Bollinger Bands Squeeze Play

Bollinger Bands are often used by traders to show probable parameters for price movement.  Approximately 90% of all price movement is said to occur within the range of these bands. 

The Bollinger Bands Squeeze Play is a specific technical set up on the charts that also integrates Keltner Channels and CCI for trading a break-out pattern on the charts.

These squeeze patterns can occur on any time frame chart and they are most important when they occur across multiple time frames at the same time.

Here's an example of a BB squeeze that occurred on the SPY:

On the above chart, the arrows point to the yellow lines of the BB being squeezed inside the Keltner Channel.  These squeeze patterns do not usually last very long.  And, on the above chart, you can see how price broke down after the pattern occurred.  After the break down, price stayed in (what I call) the "sweet spot", which is that area just between the two bands.  This provided a clear direction for the market for several days and produces a perfect opportunity for short selling.

The following video will give you the specifics.  If you enjoy the video, then you might enjoy the Support & Resistance series of videos that are available toward the bottom of this page.

In the above video, I refer to TC2000.  TC2000 is the chart platform that I have been using since 2008 and I highly recommend it.  If you'd like a two-week free trial to this service, then Click Here for more information about TC2000.  Scroll to the bottom of that page and click "Try it FREE for 14 days."

(Click on Bollinger's book cover for more details.)

Want to learn more about
Bollinger Bands and other technical indicators?

As mentioned at the top of this page, I have a 6-part video series on Support & Resistance.  Regardless of whether you are day trading or swing trading, trading stocks or Forex, then "Support & Resistance" is the foundation for all trading.  For access to that free series, Click Here.

I consider Support and Resistance to be the most important aspects of trading.  And, although it takes some time to learn the various aspects of technical analysis, you will become more comfortable with it over time and your level of confidence in making trade decisions will also grow.  So, I strongly encourage you to subscribe to this short video series.  And if you're worried about signing up for someone's email list and getting bombarded with offers, then let me set your mind at ease.  I seldom promote other people's sites and I definitely don't have time to be sending you an email every day of the week. 

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to and affiliated sites.