You can't just use to Trade and Earn Money as you need to confirm the Break Out Signal that you get after a Squeeze.
Here are some tips how to confirm that:
1. Always looks for Squeezes as you will find Price Break Outs most of the times
2. Use to confirm the Price Break Out
3. Make sure is not Overbought/Oversold to have a Major Price Break Out
4. Look for Width to see whether its Rising as well
5. When there's a Major Price Break out it will go on for 1 -3hrs so you can take multiple entry points to Maximize your profits
6. Always check the levels as there's possibility of the Price reversing the other way
7. I would also recommend to check the investing.com and look for Strong Buy/Sell Signal before you enter your Trade
8. There will be fake break outs where the price go the otherway
9. You can have stop losses and enter the Trades on the otherway if there's a fake breakout
Few other Tips to Enhance the above:
1. Use default to reconfirm the Trend Direction (Thanks for the Idea from HamzaLeith)
2. Check the Direction of the Upper/Lower Bands.
For reversal's and continuations (opposite is true for reversals or continuations)
1.) Price approaches the Buy Zone and the upper and lower bands remain flat. Reversal - Likely a sharp reversal to the lower band. Because both bands are flat this will likely be short lived.
2.) Price approaches the Buy Zone and the upper band goes up and the lower band is flat or moving up slightly. Continuation - Price will likely continue up slowly for a time.
3.) Price approaches the Buy Zone and the upper band goes up and the lower band goes down. Continuation - Price will likely move up fast and furious. This is the best continuation pattern for the bands. This is a rapid expansion of . You will experience "fake out's" sometimes but most of the time this set-up will produce some good profits when executed properly.
4.) Price approaches the Buy Zone and the upper and lower bands both go down. - Reversal - This is likely to result in a reversal
Summary: Use / Width & Indicators to Confirm the Signal
Hope this Helps Anyone who like to maximize the profits
I think you can overcome this if you add a Bollinger Band with Stardard Deviation 1 so that the sell zone is between the below 2 Bollinger Bands and the buy zone is between the upper 2 Bollinger Bands. Middle area which is between SD -1 and +1 is "No Mans Land" and this is where you shouldn't trade or have stop loss setup. See the screenshot here:
Also you can read more about this here: http://www.investopedia.com/articles/trading/05/022205.asp
Hope this helps
Also see my other reply with the settings that you should have for your Bollinger bands
Hope this helps. Please share the idea if this works for you. Thanks
1. Bollinger Band (BB) with Period of 20 and Standard Deviation 1 (Lets Say this is your BB #1). Then select your preferred color (orange in my example)
2. Bollinger Band (BB) with Period of 20 and Standard Deviation 2 (Lets Say this is your BB #2). Then select your preferred color (blue in my example)
Sell Zone: Between the Lower BB#1 and BB#2
Buy Zone: Between the Upper BB#1 and BB#2
Neutral Zone: Between the Upper and Lower BB#1 (Don't Trade Here / Take Profits Here)
Like I mention above you can read more about this Double Bollinger Band Strategy here:
Hope this helps