Volatility squeeze breakout

When Bollinger bands contract inside Keltner channels, volatility is unusually low. Low volatility tends to be followed by expansion.

Breakout strategiesIntermediateConfirmed on candle close

Watch it play out

Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.

How the live chart applies the rules
  • 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
  • Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
  • One setup at a time. While a setup is playing out, the same strategy doesn't start another.
  • Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
  • How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
  • Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
  • The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.

How Volatility squeeze breakout works

TargetStopThe range sets the battle linesClose outside the range
Example drawing, not live market data.
1Where's the level?
The squeeze: Bollinger bands inside Keltner channels.
2What's the trigger?
The squeeze ends on a closed candle and momentum closes in one direction.
3Where is it wrong?
The opposite side of the squeeze range.
4Where does it end?
2R.
Markets
Stocks, Futures, Crypto
Timeframes
15m to 1d
Sessions
Any
Also called
TTM squeeze, Bollinger-Keltner squeeze

What it means

When Bollinger bands contract inside Keltner channels, volatility is unusually low. Low volatility tends to be followed by expansion.

How it is confirmed without repainting

Squeeze state is calculated on closed candles.

When it fails

False starts in both directions.

Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.

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