Mark Minervini used the Volatility Contraction Pattern to win the US Trading Tournament. The pattern is simple, use signals to sense an entry opportunity before the market continues on its strong trajectory.
At a high level, these are the guiding principles through this trading strategy:
- Trend → Noticeable demand
- Consolidation → A form of consolidation takes place
- Breakout → A breakout of resistance occurs
- Volume → An increase in volume drives the breakout
- Risk Management → Low risk entry points with a high risk:reward ratio