Silver Bollinger Squeeze

Look for Bollinger Bands that have narrowed significantly compared to recent history. Use the Band Width indicator - when it's in the lowest 20% of the last 6 months, you have a squeeze. Visually, the bands look 'pinched' together.

The direction is determined by the breakout. You don't know in advance which way it will break. Wait for price to close outside one of the Bollinger Bands with volume, then trade in that direction.

Typically 5-15 days for daily chart squeezes. Don't enter on squeez day 1-2 - wait for at least 5 days of squeeze to build energy. Longer squeezes (10+ days) often produce larger breakout moves.

A false breakout occurs when price breaks outside the Bollinger Bands but quickly reverses back inside. About 30-40% of squeeze breakouts are false. That's why stop losses are essential - They protect you when the breakout fails.

The standard stop is at the middle Bollinger Band (20-period SMA). For a long trade, if price falls back to the middle band, the breakout has failed. This typically gives you a 2-4% risk depending on the squeeze width.

TTM Squeeze combines Bollinger Bands with Keltner Channels for more precise squeeze identification. Squeeze is 'on' when BB is inside KC, and 'fires' when BB expands outside. It also includes a momentum histogram for direction. It's more precise than basic BB squeeze and recommended once you understand the basics.

Use multiple filters: Trade in direction of weekly trend (highest impact), require volume > 1.5x average, check that gold is moving the same direction, ensure RSI/MACD confirms direction. The more filters align, the higher probability.

Start with daily squeezes - They occur more frequently (4-8 per year vs 2-4 for weekly) and are easier to manage. Weekly squeezes are higher conviction and produce larger moves (10-15%+), but require more patience and larger capital for proper position sizing.

Recommended approach: Take 50% profit at 1.5x risk, move stop to breakeven. Take 25% at 2.5x risk. Trail the remaining 25% with the 20 SMA. This locks in profit while allowing for larger moves.

If squeeze persists for 10+ days without breakout, keep waiting - It often means a bigger move is building. If bands start widening without a clear breakout, reassess. If the squeeze reforms after a weak breakout attempt, consider it a failed setup and wait for next squeeze.

Use BB Width percentile over 6 months. Below 20th percentile = moderate squeeze, below 10th = strong, below 5th = extreme. You can also use Historical Volatility percentile and ATR percentile. When multiple metrics all show extreme readings, conviction is highest.

Long straddle (buy ATM call + ATM put) works well because direction is unknown. Buy when IV is low (during squeeze), profit when IV expands on breakout. Use 30-45 day expiration to give time for breakout. Need price to move more than the combined premium to profit.

Check gold for confirmation - If gold is also squeezing/breaking same direction, probability increases. Check dollar - Weak dollar supports silver longs. When multiple markets (silver, gold, dollar) are all in squeeze simultaneously, a major macro move is likely coming.

Calculate BB Width daily and express as 6-month percentile. Alert when below threshold (e.g., 10%). Add breakout detection: Close outside band + Volume > 1.5x average. Can be done in TradingView with Pine Script or Python with data API. Start semi-automated (alerts + manual entry) before full automation.

Be careful of correlated risk - If you have a silver squeeze trade on, adding another silver trade doubles your exposure to silver moves. Limit total risk exposure. If you want multiple trades, diversify across uncorrelated markets or use spread trades (silver vs gold) to reduce directional risk.