Bollinger Band squeezes on hourly charts
Posted: Sun Nov 01, 2026 9:18 am
When Bollinger Bands contract to a narrow width, volatility is low, and some traders expect a breakout. The squeeze is a popular setup, but the direction of the breakout is not predicted by the bands.
A method to test: define a squeeze as band width at its lowest point over the last 100 bars, then record the size and direction of the move over the following bars. Compare with random periods to see whether squeezes are followed by larger moves than usual.
If squeezes do lead to larger moves, a straddle approach, entering in the direction of the first break, might be worth testing. False breaks are common, so a confirmation rule, such as a close outside the band, may help.
News releases often end squeezes, so a squeeze before a scheduled event may simply reflect waiting for data.
The width threshold and lookback need to be set without too much optimisation.
Has anyone measured squeeze outcomes on intraday charts?
A method to test: define a squeeze as band width at its lowest point over the last 100 bars, then record the size and direction of the move over the following bars. Compare with random periods to see whether squeezes are followed by larger moves than usual.
If squeezes do lead to larger moves, a straddle approach, entering in the direction of the first break, might be worth testing. False breaks are common, so a confirmation rule, such as a close outside the band, may help.
News releases often end squeezes, so a squeeze before a scheduled event may simply reflect waiting for data.
The width threshold and lookback need to be set without too much optimisation.
Has anyone measured squeeze outcomes on intraday charts?