Captures volatility breakouts after periods of low volatility compression
| Strategy Type | Bollinger Band Squeeze and Expansion Trading |
| Market Outlook | Captures volatility breakouts after periods of low volatility compression |
| Risk Profile | Moderate - defined squeeze signals with clear invalidation |
| Reward Profile | High reward from explosive moves following volatility compression |
| Time Horizon | Intraday to swing depending on squeeze timeframe |
| Capital Requirement | Moderate (₹1,50,000 - ₹4,00,000) |
| Margin Type | MIS for intraday squeezes; NRML for daily/weekly squeezes |
| Best Used When | Bollinger Bands narrow significantly, indicating imminent volatility expansion |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Nifty Typical | Band width below 100 points indicates squeeze |
| Banknifty Typical | Band width below 300 points indicates squeeze |
| Duration | Squeezes typically last 5-15 periods before expansion |
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