$BB Offers a Classic VCP Breakout Example

I want to buy stocks under accumulation. Then, as price tightens before a breakout, I want volume to dry up—showing that supply has stopped coming to the market. On the breakout, I want volume to expand again.

I use this in conjunction with my VCP Tightness score and, most importantly, my own review of the chart.

High-volume up days above my RVOL threshold—1.5x here, but fully customizable—highlight the chart GREEN from top to bottom. High-volume down days highlight it RED.

I want to see plenty of green during the prior advance, followed by tight, quiet price and volume action. I do NOT want to see red in the days prior to the breakout (there are exceptions).

$BlackBerry(BB)$ is an extreme example, but a clean one. Look at all the green after the 4/9/26 earnings gap. Then look at the gray-filled inside day at the 10 EMA, with the gray dot directly below it. That marks the volume dry-up just before the stock continued into another huge move higher.

The exact RVOL multiple is shown beneath each qualifying high-volume bar, making it easy to review prior gaps and volume surges. I kept the labels small so they don’t clutter the chart—hover over one to expand it and see the full reading.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet