Bollinger Squeeze

Most platforms have it built-in or as a free add-on. In TradingView, search 'Squeeze Momentum Indicator' or 'TTM Squeeze'. It shows colored dots (red = squeeze on, green = squeeze off) and a momentum histogram.

Squeeze trades are typically held 3-15 days depending on the move. Use trailing stops rather than fixed targets. The goal is to capture the entire volatility expansion phase, which can last 1-3 weeks for strong squeezes.

Extended squeezes (20+ bars) are rare but powerful. Stay patient - don't force entry. The longer the squeeze, the bigger the eventual move. Keep watching and enter on the release whenever it comes.

Yes, but daily is most reliable for swing trades. Weekly for longer-term, 4-hour for shorter-term. Avoid very short timeframes (1-hour or less) as they generate too many false signals.

If momentum is unclear (oscillating around zero), wait. The squeeze will eventually tip momentum one way. Entering without clear momentum direction is gambling. Be patient for a clear signal.

Use multiple filters: Volume > 1.5× average on release, clear (not weak) momentum, squeeze duration 6+ bars, preferably multi-timeframe alignment. Score each factor and only trade high-score setups.

No. Filter by quality: duration (7+ bars preferred), volume (> 1.5× on release), momentum (clear direction), and optionally sector/index alignment. Taking only quality setups improves win rate from ~50% to ~62%.

This happens occasionally. If stopped out on a false release and a new squeeze forms, wait for the next genuine release. The second setup is often stronger because weak hands have been shaken out.

Squeezes often form before earnings as traders wait for news. If holding through earnings, expect large moves either direction. Many traders exit before earnings or use options to manage risk.

Squeeze works well with: RSI (for overbought/oversold context), VWAP (for intraday bias), support/resistance levels (for targets/stops), and sector analysis (for confirmation). Don't over-complicate - 1-2 additional filters is enough.

Start with standard (BB 20/2.0, KC 20/1.5). Test variations (±5 period, ±0.2 multiplier) on historical data. Optimize per instrument class (indices, high-beta stocks, low-beta stocks). Validate on out-of-sample data to avoid over-fitting.

During squeeze, IV is typically low (options cheap). Buy ATM or slight OTM calls/puts for directional leverage, or straddles if direction unclear. On release, you benefit from both delta (direction) and vega (IV expansion).

Target 8-10 positions across sectors, max 3 per sector, correlation < 0.6 between positions. Total risk 10-15% of account. Stagger entries naturally as releases occur. This diversifies while maintaining squeeze exposure.

With proper filtering: Win rate ~58%, average winner ~3.2× risk, average loser ~1× risk. Expectancy = (0.58 × 3.2) - (0.42 × 1.0) = 1.44R per trade. Positive expectancy supports position sizing decisions.

Build scanner that: calculates BB and KC for universe, identifies squeeze states, measures duration, calculates momentum, flags releases with volume. Alert on qualified signals. Execute manually or auto-execute with position sizing logic.