How do I know if my Bollinger Band is squeezing?

A Squeeze is triggered when volatility reaches a six-month low and is identified when Bollinger Bands® reach a six-month minimum distance apart.

What indicator works well with Bollinger Bands?

RSI
Fortunately, Bollinger Bands can be used in combination with different indicators, like RSI, as well as support and resistance, moving averages, MACD, stochastics, and any other research tools that may support your analysis.

How do you set Bollinger Bands on mt4?

Right-click the Bollinger bands (you will have to be exact on the line of the indicator to get the menu seen below) Choose Bands(20) Properties – The (20) is the respective parameter (Periods) and can differ, depending on your choice when setting the parameters.

What is BB Squeeze Indicator?

The Bollinger Band Squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow. According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline.

How do you use BBW indicator?

The BandWidth indicator can be used to identify the Bollinger Band Squeeze. This alerts chartists to prepare for a move, but direction depends on the subsequent band break. A squeeze followed by a break above the upper band is bullish, while a squeeze followed by a break below the lower band is bearish.

How do you profit from the Bollinger squeeze?

The Bollinger Band Squeeze is a straightforward strategy that is relatively simple to implement. First, look for securities with narrowing Bollinger Bands and low BandWidth levels. Ideally, BandWidth should be near the low end of its six-month range. Second, wait for a band break to signal the start of a new move.

What happens after a Bollinger Squeeze?

According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signals the start of a new move.

Are Bollinger Bands good indicators?

Key Takeaways Using only the bands to trade is a risky strategy since the indicator focuses on price and volatility, while ignoring a lot of other relevant information. Bollinger Bands® are a rather simple trading tool, and are incredibly popular with both professional and at-home traders.

How do you master Bollinger Bands?

Another strategy to use with Bollinger Bands® is called a squeeze strategy. A squeeze occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation. A trader can visually identify when the price of an asset is consolidating because the upper and lower bands get closer together.