Glossary/ Charts
Charts
Compression
Successive candle ranges narrowing. It says participants are disagreeing less, which usually precedes a larger move — and says nothing about the direction of it.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Range compression — What narrowing ranges say, and what they do not say.
- The trade after the loss — The most expensive trade most people take.