Week 1. A mid-cap semiconductor stock ran from $68 to $84 on a strong earnings report. It's now consolidating between $80 and $86. Daily volume is near its 20-day average. Bollinger Bands are wide from the recent move. CoilScore: 18. No compression yet.
Week 2. The range narrows to $81 to $84.50. ATR has dropped from $3.20 to $2.10 over 8 sessions. Bollinger Band width hits the 25th percentile. Volume is at 78% of the 20-day average. CoilScore: 42. Mild compression forming.
Week 3. Range compresses to $82 to $83.50 ($1.50 total). BB width is at the 8th percentile of the last 60 sessions. ATR is now $1.20, down 62% from two weeks ago. Volume has fallen to 55% of average. The 5-day range is 35% of the 20-day range. CoilScore: 76. All four inputs are converging.
Day 16. An analyst upgrades the semiconductor sector. Social mentions spike 280% overnight. The stock gaps to $86 on 3.4x average volume. By end of day it's at $91, a 10% move from the coil's midpoint. The compressed spring released. Traders who spotted the 76 CoilScore had it on their radar. Everyone else found out from the news headline.