The ‘squeeze play’ pattern refers to prices trading in a narrow range. These stocks are forming a consolidation zone and when the pattern is combined with ‘trend intensity‘ or ‘strong stocks‘, often some nice entries are part of the list. This is also why the momentum squeeze play screen is one of the most popular screens in our shared screens list.
Read more about squeeze plays here.
More squeeze plays on chartmill
Recently, something funny happened. About a month ago, we found out there was a bug in our calculation of the Bollinger Bands indicator. We fixed the bug of course, but a side effect of the fix was that we were finding squeeze plays that were apparently less nice than before. (Squeeze plays are based on Bollinger Bands, so it was to be expected that the results would be different).
So, we decided to introduce some variations in the squeeze plays. We now have: