AtHomeTrader

I like the BB Squeeze trade. The way I look at is is to simply measure expansion/contraction volatility cycles. Catching the end of a contraction cycle can be very profitable because when a new expansion cycle begins big profits can potentially made quickly. Nothing works all the time of course, so always use your risk and money management rules. I personally use a momentum indicator on a higher time frame to help me determine the direction of the expansion move. Having said that, it works good for the initial move, but I've seen often where the volatility move will begin in one direction and then turn, and the major move will occur in the other direction! Having traded for many years, and seeing this many times, I just trade bar-by-bar, watch for this in case it occurs, and will do a stop-and-reverse if needed. Suggestion - don't know which charting software you're using, but Bollinger Band Squeezes are so well-known that you may want to search for a free custom indicator that colors that Bollinger Bands when the mathematical requirements for the Squeeze are met. People often post such free indicators on forums (maybe even this one). Wishing you happy trades!