Squeeze Momentum Indicator Explained

Key Takeaways

• 1Squeeze = Bollinger Bands inside Keltner Channels—volatility contraction before expansion.
• 2Dots (squeeze on) appear when consolidating; dots disappear (squeeze off) = breakout imminent.
• 3Histogram color: green = bullish momentum, red = bearish momentum; enter on first color flip.
• 4Best for catching explosive moves after consolidation—avoids choppy sideways action.
• 5Combine with trend: only long squeezes in uptrend, only short squeezes in downtrend.
• 6Exit when histogram momentum weakens or hits major structure (S/R, trendline).