Definition. Difficulty Ribbon Compression is a market indicator that uses a normalized standard deviation to quantify compression of the Difficulty Ribbon.

Technical. The compression threshold is set here at 0.05.

Interpretation. Low values mark zones of high compression in the ribbon, historically associated with buying opportunities.

This is the Point-in-Time (PiT) variant of Difficulty Ribbon Compression. PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.