FeraTrading Compression Flow v1

A directional compression breakout filter that visualizes high-probability breakout potential through dynamic range bands and momentum-based bias coloring.

🧠 Overview:
The FeraTrading Compression Flow v1 identifies moments in the market where volatility compresses and momentum builds beneath the surface. It waits for price to coil tightly, then detects when conditions are primed for a directional release.

This is done by comparing short-term vs. long-term range size, detecting momentum alignment using EMAs, and confirming breakout potential through candle body strength. When these elements align, the script activates a bias and reflects it visually on the chart through colored bands. It uses relative volatility, burst confirmation, and momentum filters, making it more selective and directional than typical low-volatility compression detectors.

⚙️ How It Works:
The indicator calculates volatility compression by comparing recent candle ranges (short-term vs. long-term).

It then looks for a range expansion following compression, along with:

EMA and ATR alignment

Strong candle bodies (real momentum)

If all conditions are met:

The bands change color to green (bullish) or red (bearish).

The upper/lower bands expand to visualize the move.

This allows you to visually track the transition from quiet to active phases, filtering out random movement and noise.

🎨 Visual Behavior:
Upper and Lower Bands: Expand and contract dynamically based on volatility and price structure

Green Bands: Bullish compression breakout logic has triggered

Red Bands: Bearish compression breakout logic has triggered

Bands remain colored for a short period following the signal to keep the bias visible

⚙️ Inputs:
Input Multiplier: Adjusts how strict the compression logic is (lower = tighter compression required)

SMA Length: Sets the smoothing window for band calculation

📷 Visual Examples
1. Compression Zone Detected (tight bands)



2. Bullish Breakout Condition Triggered (Green Bands)



3. Bearish Breakout Condition Triggered (Red Bands)



4. Band Expansion During Momentum Push



🔎 Use Case Summary:
This indicator is ideal for identifying breakout momentum following low-volatility compression phases. It works well on 5-minute to hourly timeframes and is best observed during active market sessions when clean price expansion is most likely.

It serves as a visual confirmation tool and complements other directional or volume-based systems.