Squeeze

Markets alternate between quiet and busy. When gold goes quiet, the Bollinger Bands pinch together: volatility is at its lowest, and the move that follows is often sharp.

The squeeze strategy measures that compression objectively, then waits for price to choose a side instead of guessing the direction in advance.

When it works

Before the London open and ahead of the New York session, when gold has drifted in a tight range. It's weakest right before major news, when breakouts often reverse.

The setup

Bollinger Band width at its lowest point of the last 20 candles (compression).

Common mistakes

• Calling every narrow range a squeeze without measuring it.
• Placing the stop too tight inside the compression box.
• Forgetting that gold needs a smaller lot size than currency pairs.