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Compression Into Level

By LuxAlgoMay 4, 2026

Compression Into Level is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

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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

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Original indicatorBuilt in-house by LuxAlgo

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