$LIF - *Educational Post*: Example of 10x ATR% Compression Without a Pullback, but at Higher Price. Many believe a 10x ATR% extension in a stock rally requires a significant price pullback (y-axis on chart) for ATR% compression. However, time (x-axis on chart) can also compress the ATR% multiple as the 50-day MA catches up while price drift without significant singular directional price action. $LIF reached 10x ATR% at $62 on May 13. After two months of sideways consolidation at $64, it’s now only 2.3x ATR% from the 50-day MA, compressing by almost 80% and resembling a Darvas box range consolidation pattern.

@jfsrevg Thanks for sharing, Jeff. Super insightful as usual. I feel like I need to go back and read all your posts..