The Coiled Spring Setup I Can't Ignore

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"When you see compression building on multiple levels like this, you're looking at coiled springs inside coiled springs. I really like that."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Look, I'm always good for saying I'm patient with my setups, and then I spot something like ADI and think "goodness gracious, how do I not take this trade?"

That's exactly what happened this week - ADI showing me everything I want to see in a squeeze setup. And I mean everything.

What Makes a Squeeze Worth Getting After

Here's the thing about squeezes - most people don't really understand what they're looking at. They see some indicator turning red and think "oh, squeeze time."

A squeeze happens when volatility gets compressed into a tight range. Think coiled spring - the tighter it gets wound, the more explosive the eventual release.

I'm watching Bollinger Bands squeeze inside Keltner Channels. When those bands contract inside the channels, boom - squeeze signal.

Low volatility periods are always followed by high volatility periods. Always. The question isn't if it'll move - it's when and which direction. That's where the art comes in.

Why ADI Has Me All Kinds of Excited

 

Multiple Timeframe Compression

Gang, this thing is showing squeeze signals across daily charts with squeezes all over the place.

When you see compression building on multiple levels like this, you're looking at coiled springs inside coiled springs. I really like that.

Clean EMA Structure

The exponential moving averages are stacked beautifully on both daily and weekly timeframes. When trend structure is this clean, and this thing eventually moves, it's got room to really run.

Perfect Technical Confluence

  • Price sitting pretty at 21 EMA support
  • Right at the point of control
  • Multiple technical levels all converging at the same price

Look, when everything lines up like this, you don't overthink it. You execute.

Four-Dollar ATR Here's what gets me excited - plenty of room to move when this squeeze releases. The average true range tells me this stock can move big when volatility comes back. And volatility always comes back.

The Multiple Timeframe Edge That Most Miss

When you see squeezes stacking across different timeframes, you're identifying compressed volatility on multiple levels. The daily squeeze tells me the intermediate-term move is building. Everything here for me looks really solid.

This isn't about predicting direction - that's a fool's game. This is about positioning for when volatility expansion happens. And trust me, it's gonna happen.

How I'm Getting After This Setup

Looking at October options for this play. With squeezes, you never know exactly when volatility expansion hits. Could be next week, could be next month. That's why I need time.

The compressed volatility means options are relatively cheap right now. When the squeeze releases and volatility expands, those same options become much more valuable - even with modest stock movement.

I've seen this movie before. Many times.

Your Action Plan

The beauty of squeeze trading is you're not trying to be Nostradamus. You're positioning for when volatility returns to normal levels.

Most traders wait for the breakout confirmation. "Oh look, it's moving now!" By then, the easy money is walking out the door. Squeeze setups let you get positioned before the crowd realizes what's happening.

When you find stacked squeezes at key technical levels with proper EMA structure, the setup does the heavy lifting. You just need patience for the compression to release.

ADI gives me that perfect storm - multiple timeframe compression, clean trend structure, and technical confluence all wrapped up with a bow.

Really, really solid setup here, gang.

Nothing to really do but give it a shot.

If you want to follow along on how I'm trading it and others, click here to learn more about Daily Profits Live.

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