Show me a example of bollinger squeeze
3/11/2024 03:48pm
Here's an example of Bollinger Squeeze:1. Bollinger Band Squeeze: This is a trading strategy that aims to find consolidations with decreasing volatility. It is a neutral strategy in its purest form.2. Trading Strategy: The strategy involves identifying a Bollinger Band Squeeze when volatility reaches a six-month low and the Bollinger Bands are at a six-month minimum distance apart. This can be a signal of a potential breakout.3. Breakout: When the Bollinger Bands start to narrow and the volatility decreases, it is often a sign that a stock is about to break out of this consolidation phase and move in a more volatile direction.4. Technical Indicator: The Bollinger Band Squeeze is a technical indicator that can help traders identify potential breakouts and take advantage of the increased volatility that follows.It's important to note that the Bollinger Band Squeeze is just one tool among many available in technical analysis, and it should be used in conjunction with other indicators and strategies to make informed trading decisions.