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Four signals from different domains describe compression: a Bollinger squeeze is present, trend strength is present, on-balance volume shows accumulation, and revenue continues growing. Together these describe stored energy in the price structure.
State
Coiled spring
Emergence
A Bollinger squeeze is present while trend strength, volume accumulation, and revenue growth all align. The price structure shows stored energy—tightening range with directional pressure—while the business continues to grow. This describes a state of compression with fundamental support.
Limits
This story identifies compression, not direction. It does not predict which way the release will go, guarantee a breakout will occur, or assess timing. Volatility compression can resolve in either direction or persist indefinitely.
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Explanation
Each signal represents an independent observation: Bollinger Squeeze detects when Bollinger Bands compress inside Keltner Channels. A high reading indicates the price is coiling—moving in a narrowing range. Trend Strength measures directional conviction. Elevated readings during a squeeze indicate directional pressure building within the compression. On-Balance Volume tracks cumulative volume flow. Positive readings indicate accumulation is happening even as the price range tightens. Revenue Growing 3y provides the fundamental anchor. The business is expanding, which grounds the technical compression in business reality. When all four align, they describe a stock where price is compressed but volume, trend, and fundamentals all suggest directional energy is building.
Interpretation
This story identifies a structural state, not a prediction. It does not indicate breakout direction, guarantee resolution timing, or assess whether the fundamental growth justifies the current price level. Springs can uncoil in either direction.
Required Signals
Trend Strength
Combined moving average separation and net price displacement