8d • Chart Breakdowns
Compression → Expansion Example
This sequence starts with tight compression.
Price spent time coiling into a narrow range, overlapping candles, and reduced follow-through. That’s usually a sign the market is storing energy, not going dormant.
When structure finally gave way, price expanded quickly out of the range. The initial break moved down, accelerating as stops were triggered and liquidity was taken.
But the key wasn’t the direction — it was the expansion itself.
Once that downside expansion ran out of fuel, price reversed and expanded even harder in the opposite direction. That secondary move was the real release of energy, not the first push.
This is a common pattern in day trading: compression builds energy, the first break clears liquidity, and the true expansion comes after structure resets.
Learning to recognize this sequence is more important than predicting which side breaks first.
No signals.
Just structure and context.
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Compression → Expansion Example
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