Video lesson · ChartRange Compression: how to read and use it
Volatility squeeze before a move — candle range squeezes and expansions. The lesson takes 2:13; its full text is below the video.
Narrated in Russian. English subtitles are on by default.
Range Compression in short
What does Range Compression show?
Bars under the chart show how wide each candle is against a normal candle; the line at 1 is a normal range. Bar color matches the candle. Blue bands mark a squeeze, when several candles in a row are clearly narrower than usual.
How to read Range Compression?
- A bar above 1 is a wider-than-usual candle, below 1 a narrower one.
- A blue band means the market has compressed and is standing still.
- Very tall bars are candles twice the normal range or more.
How to use Range Compression?
- A squeeze shows calm but doesn't tell you which way the breakout will go; look for direction in the book and the flows.
- After a blue band, expect the range to expand and avoid stops that are too tight.
- Combine with Wall Pressure: book imbalance during a squeeze shows which side is pressing.
What do you often see on Range Compression?
- After a squeeze candle ranges usually expand: quiet gives way to movement.
- A squeeze does not tell the breakout side: tight ranges break up and down about equally.
- A squeeze can last a long time; the first expansion often takes out tight stops.
- Look for the breakout side in the book and flows, for example Wall Pressure.
Where can I find Range Compression?
In the Liqwall terminal: the Indicators button, the Chart section, Range Compression. The “Open in the terminal” button on this page opens the chart with it already added.
Lesson text
0:00What Range Compression is
The market went quiet. This is the calm before the move. Range Compression shows when candles squeeze and when the market starts to expand again.
0:11How to add Range Compression to the chart
Open the indicator list, go to the Chart section and select Range Compression. The indicator appears in a separate panel under the chart.
0:19How to read Range Compression
Each bar shows the candle's range compared with what is normal for this coin. The line at one is the normal range, above it the candle is wider than normal, below it narrower. The bar's color matches the candle's color. A blue band marks a squeeze — several candles in a row noticeably narrower than normal. Very tall bars are candles twice as wide as normal or more.
0:46Range Compression settings
In the settings, Period sets how many candles define the normal range. Squeeze level — how narrow the candles must be for a blue band to appear.
0:57An example on a real chart
An example. On August 15 and 16 bitcoin stood near 63 thousand dollars. The candles were 2 to 4 times narrower than normal, and a long blue band lay under them. Three days later the calm was over.
On August 19 the 4-hour candle from 3 p.m. turned out 11 times wider than normal. At six in the evening, within an hour, the price ran from 65,900 to 74,000 dollars. On August 21 bitcoin was already at 79,500.
1:34What to pair Range Compression with
Range Compression tells you when to expect a move. Other indicators will suggest the side. Wall Pressure from the Signals section shows which side the order book is pressing from during the squeeze. Price ROC confirms the breakout — candles expanding together with a bright speed bar mean a move with force. Liquidity Map from the Order Book section will show the walls above and below the narrow range.
2:01The takeaway
The squeeze tells you how soon, the order book shows where. Range Compression is in the Liqwall terminal, in the Chart section.
Add the indicator to the chart and look at it on your own coin.Free account — no card needed.