A popular filter in the chartmill screener is the squeeze play filter. In this article we will explain the exact conditions for these filters and explain the squeeze play concept in detail. The goal of the squeeze play filters is to find stocks that are trading in a narrow range. The narrow range indicates that the stock is forming some kind of consolidation or base.

As long as the stock keeps on trading in this range it is not that interesting.

Only when the stock breaks out of this zone there is a potential for an explosive move. A popular misunderstanding is a confusion with short squeeze setups , remember for once and for all: The squeeze play condition is met when the Bollinger Bands 14 are inside of the Keltner Channels 20,1. So two indicators are involved here:. Typically, the standard deviation will be more sensitive to volatility than the ATR. Looking back at our condition we are looking for stocks where the standard deviation is less than 1.

Typically, stocks are moving in bursts: The goal of the squeeze play filter is to find these consolidation zones and to step in before or at the next explosive move.

Profiting From The Bollinger Squeeze

Looking at the chart above, we see a random stock that moved from around 24 to You can see the different consolidation zones and the arrows indicate when the stock was marked as a squeeze play.

The chartmill screener allows filtering for squeeze play conditions on the second technical tab.

As mentioned in the video, the Momentum Oscillator may be used to determine the direction of the move. The following options are possible:.

Documentation Getting started How to use Chartmill The Screener Indicators Tools Publications News Contact Contact Form. Chartmill Finding stocks ready to break out of consolidations with squeeze plays A popular filter in the chartmill screener is the squeeze play filter.

When is a Bollinger Squeeze not a Bollinger Squeeze?

Trading in a narrow range. So two indicators are involved here: Bollinger Bands are bands around a moving average, the distance from the moving average is based on the standard deviation. The standard deviation changes as volatility increases and decreases.

So the narrower the bands, the lower the volatility. Keltner Channels are placed around an exponential moving average.

Top 6 Bollinger Bands Trading Strategies

Instead of using the standard deviation, they use the Average True Range ATR as distance. Example Typically, stocks are moving in bursts: Squeeze plays explained by John Carter. Check out this video on squeeze plays: Squeeze plays in the chartmill screener The chartmill screener allows filtering for squeeze play conditions on the second technical tab.

Bollinger Band Squeeze | Blue Point Trading Worldwide Ltd.

The following options are possible: Squeeze Play Daily Setup: This checks for the squeeze play condition on a daily basis. The Bollinger bands will be inside the Keltner channels.

Squeeze Play Daily Short: This checks for a short signal of the Momentum Oscillator after a daily squeeze play setup. So in this case the Bollinger Bands already moved out of the Keltner channels. Squeeze Play Daily Long: This checks for a long signal of the Momentum Oscillator after a daily squeeze play setup. Squeeze Play Weekly Setup: Squeeze Play Weekly Short: This checks for a short signal of the Momentum Oscillator after a weekly squeeze play setup.

Squeeze Play Weekly Long: This checks for a long signal of the Momentum Oscillator after a weekly squeeze play setup.

Interesting Combinations with other filters. Momentum squeeze play setups: Short squeeze play setups: This screen also uses the trend intensity indicator to find squeeze plays in stocks in a downtrend.

We are looking for short opportunities here. Possible other interesting combinations can be made with: All rights reserved contact.