E5Trading

Squeezes & Breakouts: Squeeze Visualization

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COINBASE:BTCUSD   Bitcoin
Squeezes Visualization

  • Squeezes occur when an asset's price volatility falls to statistically low levels.
  • Breakouts from the squeeze are typically violent and potentially highly profitable if the trader can get in the trade early and catch the breakout in the right direction.
  • MetaWorld Squeezes & Breakouts was built to help traders take advantage of these squeeze play opportunities.
  • Volatility bands display on the chart along with colored squeeze bands and channel fills.
  • Toggle (Squeeze Bands) to display "the squeeze" when price action is in a low-volatility range. Default (On).
  • The color setting of the squeeze bands controls the color of the channel fill and the squeeze table in the lower-right corner of the chart.

Volatility Bands

  • Gradient shading represents reversal zones based on Bollinger Bands (BB).
  • The likelihood of price reversion towards the mean (i.e., basis) increases the further price action pushes into the darker shaded zones.
  • The middle area inside the shaded bands (i.e., same color as chart background) is the Keltner channel.
  • The Keltner channel is another volatility-based method used to identify breakouts and mean reversion trading opportunities.
  • Keltner channel boundaries calculate using the exponential moving average (EMA) and average true range (ATR).
  • Toggle (Volatility Basis) to display the basis line (i.e., mean) of the volatility bands. Default (Off).

Squeeze Table

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