When Bollinger Bands compress inside Keltner Channels, a squeeze is occurring. The eventual breakout from the squeeze produces explosive moves.
Indicators Used
Bollinger Bands (20, 2)Keltner Channel (20, 1.5)Momentum (12)Volume
Rules
📈 Squeeze Long
- BBands inside Keltner Channel (squeeze active)
- Wait for BBands to expand outside Keltner (squeeze fires)
- Momentum oscillator must be positive and rising
- Enter on first bar after squeeze fires with rising momentum
- Volume should increase on breakout
📉 Squeeze Short
- Squeeze fires with negative and falling momentum
- Enter short on first bar after squeeze
- BBands expanding below Keltner confirms
57%
Win Rate
3.1:1
Avg R:R
2-4
Trades/Week
💡 Pro Tip
Squeezes that last 6+ bars produce stronger breakouts. The longer the squeeze, the more explosive the release.