In The Currency Jungle

This article is the first part in our Quarters Theory. In this installment, we focus on constructing the quarters using our "quarters drawer" script. By automating the drawing of these crucial levels, we offer a practical starting point for visualizing key reversal and continuation zones. As we advance in this theory, we will develop even more robust tools to support signal generation and advanced market analysis.

more...

Mark Minervini describes variations of this behavior through the Volatility Contraction Pattern (VCP). Other traders refer to it as “tight price action” or a “coiled spring,” while John Bollinger formalized part of the idea with the well-known Band Squeeze. Regardless of terminology, the behavior itself appears across markets—forex, indices, equities, and crypto—because price rarely transitions directly from trend to trend without an intermediate balancing phase.

The practical challenge has always been the same: how do you objectively distinguish between a high-quality compression phase—characterized by genuine absorption and repeated boundary interaction—and a low-quality sideways drift that offers little structural information?

more...