Entry Technique 04 · Band Squeeze and Expansion
Body
This method requires a stretch where the Bollinger Band width has narrowed sufficiently to come first, and then treats it as an entry candidate when the bands open out to one side and the close finishes outside the band.
The squeeze has to come first, and after the break the bands have to actually widen.
- A squeeze stretch has to be there first. Do not judge from the expansion alone.
- Check whether the bands widen along with it after the break.
- If the opposite band turns direction, reliability rises.
- Recalculate the stop loss distance on the basis of the expanded volatility.
Weakness · A squeeze is only a hint about size and does not tell you the direction, so it can break the other way. Bands are values calculated from past prices, so they always react late.
This is community learning material and is not investment advice, a personal recommendation, or a solicitation to trade. The conditions organized here are a conceptual explanation, and the actual behavior and setting values have to be checked against the version provided and its configuration documents. No rule guarantees a profit, a loss limit, or a fill at the intended price.
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