Volatility squeeze (Bollinger inside Keltner)

Classic / volatility · Timeframe: H1 / H4 · Sessions: Before London/NY

After a period of very low volatility, price often expands strongly.

How it works

When the Bollinger Bands narrow until they sit inside the Keltner channel, volatility is compressed (John Carter's 'squeeze'). Leaving that state with a close outside the band often starts an expansion in that direction.

Step-by-step rules

1. Bollinger (20, 2) inside Keltner (20, 1.5 ATR) for at least 6 candles.
2. Close outside the Bollinger band.
3. Entry at the close; stop at the 20-period average.
4. 2R target.

How Marketalyx tests it

Detector (H1): squeeze ≥6 candles and a close outside Bollinger; stop at the average; 2R target.

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Educational content. No strategy guarantees profits and past performance does not guarantee future results.