Compression Detector NinjaTrader 8 Indicator - Prepare for Breakouts

Compression Detector identifies periods of volatility compression before potential breakouts. It is a blend of 3 signals combined into one, each measures compression separately through ATR, bar range, and directional efficiency before being blended together. The weighted mix is scaled nonlinearly and is normalized across a configurable lookback. Creating a robust and smooth signal that adapts to current market conditions. Volatility compression increases probability of volatility expansion but does not guarantee it

Disclaimer

This indicator is provided for analytical and educational purposes only and does not constitute financial, investment, or trading advice. The developer is not a licensed financial advisor or broker. Trading financial markets involves substantial risk and may not be suitable for all individuals. Past performance, whether real or simulated, does not guarantee future results.

No representation is made that the use of this indicator will generate profits or prevent losses. The indicator is a market analysis tool and should only be used as part of a broader trading methodology.

By purchasing or using this product, you acknowledge that you are solely responsible for all trading decisions and outcomes resulting from its use. The developer shall not be liable for any financial losses or damages arising from the use or misuse of this software.

Does not repaint, is OnBarClose

Requires a warmup of 200 bars on default settings, attaching to a chart with multiple days loaded is recommended

Product type: You will receive a dll file ready for use, it does not require a license key but contact information will be provided should the need for set up support arise.

Limitations

Like all compression indicators, it has limitations.

No directional prediction

• It detects compression, not breakout direction.

Trending compressions

• Some markets trend slowly while volatility contracts.

Lookback dependence

• Normalization window affects responsiveness.

Limitation list is not exhaustive