Decoded Intelligence Signal
Volatility Compression
intermediate
technical_analysis
Verified: May 27, 2026Lexicon Core Definition
A market condition where price moves become progressively smaller and more consistent over time, reflected in declining ATR, narrowing Bollinger Bands, and low Standard Deviation readings. Volatility compression typically precedes significant directional moves, as constrained energy eventually releases — direction is not predictable from compression alone.
Analysis Breakdown
A market condition where price moves become progressively smaller and more consistent over time, reflected in declining ATR, narrowing Bollinger Bands, and low Standard Deviation readings. Volatility compression typically precedes significant directional moves, as constrained energy eventually releases — direction is not predictable from compression alone. Full explanation coming soon when Journey 14 content is ingested.