Volatility compression: what do you do with a squeeze?

Ranges tighten, Bollinger Bands pinch, and the market loads a spring. Compression precedes expansion — but the direction and timing are unknown, which is the entire problem.

What's your squeeze play?

• how you measure compression objectively
• whether you trade the break or wait for it
• how you handle the squeeze that never resolves

The Bollinger Bands guide covers the squeeze and its usual outcomes.