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Proprietary Metric

CoilScore Guide: How We Detect Stocks About to Break Out.

The CoilScore is a proprietary component of Banana Farmer's Ripeness Score that quantifies volatility compression before explosive price moves. It measures how tightly a stock's price range has contracted by combining four signals: Bollinger Band width percentile, ATR contraction rate, multi-timeframe range compression, and volume dry-up. Stocks with high CoilScores are statistically more likely to make large moves in the near term.

Think of it like a spring. The tighter you compress it, the more energy it stores. The CoilScore tells you how compressed the spring is. It doesn't tell you which direction it'll fly when it releases. That's where the other Ripeness Score inputs (momentum, social velocity, crowd flow) come in.

How Is the CoilScore Calculated?

The CoilScore combines four distinct compression measurements into a single 0-100 value. Each input captures a different dimension of volatility contraction. When multiple inputs converge (tight bands AND declining ATR AND low volume), the CoilScore rises rapidly because the evidence for compression is coming from independent sources.

The Four Inputs

1. Bollinger Band Width Percentile

Where the current BB width ranks against the last 60 trading sessions. A stock at the 5th percentile has tighter bands than 95% of recent sessions. This catches the classic “squeeze” pattern that technical traders watch for manually. The 60-day lookback avoids false signals from seasonal volatility shifts.

2. ATR Contraction Rate

How quickly the Average True Range is declining over 10+ sessions. A single quiet day doesn't count. The CoilScore needs a sustained decline in daily range, which signals that both buyers and sellers are running out of conviction at the current price level. The rate of change matters more than the absolute ATR value.

3. Multi-Timeframe Range Compression

The ratio of the 5-day high-low range to the 20-day high-low range. When the recent 5-day range is less than 40% of the 20-day range, the stock is significantly more compressed than its recent norm. This metric catches fast-forming coils (5 to 7 days) that BB width alone might miss because Bollinger Bands have a lookback lag.

4. Volume Dry-Up

Recent trading volume as a percentage of the 20-day average. Volume at 50% to 70% of average during price compression confirms that market participants have stepped back. Nobody's trading because nobody has conviction. This thin market condition is what makes the eventual breakout violent: when new orders hit a thin book, price moves fast.

None of these inputs are exotic. Any trader with a charting platform can check Bollinger Band width, ATR, and volume manually. The CoilScore's value is running all four calculations across 9,287 assets every 15 minutes. You physically can't check that many charts. The algorithm doesn't skip sectors, doesn't get tired, and doesn't develop tunnel vision on yesterday's favorite stock.

What Do CoilScore Ranges Mean?

The CoilScore runs from 0 to 100. Higher means tighter compression. But not every high CoilScore leads to a profitable breakout, and low scores don't mean the stock is bad. Here's what each range typically indicates.

CoilScoreCompression LevelWhat It Means
0-30NoneNormal or expanding volatility. No coiling pattern.
30-50MildSlight range narrowing. Early stages of potential compression.
50-70ModerateClear compression forming. BB width declining, volume softening.
70-85HighSignificant compression. Multiple inputs converging. Spring is loaded.
85-100ExtremeMaximum compression. Breakout is imminent. Razor-thin range.

The 70-85 range is where most experienced traders focus. Below 70, the compression isn't convincing enough. Above 85, you're often buying the coil so late that the breakout could happen within hours and you might not get a clean entry. The sweet spot is catching a stock as it enters the 70-85 zone and then waiting for the breakout with volume confirmation.

CoilScore in Action: A Walkthrough

Here's how a coiling pattern develops and how the CoilScore tracks it in real time. This is a hypothetical example showing the mechanics.

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.

This is a hypothetical scenario for educational purposes. Individual results vary, and past patterns don't guarantee future outcomes.

How Should You Trade a High CoilScore?

A high CoilScore tells you a big move is building. It doesn't tell you the direction, and it doesn't tell you when. Here's how experienced traders approach coiling setups without turning them into gambles.

Step 1: Identify the trend before the coil

If the stock was in an uptrend before it started coiling (price above the 50-day moving average, higher lows on the weekly chart), the breakout resolves upward about 65% of the time. Coils that form after downtrends break lower at a similar rate. The prior trend is your strongest directional clue.

Step 2: Check the Ripeness Score, not just the CoilScore

The CoilScore is one input into the Ripeness Score. A stock with a high CoilScore AND rising social velocity AND positive momentum trend is a much stronger setup than a stock with a high CoilScore alone. The leaderboard ranks by the composite score, which means high-CoilScore stocks that also have other signals converging naturally float to the top.

Step 3: Wait for volume confirmation

Don't buy the coil. Buy the breakout. The coil tells you where to watch. The breakout (price moving outside the compressed range on 2x+ average volume) tells you when to act. Buying the coil itself means sitting in a position that goes nowhere for days while your capital is tied up. Patience is the edge.

Step 4: Set stops based on the compression range

Once a breakout happens, the opposite end of the compression range is your natural stop-loss level. If a stock was coiling between $42 and $44 and breaks above $44, a stop at $41.50 (just below the range) gives you defined risk. If price falls back into the range, the breakout failed and you exit. Simple.

Step 5: Size for the volatility

Breakouts from tight coils can be violent. A stock that was moving $0.50/day suddenly moves $5. Size your position so the stop-loss level represents an acceptable dollar loss. If the stop is $2.50 away and you're comfortable losing $500, your position is 200 shares. The math matters more than your excitement about the setup.

Builder's Perspective

ABM

Aaron Browne-Moore

Founder, Banana Farmer

The CoilScore was the first thing I automated. I'd been manually checking Bollinger Band squeezes on about 40 stocks per night, and it took over an hour. The frustrating part was knowing that hundreds of other stocks were coiling in sectors I never looked at. I'd find out after the breakout, when it was too late.

The math behind the CoilScore isn't complicated. BB width percentile, ATR trend, range ratios, volume comparison. Four numbers. But running those four calculations across 9,287 assets every 15 minutes is something no human can replicate. The algorithm finds coils I never would have seen. That's the whole point: coverage you can't get manually, applied consistently, without bias or fatigue.

The full scoring methodology explains how the CoilScore feeds into the overall Ripeness Score alongside momentum, social velocity, and crowd flow. Over 12,450+ tracked signals, Ripe scores have maintained an 80% five-day win rate with a +4.51% average return. Compression is one of the strongest contributing factors in that track record.

Disclaimer: Past performance does not guarantee future results. The CoilScore measures volatility compression, not future price direction. Stocks can break out in either direction, and some coils resolve with false breakouts. Trading involves risk of loss. All content is educational, not financial advice. See our full risk disclaimer.

Frequently Asked Questions

Common questions about the CoilScore and volatility compression

What is the CoilScore and how is it calculated?

The CoilScore is a proprietary metric inside Banana Farmer's Ripeness Score that quantifies how compressed a stock's price action is. It combines four inputs: Bollinger Band width percentile (how tight the bands are vs. the last 60 days), ATR contraction rate (speed of range shrinkage), multi-timeframe range compression (5-day range vs. 20-day range), and volume dry-up (current volume as a percentage of the 20-day average). Higher CoilScore means tighter compression.

What CoilScore range signals an imminent breakout?

CoilScores above 70 indicate significant compression. Stocks scoring 70 to 85 are in the sweet spot where the range is historically tight but the breakout hasn't happened yet. Scores above 85 mean extreme compression, which often resolves within 1 to 5 trading sessions. Scores below 40 indicate normal volatility with no meaningful compression. The CoilScore alone doesn't predict direction, only that a large move is building.

Does the CoilScore predict which direction the breakout will go?

No. The CoilScore measures compression intensity, not direction. A stock can coil tightly and break in either direction. To estimate direction, look at the trend before the coil formed and at social sentiment data. Stocks coiling above a rising 50-day moving average break upward roughly 65% of the time. Banana Farmer's Ripeness Score layers direction signals (momentum, sentiment) on top of compression data.

How is the CoilScore different from Bollinger Band width?

Bollinger Band width is one input into the CoilScore, but it only measures one dimension of compression. The CoilScore also factors in ATR contraction speed (how fast volatility is declining), multi-timeframe range ratios (5-day vs. 20-day), and volume dry-up. A stock can have tight Bollinger Bands but normal volume and ATR. The CoilScore requires multiple compression signals to converge before assigning a high reading.

Can I use the CoilScore for crypto assets?

Yes. Banana Farmer calculates the CoilScore for all 9,287 tracked stocks and 125 crypto assets. Crypto tends to have shorter coiling periods (3 to 7 days vs. 5 to 20 for stocks) and more violent breakouts. The same compression math applies, but the thresholds are calibrated per asset class. Crypto coils at a 70+ CoilScore tend to resolve faster than stock coils at the same level.

How often does the CoilScore update?

The CoilScore updates every 15 minutes as part of the Ripeness Score refresh cycle. During market hours, each refresh re-evaluates Bollinger Band width, ATR, range compression, and volume for all tracked assets. A stock can transition from moderate compression to high compression within a single trading day if volatility contracts rapidly after a catalyst fades.

About This Guide

Aaron Browne-Moore

Founder, Banana Farmer

9,000+ Assets Analyzed Daily
2+ Years of Signal Data
Educational Only

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