Bollinger Squeeze

You need: 1) Bollinger Bands (20, 2), 2) Keltner Channels (20, 1.5), 3) Momentum oscillator (12-period). Many platforms offer 'TTM Squeeze' as a single indicator that combines all three.

Squeezes vary: Short (3-5 bars), Medium (6-10 bars), Long (11+ bars). Longer squeezes often produce bigger moves. Average duration is 6-8 bars on daily charts.

If momentum is near zero, there's no clear directional bias. Wait for momentum to clearly become positive or negative before trading. Unclear momentum often leads to false signals.

Yes, but daily is most common. Use longer timeframes (weekly) for major moves, shorter (4-hour) for active trading. Shorter timeframes have more noise and false signals.

Bollinger Bands use standard deviation (more reactive to price). Keltner Channels use ATR (more stable). BB expand/contract faster than KC, allowing squeeze detection when BB moves inside KC.

High-quality: Long duration (10+ bars), tight compression (BB well inside KC), strong momentum direction, volume declining during squeeze then spiking on release, alignment with larger trend.

Squeeze intensity measures how tight BB is inside KC. Formula: (KC Width - BB Width) / KC Width × 100. Higher intensity (20%+) indicates more compression and potentially more explosive release.

Wait for: 1) Candle close confirming release, 2) Volume spike on release, 3) Clear momentum direction, 4) Trend alignment. If squeeze immediately re-squeezes, exit quickly.

Use wider stops (2× ATR) in: 1) Volatile markets (high VIX), 2) Volatile stocks, 3) Longer-duration squeezes. Tighter stops get triggered by normal volatility expansion.

Counter-trend squeeze trades have lower probability. If taking them: 1) Require longer squeeze duration, 2) Require stronger momentum, 3) Use smaller position size, 4) Take profits quickly.

Bullish divergence: Price lower lows + Momentum higher lows during squeeze = Bullish release likely. Bearish divergence: Price higher highs + Momentum lower highs = Bearish release likely. Divergence predicts direction.

Accumulation: High volume at lows before squeeze = Institutional buying = Bullish. Distribution: High volume at highs before squeeze = Institutional selling = Bearish. Compare volume pattern to price location.

Long straddle/strangle during squeeze (before release) - profits from volatility expansion. Long calls/puts on release for directional plays. Vega benefits when IV rises during release.

False release (re-squeezes): Exit immediately; Wait for true release. Momentum reversal: Exit or reverse position. Weak follow-through: Exit after 3-5 bars if < 1× ATR move.

Bull market: Focus on long squeezes; Aggressive targets. Bear market: Focus on short squeezes. Ranging: Higher filters; Smaller size. Volatile: Wider stops; Smaller size. Low vol: Only long-duration squeezes.