Compression Into Level
By LuxAlgoMay 4, 2026
Compression Into Level is the definitive clean detector for compression into a 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 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.
The Library is free. Quant makes it yours.
Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.
