Dollar-Yen Compression Coil: A Breakout is Brewing🧠 Why This Matters Right Now
USD/JPY has been tightly range-bound for the past 7 sessions, hugging the underside of 154.50, a historically significant resistance level. With U.S. inflation coming in hotter than expected and the Bank of Japan stepping back from policy tightening, this tug-of-war has compressed price action into a tight coil. A volatility eruption is right around the corner.
🔍 Breakdown of the Strategy
This is a volatility compression breakout setup based on the logic that low volatility precedes expansion. The ingredients:
Bollinger Bands (20, 2) for detecting squeeze zones
ADX (14) under 15 to confirm low trend strength
Price range compressing within 0.5%
Entry Logic:
📈 Long: Close above upper Bollinger Band + ADX > 20
📉 Short: Close below lower Bollinger Band + ADX > 20
Stops & Targets:
Stop Loss: Just inside the opposite Bollinger Band
Take Profit: 2× ATR(14)
🚀 Why This Works in Today’s Market
The policy divergence between the U.S. and Japan is creating a classic fundamental standoff, but the price can't stay neutral for long. Volatility is compressed to its limits. When the breakout comes, it's likely to run fast and clean in the direction of the imbalance.
🤖 Automate It with PineScriptAI
With PineScriptAI, you can instantly:
Detect when Bollinger Band width narrows
Monitor ADX thresholds
Set up conditional breakout logic with smart alerts and backtests
Create a dual-trigger script that catches either direction — no need to guess the breakout side.
⚡ From Trend to Code — Instantly
This isn’t just a chart pattern — it’s a recurring market phenomenon. With PineScriptAI, you can adapt this same logic to GBP/JPY, EUR/JPY, or even gold compressions with zero manual tweaking.
🧭 Final Insight FX:USDJPY
When price coils, energy builds. Don’t just watch it break — code it, trade it, and scale it across markets with PineScriptAI.
Pricecompression
Bitcoin price compressionHi Guys.
Im in 1H timeframe and i think BTC price compressed between two line i drawn on my chart.
Also we can see a weak Divergence between RSI and Price action too.
This will lead the price to the lower line and despite there is a strong support line there , in 24000
the price will bouce back and go approch upper line.
So we can take 2 trades here:
1- Now with SL upper than latest minor peak
2- after reaching lower line and the bounce verified.
The price action around 24000 was very strong because you see two long shadowed candle in this area historically.
After this price compression ends , we shuold analysis again to see what will happen.
But in some extent , I think we break this Triangle upward and go toward 26000 target.
Hope you enjoy , thats just my idea NOT a trading Advice.
Trade on your own strategy but take ideas from others.
THANK YOU ALL
BTC might see 50k levels in near futureI know it's been pretty dull for BTC lately but I see possibility of 50k levels to come soon, confirmation of strong bull trend will be when bottom indicator moves above 0 or yellow line.
One reason for above observation is that lately price action has been compressed and I feel its an indication of big player interest area, do not be surprised if current levels are avg price for the most big players when the price ends up really going to 50k
I can't speak on time required for this but I estimate at least 4-5 months.