Stock scanner: Bollinger Band Squeeze

Rohit Kale
/ Categories: Trending, Mindshare
Stock scanner: Bollinger Band Squeeze

 Bollinger Band Squeeze is generally used by traders who look to capture a stock’s significant advance or decline. 

The Bollinger band is an important technical indicator, defined by the 20-day moving average and two standard deviations (positive and negative). Bollinger Band Squeeze is generally used by traders who look to capture a stock’s significant advance or decline. The trader gets a much favourable risk-to-reward ratio and helps them stay ahead in the game. 

A Bollinger Band Squeeze occurs when an underlying asset’s volatility falls to lower levels and Bollinger Bands are narrowed. The volume falls and the stock doesn’t see much movement. Thus, any sudden buying interest/sell-off shall trigger a series of long/short positions respectively. As suggested by the theory of Bollinger Band Squeeze, a period of low volatility is often followed by volatile changes in the stock price. Once the volatility sets in, a series of higher high occurs, and traders can significantly benefit from this.  

Our scanner identifies such stocks having witnessed fallen volatility and have higher chance to break the Bollinger band in either direction. 

Here is the list of stocks witnessing a Bollinger Band Squeeze-

CLNINDIA

GALAXYSURF

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2 comments on article "Stock scanner: Bollinger Band Squeeze"

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Ravindra Kumar Karnani

As on 28th there seems no BB squeeze in Galaxysurf. The latest squeeze seems to have happened ~ 28th Jan 2022.

Is my observation correct?

CLN india has a distinctive squeeze in BB in the current chart. Thanks.


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Rohit Kale

Hi Ravindra,

What you have said is correct. There was a technical problem in our scanner which we have resolved. Thanks for letting this come to our notice!

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