Compression → Momentum Expansion (MNQ Futures Example)

Wait 5 sec.

Compression → Momentum Expansion (MNQ Futures Example)Micro E-mini Nasdaq-100 Index FuturesCME_MINI:MNQ1!elite_mgmtMarkets often move through cycles of compression followed by expansion. During compression, volatility contracts and price moves within a tight range. When expansion begins, momentum can increase rapidly and produce strong impulse runs. This chart shows a transition from compression into expansion, which often leads to some of the largest directional moves during the session. The move highlighted here demonstrates how price can shift quickly once expansion begins. I’ve been researching this behavior and built an indicator called Nova BIG Moves to help highlight these transitions in real time. Compression → Expansion → Impulse. Indicator page:  ⁠�