Stock scanner: Bollinger Band Squeeze

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

Bollinger Band is an important technical indicator, defined by the 20-day moving average and two standard deviations (positive & negative). Bollinger Band Squeeze is generally used by traders, who try to capture a stock’s significant advance or decline. The trader gets a much favourable risk-to-reward ratio, which 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 highs occur, and traders can significantly benefit from this.   

Our scanner identifies such stocks that have witnessed fallen volatility along with a higher chance to break Bollinger Band in either direction.  

Here is the list of stocks that have witnessed a Bollinger Band Squeeze: 

BUTTERFLY

FMGOETZE

BHAGYAPROP