Volatility

Range Compression Ratio Calculator

Enter the current period's range (high minus low) and the average range over your lookback period to get a compression ratio. A ratio well below 1.0 flags a tightening, potentially pre-breakout range; well above 1.0 flags an expansion that may be overextended.

Current Period Range (high − low)

Average Range Over Lookback

Average of the high-minus-low range over your last N periods (e.g. 20-day average range).

Compression ratio···

Reading···

Educational tool only, not financial advice. A compressed range is a probability flag, not a guarantee of an imminent breakout. Check it against your own plan and risk rules before you trade it.

Built by Jason Parker, founder of Trading Ranges.