This screen finds squeeze play setups on stocks that are in a strong uptrend. A squeeze play setup occurs when the Bollinger Bands are inside the Keltner channels. When this happens, the stock has been trading in a narrow range for a while. A major move could happen when the stock breaks out of this trading range.
Some general pointers on trading, setups, position sizing and money management.
The Trend Intensity indicator measures the strength of the trend.
The Bollinger Bands are used to measure the volatility of a stock. in this article we will have a look at the different screen options in ChartMill
Find consolidations based on the Bollinger Band Squeeze criteria by using the Keltner Channels
In this article I will elaborate on a number of different screens that you can use to find qualitative momentum setups and I will go over a number of tweaks that allow you to fine-tune the screens so that they fit your personal situation even better.
Tsunami Setups or Squeeze Play Setups can lead to great breakouts
Momentum Squeeze Plays find consolidations after a strong move up, using the Bollinger Bands.
A very popular and widely used technical indicator are the Bollinger Bands, developed by John Bollinger. The indicator is used to measure the volatility of a stock or any other financial instrument.
Keltner Channels are used to identify price levels where the existing trend changes direction at the time the price breaks out of the channel or to visualize overbought and oversold levels in consolidating markets.
In this video I’ll be covering 5 predefined momentum screening ideas from our Trading Ideas' section in ChartMill. Momentum trading means that you are primarily concerned with short-term positions. The intention is to buy stocks which are already rising and to sell them again quickly as soon as the first signs are visible that the rising is losing momentum. As an investor you try to benefit from the high volatility associated with the rise in this relatively short time.
This filters for stocks showing a strong trend.
This filters the squeeze play condition: the bollinger bands inside the keltner channels.
This filters for stocks with a minimum average daily volume of at least 300K. This filter ensures liquidity.