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Nikita (SEBI RA)

27th Oct Β· SEBI-Registered Analyst

Multi-Candle Compression Break – Momentum Release Setup πŸš€

πŸ“Š Multi-Candle Compression happens when candles keep getting smaller β€” showing volatility squeeze before a big directional move. βœ… Formation: 3 or more candles with consecutively lower highs & higher lows (triangle-like structure). Range tightens β†’ traders indecisive. Breakout candle with high volume = momentum explosion. βœ… Meaning: Energy builds β†’ breakout follows β†’ trend acceleration. πŸ“Œ Example: Stock compresses between β‚Ή480–₹470 for 5 sessions with small candles, then a big green candle closes β‚Ή490 on strong volume β†’ Compression Breakout β†’ strong upside follow-through. 🧠 Tip: Use Bollinger Bands or ATR to confirm volatility contraction before the breakout.

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