# What is VCP > Volatility contraction: shrinking pullbacks, drying volume, the pivot and the breakout. Canonical: https://getmarketstrength.com/watch-what-is-vcp Last updated: 2026-11-07 English · 2:40 · Published 2026-10-28 Volatility contraction: shrinking pullbacks, drying volume, the pivot and the breakout. ## What the video says Before many big moves, a stock goes quiet. Its swings get smaller and smaller, until it barely moves at all. This is called a VCP, a volatility contraction pattern. The idea was made popular by Mark Minervini. It is one of the most watched setups among momentum traders. It always starts with a stock that is already strong. A solid uptrend, and a high RS rating. Then the stock pauses, and starts building a base. The first pullback is the deepest. Say, twenty five percent from the high. The stock rallies, then pulls back again. This time only twelve percent. Then once more, only five percent. Each pullback is smaller than the one before. That is the contraction. Why does this matter? Every pullback shakes out sellers. Each time, fewer people are willing to sell, so the dips get shallower. Now look at the volume. On the right side of the base, volume dries up. The stock goes very quiet, because almost nobody is selling anymore. The top of the last contraction is called the pivot. It is the line the stock needs to clear. The breakout comes when price closes above the pivot, on volume well above average. That burst of volume shows demand is back. If the breakout fails, most traders place a stop just below the low of the last contraction. Because that contraction is tight, the risk stays small. Here is a VCP on a real Market Strength chart. Nineteen percent, then eleven, then six. Each one tighter. A few things to check. The stock should be near its fifty two week high. The trend should be up. And the last contraction should be tight, usually under ten percent. On Market Strength, the Stock Screener has a ready VCP screen. Every chart lists the contractions under Setups. And in Tools, the Pattern Finder has a VCP preset, so you can find the shape across the whole market with one tap. Market Strength is an education and research tool, not investment advice. [Read the guide: VCP scanner for NSE stocks](https://getmarketstrength.com/vcp-pattern-scanner) ## More videos - [What is Relative Strength](https://getmarketstrength.com/watch-what-is-relative-strength) (English, 2:53) - [Getting Started: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-getting-started) (Hindi, 1:48) - [Workspace: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-workspace) (Hindi, 2:11) - [What is a Darvas Box](https://getmarketstrength.com/watch-what-is-a-darvas-box) (English, 2:31) - [What is Stage Analysis](https://getmarketstrength.com/watch-what-is-stage-analysis) (English, 2:41) - [What is Market Breadth](https://getmarketstrength.com/watch-what-is-market-breadth) (English, 2:42) - [Sector Rotation: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-sector-rotation) (Hindi, 2:05) - [What is Sector Rotation](https://getmarketstrength.com/watch-what-is-sector-rotation) (English, 2:30) - [Stock Screener: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-stock-screener) (Hindi, 2:37) - [What is the Trend Template](https://getmarketstrength.com/watch-what-is-the-trend-template) (English, 2:37) - [What is a Cup with Handle](https://getmarketstrength.com/watch-what-is-a-cup-with-handle) (English, 2:39) - [What are Moving Averages](https://getmarketstrength.com/watch-what-are-moving-averages) (English, 3:17) - [What is Position Sizing](https://getmarketstrength.com/watch-what-is-position-sizing) (English, 3:23) - [A 52-week-high breakout routine (Hindi video)](https://getmarketstrength.com/watch-52-week-high-breakout-routine) (Hindi, 14:23) - [Reading relative strength on a chart (Hindi video)](https://getmarketstrength.com/watch-relative-strength-indicator-tradingview) (Hindi, 10:26) - [Reading a rotation chart step by step (Hindi video)](https://getmarketstrength.com/watch-sector-rotation-rrg-chart) (Hindi, 14:34) - [Market Strength Scanner: Full Walkthrough (Hindi)](https://getmarketstrength.com/watch-market-strength-full-walkthrough) (Hindi, 17:42) [All video lessons](https://getmarketstrength.com/videos) --- Source: Market Strength Scanner (https://getmarketstrength.com). Educational content, not investment advice. Cite with the canonical URL above.