Coiled Spring

It is the opposite of the Destructive Volatility. The stock is resting, not breaking down.

Before the coil, the stock has usually already shown strength through an advance, breakout, or strong recovery. This is NVDA before a 90% or ~170% (if you did not sell a pullback) leg.

During the coiled-spring phase, you typically observe:

• price moves sideways or slightly upward

• price still spends time near the upper part of its recent range

• selling attempts produce less downside progress

• important support and moving averages hold

• price repeatedly approaches resistance without suffering a major rejection

• volume often declines as the range tightens

• Moving averages compress but remain positive

• RS remains green or neutral. No sustained periods of weak RS.

• Volatility regime remains low or normal.