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Bollinger Squeeze

Low volatility setups before big moves

How it works: Bollinger Band width contracts during consolidation, then expands during breakouts.

  • Extreme Squeeze = Band width in bottom 5% of historical range (rare, high probability)
  • Tight Squeeze = Band width in bottom 10% (good setup)
  • Volatility is mean-reverting - low volatility precedes high volatility
  • Direction of breakout not predicted - wait for confirmation

Bollinger Settings

Standard: 20-period, 2 std dev. Squeeze when width is in bottom 10%.

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