The TraderLion Podcast

How to find & trade VCP Setups Using RMV - Richard Moglen

May 9, 2026
A deep dive into Volatility Contraction Patterns and an objective indicator that scores tightness from 0–100. Multiple real chart case studies show where tight ranges form and how to spot institutional accumulation. Practical tactics for entry, stop placement, and building screens to rank names by tightness in real time.
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INSIGHT

VCPs Reveal Institutional Accumulation

  • Volatility Contraction Patterns (VCPs) signal institutional accumulation in stage-2 uptrends.
  • Higher lows and tightening price/volume indicate supply is drying up and institutions are absorbing shares, priming expansion.
ADVICE

Sort Screens By RMV To Find Tight Setups

  • Use RMV to objectively score tightness from 0 (compressed) to 100 (expansion) and spot ranges worth watching.
  • Sort screens by RMV lowest-to-highest so the tightest names appear at the top for quick review.
ADVICE

Enter Tight Areas With Small Paper Cut Stops

  • Put tight entries on the right two-thirds of a base and manage risk with a stop under the low of the day or recent swing low.
  • Enter at tight pivots to size up while keeping potential loss small relative to upside.
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