ID / NR4 / NR7 / IDNR4 / IDNR7 + LVQ/LVY/LVE + 3TC + Alerts v6

This indicator highlights price and volume compression structures that often precede volatility expansion, breakouts, and momentum continuation.

Rather than acting as a buy/sell signal, it is designed as a setup identification tool to help traders focus on moments when the market is transitioning from quiet, compressed conditions to potential directional movement.

What the Indicator Identifies

Price Compression Patterns

Inside Day (ID) – price trades fully within the prior candle’s range

NR4 / NR7 – the narrowest range in recent bars

IDNR4 / IDNR7 – deeper compression where Inside Day and Narrow Range overlap

3TC (Three Tight Candles) – early multi-bar range contraction

These patterns represent temporary balance and reduced volatility, conditions frequently seen before expansion.

Volume Contraction

LVQ – lowest volume in recent quarter

LVY – lowest volume in recent year

LVE – lowest volume in available history

Low volume during tight price action often signals lack of selling pressure and supply exhaustion, especially in leading stocks.

Why This Is Useful

Many traders look at Inside Days or NR patterns in isolation.
This indicator adds value by:

Differentiating normal consolidation from meaningful volatility contraction

Highlighting only qualifying candles, keeping charts clean

Combining price structure and volume behavior into one visual framework

Making it easier to scan and shortlist candidates instead of reacting to every pattern

The focus is on market readiness, not prediction.

How Traders Commonly Use It

This indicator is used to:

Prepare for breakouts or ORB setups

Identify momentum continuation opportunities

Spot volatility contraction pivots (VCP-style behavior)

Build watchlists of stocks entering compression

Avoid chasing extended or noisy price action

Best suited for Daily, 4H, and 1H timeframes, though it can also be applied intraday.

Design Philosophy

Only candles meeting defined compression criteria are highlighted

All other candles retain the user’s chart theme

Labels are minimal and informational

No dependency on other indicators

This keeps the chart readable and focused on structure.

Notes

This is not a trading system

No future data is used (non-repainting)

Best used with trend context, risk management, and execution rules