HomePremium scanner guidesVolatility Compression — Breakout Imminent

Volatility Compression — Breakout Imminent

All Markets WATCH technical SWING

ADX < 20 (low trend strength) + ATR < 2.5% of price (tight range) + volume below average. Markets coiling before explosive move. Works across all markets — enter on breakout candle with 1.5x volume confirmation. Often described as a volatility compression or coiling setup before directional expansion (educational framing, not a performance claim).

The edge — what this scanner is hunting

Coiling before expansion — a watch, not a directional call. Low ADX (under 20) means weak trend, ATR under 2.5% of price means a genuinely tight range, and below-average volume means the market is drying up and coiling. The ADX>5 floor and ATR>0 keep out dead/data-missing tickers. Direction is unknown — enter on the breakout candle with volume confirmation.

How it fires

adx < 20 + adx > 5 + relative_volume < 0.8 + atr_14 > 0 + atr_14 < price * 0.025.

When to take this trade

HorizonSwing
Scanner timeframe1d
Confirm entry on1h / 4h
Typical holdwatch until breakout, then 2–8 days
Max hold / time-stopdrop from watch if the coil persists without expansion
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Historical edge

Forward-validation pending; treat as a structural setup filter, not a proven edge. Full breakdown in the premium app.

For educational purposes only — user discretion is advised. This screener identifies a statistical edge, not a guaranteed trade. Past performance does not predict future results. Crypto perpetuals are highly leveraged — position sizing, stops, and risk-per-trade discipline are non-negotiable. This is information, not financial advice. Always do your own analysis before entering a trade.

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