How does Coiled Spring work?
Quick answerIt scores how tightly a stock is coiling, a tension of 0 to 100 from twenty checks. Armed at 60 or more, the spring snaps on a candle with volume over 1.4× average that closes in the top 30% of its range, above the high of the 15 candles before it: a SPRING UP.
The details
The tension
Twenty checks, 5 points each: the moving averages pinching together, the Bollinger Bands inside the Keltner Channels, a shrinking ATR and range, RSI near 50, a flat MACD, a low ADX, quiet volume and small inside candles. It is the panel under the chart: blue to cyan, white once armed (60+ in one of the last three candles).
The snap
An armed spring snaps on a candle with volume over 1.4× its 10-candle average that closes in the top 30% of its range and above the 15-candle high: the SPRING UP, a neon green triangle. Then it rests for 15 candles.
What is called: the daily ★★★★+ springs.
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