DislikedHere is a strategy and chart setup that might help you.
The strategy is to await a period of low volatility with little price action, and then to follow it to the inevitable breakout….sudden high volatility and price movement. Your trade is entered and closed during this movement.
The chart setup uses Bollinger bands to show the period of low volatility…the squeeze. The Fibonacci Extension tool is used to show the levels most likely for the price run to stop, or pause at. Two Bollinger bands are employed. When both are squeezed, channeling, or pinched at the same time, the breakouts tend to be best. The Fibonacci extension is measured across the pinch of the inner Bollinger band and then applied either to the top pinch point if the run goes up, or applied to the bottom pinch point if the run goes down. The extension levels produced give you target exit levels.
Once you spot a squeeze/pinch setup (preferably in both Bollinger bands around the same time) that starts to run, or break out, you enter the trade, apply your Fibonacci extension, and monitor the run to/thru the extension levels. Levels 162%, 262% and 400% are often your 1st, 2nd, and third targets. However, a really good “double pinching” (both bands simultaneously) can result in much higher levels being reached.
I am attaching a screenshot of a breakout run just traded. It was a good run, and on the 15 chart setup it ran to the 262% level.
I can provide more specifics and answer questions if this strategy/setup is of interest to others.Ignored
This is very close to something I was working on!
I wasn't using the bollinger bands though that's a nice modification.
FF doesn't let me contact you for some reason so... feel free to drop me a private message.