How to Identify compression in Trading?

[Maxwellrubia]

How to identify a compression

[Ali]

To identify the compression on the chart, look for the areas from where price keeps on consuming supply/demand zones.

Let me give you an example of price-consuming demand zones.
Look at the image below; the price was making a higher high trend, but it was also consuming all the demand zones. As price has consumed all the demand in this area, there is no demand left.

Due to no demand, the market fell sharply during this compression zone.

• No demand = a lot of supply

• No supply = a lot of demand