Screener › Phase 6: Volatility & Breakout (The 'Explosion' Scanners) › Volatility Compression (0.55 Ratio)

Volatility Compression (0.55 Ratio)

Volatility Screeners
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Volatility: Price Compression Detection (Relaxed NR Pattern)\n\nSTRATEGY DESCRIPTION:\nDetects when today's price range is significantly smaller than the average of the last 5 days (compression ratio < 0.55).\n\nCORE LOGIC (Step by Step):\n\nSTEP 1: Get Today's Range\ntoday_range = Today's High - Today's Low\n\nSTEP 2: Get Previous 5 Days Ranges\nprev_ranges = [range_day1, range_day2, range_day3, range_day4, range_day5]\n\nSTEP 3: Calculate Average Range\navg_range = (sum(prev_ranges) + today_range) / 6\n\nSTEP 4: Calculate Compression Ratio\ncompression_ratio = today_range / avg_range\n\nSTEP 5: Check Condition\nIF compression_ratio < 0.55:\n → VOLATILITY COMPRESSION DETECTED!\n\nSTEP 6: Determine Bias\nnear_high = current_price / recent_high > 0.97\nnear_low = current_price / recent_low < 1.03\n\nIF near_high: bias = "UPSIDE_BIAS"\nELIF near_low: bias = "DOWNSIDE_BIAS"\nELSE: bias = "NEUTRAL_BIAS"\n\nCompression Strength:\n- compression_ratio < 0.6: "EXTREME_COMPRESSION"\n- compression_ratio < 0.7: "STRONG_COMPRESSION"\n- ELSE: "MODERATE_COMPRESSION"\n\n[CHANGED: Compression threshold tightened from 0.8 to 0.55]
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