# Compression Into Level

Compression Into Level is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Detects compression into support or resistance: at least three shrinking swings pressing into a level proven by two or more tests, drawn as a tightening wedge with the consumed bases dotted along the approach. A live label grades the squeeze, and resolution prints as a Break through the level or a Reject targeting the compression origin. Built for breakout and reversal traders alike.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 4, 2026.
- Access: free.
- Concepts: [Compression Into Level](https://www.luxalgo.com/library/concept/compression-into-level/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=wun8growjw1o9gqyz0wnaj08
- Page: https://www.luxalgo.com/library/indicator/compression-into-level/

**Compression Into Level** is the definitive clean detector for [compression into a level](https://www.luxalgo.com/library/concept/compression-into-level/), the stair-stepping approach where price grinds at proven support or resistance in progressively shallower swings. It clusters swing touches into a level zone, demands a shrinking pullback series starting at least 1 ATR outside it, then draws the tightening wedge, dots the consumed bases, and grades the squeeze live until price resolves it.

## How to Trade the Compression Into Level?

- **Break**: a close through the level's outer edge, the resolution that runs on the stops resting beyond the zone.
- **Reject**: a close back through the most recent stair-step swing; the failure prints a dotted line at the compression origin: the reference target, with little consumed structure left before it.
- **Pressure grade**: a live High / Moderate / Low reading over the zone; hover it for the measured contraction, test count, swing count and both resolution prices.

Six alerts cover detection and both resolutions.

## Compression Into Level Settings

- **Swing Length** (default 5): bars either side confirming a swing point.
- **Minimum Level Tests** (default 2): swing touches the level needs to count as proven.
- **Minimum Shrinking Swings** (default 3): contracting pullbacks required to call compression.
- **Level Tolerance** (default 0.5): maximum ATR distance between swings clustered into one level.
- **Contraction Ratio** (default 1.0): each pullback must stay under this fraction of the prior one.
- **Minimum Approach Depth** (default 1.0): ATR distance the origin must sit beyond the level.
- Structure toggles show or hide the level zone, wedge, consumed-base dots, failure trigger line, pressure grade, rejection target and resolution markers.

## Frequently Asked Questions

### Isn't this just an ascending triangle?

Into resistance the geometry overlaps, and the [ascending triangle](https://www.luxalgo.com/library/indicator/ascending-descending-symmetrical-triangle/) build covers the named pattern. This detector grades the approach itself and arms explicit triggers in both directions instead of assuming the breakout bias.

### What does the pressure grade actually measure?

Three ingredients, equally weighted: how far the pullback depths contracted from first to last, tests of the level beyond the minimum, and the length of the shrinking-swing chain. Scores of 67 or more read High, 34 or more Moderate.

### Why did a live structure end without a Break or Reject?

When a new stair-step swing prints but stops shrinking against the one before, the squeeze has eased without resolving: the drawing freezes and its label notes the easing. Only a close through the level or the last stair-step swing produces a resolution marker.

## Related indicators

- [Smart Money Concepts (SMC)](https://www.luxalgo.com/library/indicator/smart-money-concepts-smc/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/smart-money-concepts-smc.md
- [Structure & Trend Dashboard](https://www.luxalgo.com/library/indicator/structure-trend-dashboard/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/structure-trend-dashboard.md
- [FVG + Liquidity Sweep + CISD](https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd.md
- [MSS Sweep Fib Retrace](https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace.md
- [HTF CISD Projections](https://www.luxalgo.com/library/indicator/htf-cisd-projections/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/htf-cisd-projections.md
- [HTF Sweep Signals](https://www.luxalgo.com/library/indicator/htf-sweep-signals/) (Swing Failure Pattern): markdown at https://www.luxalgo.com/library/indicator/htf-sweep-signals.md
- [Liquidity Structure & Order Flow](https://www.luxalgo.com/library/indicator/liquidity-structure-order-flow/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/liquidity-structure-order-flow.md
- [Market Structure Break & OB Probability Toolkit](https://www.luxalgo.com/library/indicator/market-structure-break-ob-probability-toolkit/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-break-ob-probability-toolkit.md

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Source: https://www.luxalgo.com/library/indicator/compression-into-level/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
