How do traders use Squeeze Momentum?

Squeeze on = the market is coiling; a bigger move often follows. When the squeeze releases, the histogram's side (above or below zero) hints at the direction. Growing bars = momentum building.

Volatility and trend strength

Squeeze Momentum

Squeeze Momentum shows when Bollinger Bands are inside the Keltner Channel (a 'squeeze', low volatility) and draws a momentum histogram.

How to read it

Squeeze on = the market is coiling; a bigger move often follows.
When the squeeze releases, the histogram's side (above or below zero) hints at the direction.
Growing bars = momentum building.

Settings

Default BB 20 / 2, KC 20 / 1.5.

Example rule to test

Idea: wait for the squeeze to release with the histogram turning positive.

Common mistake

Entering during the squeeze before the direction is clear.

Try it free on iTradeChart

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For learning only. Backtests use past data and do not guarantee future results. Not investment advice.