Stock scanner: Bollinger Band Squeeze

 Bollinger Band Squeeze is generally used by traders who look to capture a stock’s significant advance or decline. 

The Bollinger band is an important technical indicator, defined by the 20-day moving average and two standard deviations (positive and negative). Bollinger Band Squeeze is generally used by traders who look to capture a stock’s significant advance or decline. The trader gets a much favourable risk-to-reward ratio and helps them stay ahead in the game. 

A Bollinger Band Squeeze occurs when an underlying asset’s volatility falls to lower levels and Bollinger Bands are narrowed. The volume falls and the stock doesn’t see much movement. Thus, any sudden buying interest/sell-off shall trigger a series of long/short positions respectively. As suggested by the theory of Bollinger Band Squeeze, a period of low volatility is often followed by volatile changes in the stock price. Once the volatility sets in, a series of higher high occurs, and traders can significantly benefit from this.  

Our scanner identifies such stocks having witnessed fallen volatility and have higher chance to break the Bollinger band in either direction. 

Here is the list of stocks witnessing a Bollinger Band Squeeze-

CLNINDIA

GALAXYSURF