
Quoting RiskFighter
I found the books: •Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard eBook : Minervini,...
Cheers Risk. Appreciate your efforts & general info. Trade well buddy.
Quoting RickM
What is a VCP Pattern {image}
Hello, Rick. I use the VCP (Volatility Contraction Pattern) strategy when trading stocks, and it has consistently delivered excellent results for me. Over time, I’ve developed a preference for Point & Figure (P&F) charts to identify VCP patterns, as they provide a cleaner and more straightforward representation of price action without the noise often present in traditional charts.
To refine my approach, I use larger box values and longer timeframes on P&F charts for identifying the overall pattern and structure. For entries, I switch to smaller box values and shorter timeframes to pinpoint precise breakout levels with better accuracy.
Here’s an example of my most recent trade using this method. Take a look at the P&F chart for pattern identification and the OHLC chart also
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Quoting prestige09
{quote} Hello, Rick. I use the VCP (Volatility Contraction Pattern) strategy when trading stocks, and it has consistently delivered excellent results for me. Over time, I’ve developed a preference for Point & Figure (P&F) charts to identify VCP patterns, as they provide a cleaner and more straightforward representation of price action without the noise often present in traditional charts. To refine my approach, I use larger box values and longer timeframes on P&F charts for identifying the overall pattern and structure. For entries, I switch to...
Hi prestige

That's a very interesting post, thanks for sharing. I think I need to study your P&F charts for a while to get my head around the story they are telling.
I use the VCP Pattern a lot on Stocks and Future's as well and I agree it's such a great trade setup.
Can I ask if you have used much it on trading Forex or Future's Markets and if so please share some of your experience's using this unique Pattern formation.

Cheers
Trading thin liquidity at the boundary of the charts
DOW Futures 2 Min TF, real live trades.

As previously stated, the moment EMA 21 cleared, I entered, Profit +150 pips(points), 3 trades (one earlier in London session), done for the day.
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Quoting RiskFighter
{quote} This VCP is utmost interesting. Are you making a thread by this Rick? Or can you point in a direction of further reading. I of cause found something, but it is mostly stock related and a bit to short in the explaining. There is something about stage 1 and 2 relation. As it happens I just yesterday made a tool identifying instruments with 3 EMA's pointing in same direction - aligning well and growing. That could be part of a helping tool to identify those nice setups. Finding...
Hi Risk

More strategy's on how to trade the VCP Patterns within Squeeze Setups but more importantly how to trap BIG PLAYERS that are trading like Snow Monkeys.
More about that later.
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Trading thin liquidity at the boundary of the charts
RickM, I have to give a compliment, after sooo many years knowing each other, I think I finally grabbed something from you that am trying to incorporate into my scalp trading, 21 (Fib) EMA. The more I look at it, the more I like the Fib and Ema relationship. Be safe as you coming down the mountain skiing.

We are in Budapest taking the hot thermal baths.
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Quoting driven18
RickM, I have to give a compliment, after sooo many years knowing each other, I think I finally grabbed something from you that am trying to incorporate into my scalp trading, 21 (Fib) EMA. The more I look at it, the more I like the Fib and Ema relationship. Be safe as you coming down the mountain skiing. We are in Budapest taking the hot thermal baths. {image}
Hi driven

That's why I use the 89 EMA as my BIAS TREND

Cheers
Trading thin liquidity at the boundary of the charts
Hi, is this considered a vcp pattern, and if yes, then what timeframe should I use for entry(m5 or m2)? On my own research I found that m2 has too many fakes while m5 is more stable, but gives worse RRR.
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  • Post #233
  • Quote
  • Jan 15, 7:34am (46 hr ago) Jan 15, 7:34am (46 hr ago)
Quoting RickM
{quote} Hi prestige That's a very interesting post, thanks for sharing. I think I need to study your P&F charts for a while to get my head around the story they are telling. I use the VCP Pattern a lot on Stocks and Future's as well and I agree it's such a great trade setup. Can I ask if you have used much it on trading Forex or Future's Markets and if so please share some of your experience's using this unique Pattern formation. Cheers
Thank you for your kind words, Rick! I’m glad you found my post interesting. P&F charts are indeed a fantastic tool for visualizing patterns like VCP, and once you get familiar with them, the clarity they offer can be quite eye-opening.
It’s great to hear that you also use the VCP pattern on stocks and futures—I completely agree that it’s a highly effective setup when applied with discipline and the right tools.
To answer your question, yes, I have experimented with the VCP pattern in the Forex and Futures markets. In Forex, I primarily apply VCP and other patterns to gold (XAU/USD), and it has given me good results. P&F charts are especially helpful in filtering out noise in such a volatile market, making contractions and breakout points more apparent.
However, I don’t use TradingView for P&F or Renko charts, as I’ve found their calculations and formulas for these chart types to be unreliable. Instead, I rely on an Indian market software that provides accurate formulas and calculations for P&F and Renko charts. While this software primarily supports Indian market data (e.g., MCX: GOLD FUTURE instead of XAU/USD), the movements and behavior of both charts are essentially the same. If I spot a long or short setup on MCX GOLD FUTURE, I trade the same setup on XAU/USD.
There is a way to integrate live data for Forex, crypto, and other global markets into this software—one of my friends has set it up—but since I focus on stock markets and only trade XAU/USD in Forex, I haven’t added other market data.
My approach is consistent across all markets: I start with larger box values and timeframes to identify the broader structure, then shift to smaller box values and timeframes to refine my entry and exit points. It’s a systematic process, and the results have been worth the effort.
If you’d like, I can share an example of a Forex or Futures trade where I applied the VCP pattern using P&F charts. Feel free to DM me.
here's one example of VCP and Turtle breakout system.
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  • Post #234
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  • Jan 15, 8:35am (45 hr ago) Jan 15, 8:35am (45 hr ago)
A couple of trades I took tonight was on Oil, a nice Break of the 21EMA during a Squeeze and one without the Squeeze and really just an continuation trade.
Both on M2 with a decent trade size.
The best trades always appear when traders get trapped within a range and have to COVER their positions.
Looking at the trades now, I failed to just stay in a LONG position and ADD when price pulled back to the 21EMA.
Nice profit but only a B grade for me.
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Trading thin liquidity at the boundary of the charts
  • Post #235
  • Quote
  • Jan 15, 8:43am (45 hr ago) Jan 15, 8:43am (45 hr ago)
Quoting prestige09
{quote} Thank you for your kind words, Rick! I’m glad you found my post interesting. P&F charts are indeed a fantastic tool for visualizing patterns like VCP, and once you get familiar with them, the clarity they offer can be quite eye-opening. It’s great to hear that you also use the VCP pattern on stocks and futures—I completely agree that it’s a highly effective setup when applied with discipline and the right tools. To answer your question, yes, I have experimented with the VCP pattern in the Forex and Futures markets. In Forex, I primarily...
Hi prestige

I'll PM you, I have a few questions about your setups.

I suppose I better ask about your Turtle Breakout Strategy, how does it add value to your trading?.

Cheers
Trading thin liquidity at the boundary of the charts
  • Post #236
  • Quote
  • Jan 15, 8:54am (45 hr ago) Jan 15, 8:54am (45 hr ago)
Quoting Ju4ara
Hi, is this considered a vcp pattern, and if yes, then what timeframe should I use for entry(m5 or m2)? On my own research I found that m2 has too many fakes while m5 is more stable, but gives worse RRR. {image} {image}
Hi Ju4ara

I would be happy to call that setup a VCP Pattern, very few are prefect.
We do need that first downwards move to be a strong rejection and then get higher lows while disregarding wicks.
M5 is a good all around timeframe from which we can scalp with good results, I fine personally that M2 works better on Future's because the candle highs and lows are different from CFD charts often meaning the setups are often more available.

Cheers
Trading thin liquidity at the boundary of the charts
  • Post #237
  • Quote
  • Jan 15, 9:01am (45 hr ago) Jan 15, 9:01am (45 hr ago)
Quoting prestige09
{quote} Thank you for your kind words, Rick! I’m glad you found my post interesting. P&F charts are indeed a fantastic tool for visualizing patterns like VCP, and once you get familiar with them, the clarity they offer can be quite eye-opening. It’s great to hear that you also use the VCP pattern on stocks and futures—I completely agree that it’s a highly effective setup when applied with discipline and the right tools. To answer your question, yes, I have experimented with the VCP pattern in the Forex and Futures markets. In Forex, I primarily...
I have to commend you on intelligent look at squeeze pattern. It states you started on Forex Factory in 2022. Have you been trading long?
  • Post #238
  • Quote
  • Edited 9:21am Jan 15, 9:08am (45 hr ago) | Edited 9:21am
This is more for Machine and other subs here..

Rick, I am going to use your chart(last time )..I will repost my below.

50% of my trading is happening on Limit Buy/Sell orders...your chart is perfect for this demonstration.

Let the burst away from EMA 21 happen and then wait for retracement to value area(my name for it).

I would recommend for more aggressive traders to come in on Full Position on Limit orders, no add ons, first trade on Limit Sell and second trade on Limit Buy.

Second chart is my chart from yesterday - Blue circles would of been Limit Buy and Limit Sell.
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  • Post #239
  • Quote
  • Jan 15, 11:09am (43 hr ago) Jan 15, 11:09am (43 hr ago)
Quoting prestige09
{quote} Thank you for your kind words, Rick! I’m glad you found my post interesting. P&F charts are indeed a fantastic tool for visualizing patterns like VCP, and once you get familiar with them, the clarity they offer can be quite eye-opening. It’s great to hear that you also use the VCP pattern on stocks and futures—I completely agree that it’s a highly effective setup when applied with discipline and the right tools. To answer your question, yes, I have experimented with the VCP pattern in the Forex and Futures markets. In Forex, I primarily...
Feel free to post whatever you please here my friend. We are all always expanding our outlook and ideologies on the market.
  • Post #240
  • Quote
  • Jan 15, 11:11am (43 hr ago) Jan 15, 11:11am (43 hr ago)
Quoting driven18
This is more for Machine and other subs here.. Rick, I am going to use your chart(last time )..I will repost my below. 50% of my trading is happening on Limit Buy/Sell orders...your chart is perfect for this demonstration. Let the burst away from EMA 21 happen and then wait for retracement to value area(my name for it). I would recommend for more aggressive traders to come in on Full Position on Limit orders, no add ons, first trade on Limit Sell and second trade on Limit Buy. Second chart is my chart from yesterday - Blue circles would...
Makes too much sense
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