What is a VCP (Volatility Contraction Pattern)?

VCP is a base pattern, popularised by Mark Minervini, where price swings and volume tighten progressively over several weeks. Each contraction is smaller than the last, reflecting diminishing selling pressure. A VCP typically resolves in a sharp breakout on rising volume.

What is Stage 2 in stock analysis?

Stage 2, from Stan Weinstein's stage analysis, is the advancing phase of a stock's price cycle. A stock is in Stage 2 when it trades above a rising 30-week moving average, with rising volume on up-weeks and contracting volume on down-weeks. Stages 1, 3 and 4 represent basing, topping and declining phases respectively.

What is Relative Strength (RS) rank?

Relative Strength rank measures a stock's price performance compared to a benchmark index over a set period. An RS rank of 90 means the stock outperformed 90% of all stocks in the universe. Stocks with high RS rank are market leaders — they tend to continue outperforming in a bull market.

What is the difference between base-formation and momentum-continuation stocks?

A base-formation name is still inside the base and has not cleared resistance in the screener's rules yet. A momentum-continuation row is one where price has already cleared the pivot definition with stronger volume—in both cases Swing Edge surfaces data for you to review; it does not instruct you to trade.

What is a pivot point in swing trading?

On charts, pivot often refers to the top of the base—the level many traders watch to see whether price escapes the range with participation. Swing Edge plots scanner-derived pivots for context; how you interpret or act on price is entirely your decision.

What is swing trading?

Swing trading is a style where people often hold positions from several days to a few weeks, aiming to capture a directional move. Descriptions here are educational; Swing Edge does not tell you whether to swing trade or invest.

Does Swing Edge give buy or sell recommendations?

No. Swing Edge offers algorithmic scans, charts and educational pages. Nothing on the site is personalized investment advice or an instruction to buy, sell or hold any security.

Is Swing Edge free to use?

Yes, Swing Edge is completely free. All screener results for NSE stocks — base-formation setups, momentum-continuation setups, downside-risk setups, Nifty market pulse and market insights — are available without any login or subscription.

Base Formation Screener

Curated base-formation opportunities

Strong stocks consolidating in tight ranges before possible expansion moves.

For research and educational purposes only — not investment advice.

Prices and day-change figures use the last daily close from the latest scan — not live intraday NSE quotes.

How the Base Formation Screener Works

What is a base-formation stock?

A base-formation stock is one building a constructive base near a clearly defined resistance level on the NSE. It has not yet cleared the pivot in our rules, while volume often dries up, trend stage improves, and relative strength firms. Some traders watch these names closely; Swing Edge simply lists algorithmic candidates for your own homework.

VCP — Volatility Contraction Pattern

VCP, popularised by Mark Minervini, is a base where each pullback is shallower than the previous one with declining volume — typically 3–5 contractions over 5–13 weeks. Literature links this shape to sharper resolutions when supply fades. Our scanner detects similar geometry on each row—not a verdict on outcome.

Stage 2 trend filter

Stage 2 stocks trade above a rising 50-DMA and 150-DMA, with the 50 above the 150 and the 150 above the 200—in textbook stage analysis this is often called the advancing phase. The scanner limits itself to Stage 1-late and Stage 2 contexts so results skew toward trending names rather than deep Stage 4 declines.

Volume dry-up & base quality

A constructive base often shows declining volume into the right side ("volume dry-up") and a clean tight area within 5% of the pivot. The Vol Q and Base Q columns score these out of 100. Higher readings mean the model liked the footprint—not a forecast that price must break.

How to Use the Base Formation Screener

Step 1 — Filter for Very Strong setups

Click the Very Strong signal filter and turn on Leading RS and Vol Confirmed. That narrows the table to names where base quality, RS leadership and volume context scored well in our model—still your job to validate on a chart and with your plan.

Step 2 — Read From-Pivot column

The From-Pivot column shows how far spot is from the scanner’s pivot definition. Many practitioners watch the band right under the pivot for context; once our rules see a confirmed clear and volume, the same symbol is more likely to appear on the Momentum Continuation table.

Step 3 — Check VCP and Vol Dry tags

A VCP tag means the scanner has detected at least 3 progressive contractions. A Vol Dry tag means average volume is lower on the right side of the base than on the left—sometimes described as quieter trade into the pivot. Tags describe model output, not a promise of profit.

Step 4 — Track resolution on scans & charts

In our methodology a base-formation label ends when price closes above the pivot with adequate volume versus its 50-DMA average. Swing Edge does not send broker alerts—re-run the scanners after fresh data loads and open the stock page for chart levels and scanner context. Confirmed setups show up with extra context on Momentum Continuation.

Learn while you scan

Short guides tied to what this scanner measures — read while you scan.

Pattern

Pre-breakout vs breakout: Pre-breakout rows are still inside the base; breakout rows cleared the pivot with volume participation.

Advice: Swing Edge is research tooling only — not buy, sell, or hold recommendations.

Coverage: ~2568 liquid NSE names scanned daily after market close.