When Bollinger Bands contract tightly (low volatility compression), the eventual breakout is often explosive. Scalp the directional break of the bands on a volume surge. Catching the first leg of a volatility expansion.
Indicators Used
Bollinger BandsVolumeATR
Rules
📈 Long Break
- Wait for BB squeeze: bandwidth at 20-period low (tightest in last 20 candles)
- Price must be consolidating inside bands for at least 8-10 candles
- Candle closes above upper band with volume > 1.5× average
- Enter long on close of breakout candle
- Stop: middle band (SMA 20)
- Target: measured move (squeeze width × 2)
📉 Short Break
- Same squeeze setup, closes below lower band with volume confirmation
- Enter short on close
- Stop: middle band
- Target: 2× squeeze width below
⚙️ Configuration
- // BB Squeeze Config
- Bollinger period: 20, 2 StdDev
- Squeeze detection: bandwidth at 20-bar low
- Volume confirmation: 1.5× 10-candle average
20-bar low
Squeeze
2:1
R:R Target