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Pete, Hoping you can help with a chart study to identify volatility contraction patterns (VCPs) as defined by Mark Minervini. The volatility contraction pattern (VCP) is characterized by waves (contractions) where the high – low range gets propressively shallower. For example, see attached KRNT chart showing a VCP before rising sharply this month. It had a 14% drop from high to low in November, followed by consecutively smaller drops of 9.5%, 2.6%, and about 2.2%. I’ve identified each contraction of the pattern by a box. It would be great to have a chart study that identifies these contractions when there are two or more consecutively shallower contractions on the daily timeframe. If the high-to-low depth then grows beyond the previous contraction, the contraction count is reset. Thanks. Attachments:
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The complexity of the solution to this request is lightyears beyond the scope of what I provide for no charge in the Q&A forum. Price action patterns are exceptionally difficult to code. They are also prone to many false positives and missed signals. Easy to spot them with the naked eye, however the brain behind the human eye is far more advanced than any computer that has so far been created. Marked as spam
 Posted by Pete Hahn (Questions: 37, Answers: 4118) Answered on January 14, 2020 6:47 pm
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