Bollinger Bands on M5: squeeze before the open

[FXS London Scalper]

A Bollinger Band squeeze, when the bands narrow, is often taken as a sign that a big move is coming. Before the London open, the bands usually squeeze anyway, because Asia is quiet.

So what does a squeeze tell you?

• That volatility was low, which is expected before London.
• Not the direction of the coming move.
• Not the size, beyond "probably larger than the last hour".

How it can still help:

• Comparing today's squeeze with recent days: an unusually narrow one may precede a bigger move.
• Using the band edges after the break as rough targets or trailing levels.

A test: measure band width at 07:55 London each day and compare with the range of the first London hour. If narrow bands don't predict wider ranges than normal ones, the squeeze adds nothing.

If squeezes do show something, it's more likely to be about range than direction, which is still useful for setting targets and deciding whether a breakout plan makes sense today.

Do you use Bollinger Bands for scalping?