Continuation · Variable · Medium reliability
Coil Pattern Explained
Swings keep tightening, like a spring being compressed.
What it looks like
Tightening consolidation after a trend move — volatility compresses like a spring before an expansion breakout.
Works best with trend and volume context.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Find a tightening range after a trend move.
- Check that each swing is smaller than the one before.
- Watch for a close outside the tight range. Direction is not known before that.
When the read is wrong
Invalid if price breaks out and quickly falls back inside the coil.
Common mistakes
- Guessing the direction before the break. The tightening only tells you volatility is low.
- Trusting the first poke outside. Tight ranges often produce false breaks.
Questions and answers
What does a coil show?
Volatility shrinking. Quiet periods are often followed by bigger moves, but the coil does not say which way.
Is a coil the same as a triangle?
They overlap. A coil is the general idea of tightening price, and a symmetrical triangle is one common form of it.
Ask ChartNox AI about Coil Pattern
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a Coil Pattern on a chart, step by step?
- What usually invalidates a Coil Pattern pattern?
- What mistakes do beginners make with Coil Pattern?