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Glossary — V
VCP (Volatility Contraction Pattern)
A pattern identified by Mark Minervini where price consolidates in a series of tightening contractions (each pullback smaller than the last), indicating supply is being absorbed before a breakout.
Volatility
The degree of price variation over time. High volatility means large price swings; low volatility means small movements. Volatility tends to be mean-reverting — periods of low volatility precede high volatility and vice versa.
Volume
The number of shares, contracts, or lots traded during a given period. Volume confirms the strength of price moves — a breakout on high volume is more reliable than one on low volume.
Volume Profile
A charting tool that displays the volume traded at each price level over a specified period, creating a histogram on the price axis. High-volume nodes act as support/resistance; low-volume gaps are areas of fast price movement.
V-Reversal
A sharp, quick reversal from a downtrend to an uptrend (or vice versa) with almost no consolidation, forming a V-shape on the chart. Difficult to trade as there is little time to enter.
VWAP (Volume Weighted Average Price)
The average price weighted by volume throughout the trading day. Institutional traders often use VWAP as a benchmark — price above VWAP is bullish, below is bearish.