vcp_breakout_scan_skill

VCP Breakout Scan Skill

Data dependencies and execution prerequisites

It is recommended to use Wind wind-mcp-skill to obtain the underlying data. Before execution, first check whether wind-mcp-skillalready exists locally; if not, prompt the user to install:

# GitHub
npx skills add Wind-Information-Co-Ltd/wind-skills --skill wind-mcp-skill -g -y

# Gitee 镜像（国内）
npx skills add https://gitee.com/wind_info/wind-skills.git --skill wind-mcp-skill -g -y

Skill positioning

This skill is used to find breakout-ready stocks whose volatility is gradually contracting, supply is gradually weakening, and price structure is maturing. The output focus is not a general search for consolidation patterns, but rather identifying which stocks have already entered the key stage of "compressed volatility, awaiting release," and whether this structure has favorable conditions for a subsequent breakout.

Function overview

The core function of this skill is to screen for VCP pre-breakout stocks with sufficient volatility contraction and breakout conditions.

It emphasizes integrating volatility compression, diminishing pullback depth, volume contraction, supply-demand improvement, and the market environment to help users build a high-quality list of breakout-ready stocks.

Use cases

The user adopts a volatility contraction strategy to find stocks in the preparation phase before a major advance.
After strong stocks pull back, it is necessary to determine which ones have completed sufficient shakeout.
The team needs to screen technical structure candidates that are "one step away from a breakout."
Chart observations need to be transformed into a disciplined watchlist.

Working principles

The core of a VCP structure is the contraction of volatility and supply; price going sideways alone is not enough.
It is necessary to check whether pullback depths are gradually narrowing, rather than stagnation after a single large decline.
Changes in volume and structural position must be judged together; extremely low trading volume cannot simply be interpreted as healthy.
It is necessary to combine fundamentals or catalyst background to confirm that it is not purely technical noise.
The main text does not explicitly mention internal implementation methods.

Execution process

Step 1: Confirm the screening targets and time frame

First clarify whether the scan target is:

Market-wide VCP pre-breakout stocks
Structural screening within a certain sector or style
Secondary consolidation of previously strong stocks
Or a focused technical structure review of watchlist stocks

At the same time, confirm whether the user is focused on daily-level contraction structures or those on a higher time frame.

Step 2: Identify the prior uptrend foundation

VCP structures usually appear in stocks that already have an uptrend foundation, so first confirm:

Whether the stock already had a clear upward leg before entering the contraction phase
Whether the prior advance was supported by fundamentals, a theme, or a capital flow mainline
Whether it is a consolidation of a truly strong stock, rather than long-term weak sideways movement

Sideways movement without a prior strong foundation can hardly constitute a high-quality VCP candidate.

Step 3: Check whether volatility contracts step by step

This is the most core judgment step of this skill. Focus on observing:

Whether each round of pullback is shallower than the previous round
Whether the high after each repair is closer to the prior high
Whether intraday and range volatility shows a compressing trend
Whether violent fluctuations are significantly reduced in the later stage of consolidation

True volatility contraction should reflect "selling pressure is decreasing," not "trading is stagnant."

Step 4: Check whether volume contracts in sync

If the volatility contraction is not supported by volume, its credibility will decline noticeably. You should assess:

Whether volume gradually shrinks during the pullback phase
Whether occasional moderate volume expansion during rebounds indicates absorption
Whether volume mildly picks up as the key level is approached
Whether there is any single high-volume decline that disrupts the supply-demand balance

Step 5: Define key levels and trigger conditions

For each candidate, you need to clarify:

Where the actual breakout trigger level is
Which price area is the most critical supply-demand turning point
What volume-price confirmation needs to appear at the breakout
How failure should be defined if it does not hold effectively

Step 6: Add fundamental or catalyst support

High-quality VCP candidates often are not just technically well structured. You also need to confirm:

Whether there is support from earnings, products, themes, orders, or industry prosperity
Whether the sector is in a strengthening cycle
If the structure holds, whether the market has reason to give it sustained attention

Step 7: Rank by maturity tiers

Divide candidates into:

Key targets with mature structures that are close to triggering
Intermediate targets whose contraction is still forming and which still need time
Cautious targets whose structures look similar but whose supply-demand is not healthy enough

Step 8: Integrate into a volatility contraction breakout draft

The final output should help users know "which stocks have the highest-quality volatility contraction, what to wait for, how to confirm, and when to give up." The main text should retain only the judgment and observation framework.

Output structure

Volatility contraction breakout candidate screening ({YYYY-MM-DD})

1. 30-second conclusion

Most mature VCP candidates: {name list}
Current structure status: {close to triggering / still contracting / structure needs repair}
Environment fit: {high / medium / low}
Biggest risk: {one sentence}

2. Candidate pool overview

Stock	Prior strength base	Volatility contraction quality	Volume convergence quality	Trigger readiness	Priority
{Target 1}	{strong/medium/weak}	{high/medium/low}	{high/medium/low}	{high/medium/low}	{A/B/C}
{Target 2}	{rating}	{rating}	{rating}	{rating}	{rating}

3. Key candidate breakdown

{stock name}

Structural characteristics: {content}
Key levels: {content}
Ideal confirmation signal: {content}
Conditions still lacking: {content}
Invalidation boundary: {content}

4. Watchlist

{observation point 1}
{observation point 2}
{observation point 3}

5. Risk disclosure

{risk 1}
{risk 2}
{risk 3}

Quality requirements

Volatility compression and volume convergence must be assessed simultaneously.
Do not misjudge ordinary sideways movement or weak consolidation as a VCP.
Key levels, confirmation conditions, and invalidation boundaries must be clearly specified.
Fundamental or thematic support should be supplemented to avoid purely chart-based conclusions.
The output should serve continuous tracking of breakout-ready stocks.