Strategies6 min read
Bollinger Bands Squeeze: Volatility Breakout Strategy
When Bollinger Bands contract, a big move is coming. Learn the squeeze strategy for breakout trades. Spot the contraction, plan the breakout, filter the false.
Identifying the Squeeze
Band width narrows to lowest level in 120+ periods. The longer the squeeze, the bigger the breakout.
Trading the Breakout
Wait for price to break above upper band (long) or below lower (short). Confirm with volume. Stop at middle band.
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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.