CoilScore Definition
The CoilScore is a proprietary component of Banana Farmer's Ripeness Score that quantifies how compressed a stock's volatility is. It combines Bollinger Band width, ATR contraction rate, multi-timeframe range compression, and volume dry-up into a single 0-to-100 reading. Higher scores mean tighter compression and a bigger potential breakout.
How It Works
Volatility compression is one of the most reliable precursors to big price moves. When a stock's trading range narrows, volume dries up, and Bollinger Bands squeeze tight, energy is building. The CoilScore captures this by measuring four inputs: how tight the Bollinger Bands are vs. the last 60 days, how fast ATR (Average True Range) is declining, the ratio of 5-day range to 20-day range, and whether volume is dropping below its recent average.
When all four inputs converge, the CoilScore spikes. It doesn't predict when or which direction the breakout happens. It tells you that conditions for a large move are in place. For a complete walkthrough, see the full CoilScore guide or the scoring methodology.
Example
A semiconductor stock has been trading in a $2 range for 12 days after a strong earnings report. Bollinger Bands are at their tightest in 90 days. ATR has dropped 40% from the post-earnings spike. Volume is running at 60% of its 20-day average. The CoilScore reads 81. Three days later, a sector catalyst hits and the stock breaks out of the range with a 6% gap on 3x normal volume. The compression resolved exactly as the CoilScore suggested it would.
Hypothetical example for educational purposes. Past patterns don't guarantee future results.
Related Terms
Frequently Asked Questions
What CoilScore level indicates a breakout is coming?
CoilScores above 70 signal meaningful compression. The 70 to 85 range is the sweet spot: tight enough that a breakout is building but it hasn't fired yet. Scores above 85 represent extreme compression that typically resolves within 1 to 5 trading days. Below 40 means normal volatility with no compression pattern. The CoilScore updates every 15 minutes alongside the Ripeness Score.
Does the CoilScore tell you which direction the stock will break?
No. The CoilScore measures compression intensity, not direction. A tightly coiled stock can break up or down. To gauge direction, look at the broader trend context: stocks coiling above a rising 50-day moving average tend to break upward about 65% of the time. Banana Farmer's Ripeness Score layers momentum and sentiment signals on top of compression data to give a more complete picture.
Can the CoilScore be used for crypto?
Yes. Banana Farmer calculates CoilScores for all 125 tracked crypto assets alongside 9,287 stocks. Crypto assets tend to coil for shorter periods (3 to 7 days vs. 5 to 20 for stocks) and the resulting breakouts are often more violent. The same math applies, but thresholds are calibrated separately for each asset class to account for the difference in baseline volatility.
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