Bollinger Squeeze

In TradingView, search for 'Squeeze Momentum Indicator' or 'TTM Squeeze'. In ThinkorSwim, use the TTM_Squeeze study. Most platforms have versions available. You'll see dots (red/green) and a momentum histogram.

No! Red dots mean the squeeze is forming - wait. Only trade when green dots appear (squeeze fires) and momentum confirms direction. Red dots = wait; Green dots = potential trade.

Daily charts are best for most traders. Weekly is good for larger moves (position trading). Hourly can work for more active trading but has more noise. Start with daily charts.

Typically 5-15 bars on daily charts (1-3 weeks). Use trailing stops after hitting first target. Exit if no movement after 5-7 bars (failed squeeze). Don't set arbitrary time limits if trade is working.

Yes, squeeze trading is suitable for TFSA. The frequency is moderate (few trades per month), which is acceptable. The swing trading holding periods are appropriate for registered accounts.

The momentum histogram provides the best indication. Positive histogram at fire = bullish breakout likely. Negative = bearish. Also consider trend context (above/below 50 EMA) and prior price pattern.

A squeeze firing with momentum near zero is a weak signal - direction unclear. Either wait for momentum to pick a side or skip the trade. Best signals have clear momentum direction.

Use weekly to identify major setups. When weekly is in squeeze or recently fired, look for daily squeezes in the same direction for entry timing. Weekly squeeze + daily fire = strong signal.

Both can work. Fire bar close is more aggressive; you're in immediately but may have slippage. Next day open gives confirmation but potentially worse price if it gaps. Test what works for you.

Combination approach: Take 50% at 1.5-2x risk (lock in profit), then trail the rest using BB middle band or swing lows. This captures big moves while securing some profit.

Test: BB period (15-25), std dev (1.5-2.5), KC ATR mult (1.0-2.0), min duration (4-10). Use walk-forward validation. Focus on profit factor and win rate across market regimes, not just one metric.

Track: 1) BB inside KC status, 2) Squeeze duration, 3) Momentum direction, 4) Trend alignment, 5) Fire status. Alert on: forming squeeze, squeeze fire, momentum cross. Rank by duration and trend alignment.

Common failures: weak momentum at fire (near zero), very short squeeze (< 6 bars), counter-trend signal, divergence between momentum and price, sector/market headwinds. Filter for quality to reduce failures.

When multiple stocks in a sector squeeze simultaneously, it suggests sector rotation is coming. Trade the sector ETF for broad exposure or pick the strongest individual name. Avoid overexposure to one sector.

Base position for standard squeeze (6-8 bars, trend aligned). Increase 10-25% for extended squeeze (15+ bars) or multiple timeframe alignment. Decrease 25-50% for weak signals (short duration, no trend filter).