VCP Staircase Technique & Golden Cross: Combining Minervini & VSA Frameworks
The Volatility Contraction Pattern (VCP) popularized by U.S. investing champion Mark Minervini is adapted on JerungBursa with Golden Cross validation. This model achieves the highest win rate in our backtested simulations.
How Does VCP Staircase Work?
VCP reflects a progressive drying up of market supply. On each successive price consolidation, the percentage depth of the pullback contracts progressively:
When pullback depth shrinks down to phase C3 (3%-4%), panic selling is exhausted and only committed long-term holders ("tight hands") remain. Breakouts from this contraction stage yield exceptional Risk-to-Reward ratios exceeding 1:3.
💡 Volume Clue: Look for volume volume drying up to 30-50% below 20-day average during C3. That confirms supply depletion right before explosive volume expansion.