Multi-Candle Compression Break β Momentum Release Setup π
π Multi-Candle Compression happens when candles keep getting smaller β showing volatility squeeze before a big directional move.
β
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.
β
Meaning: Energy builds β breakout follows β trend acceleration.
π Example: Stock compresses between βΉ480ββΉ470 for 5 sessions with small candles, then a big green candle closes βΉ490 on strong volume β Compression Breakout β strong upside follow-through.
π§ Tip: Use Bollinger Bands or ATR to confirm volatility contraction before the breakout.
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