The "Squeeze" play

I was in the GBP/USD and the USD/JPY for a few last night, and it was a scary ride! I was testing some of Vegas's models, and I got scared and closed out my positions because I entered them wrong. Had I held it, would have woke up with an extra 400 pips <death> {Deep sigh} </death>

Anyway..

So onto the squeeze; I like the BB squeeze play, but I'm trying to figure out how everybody else is using it as far as "direction confirmation".

I am currently using the CCI, MACD, RSI, and Slow Stochastic to confirm a direction.

I'm fairly interested how others are doing, and where you all put your stops to prevent a good whipsaw..

Hey twoblink, you can have a peak at my trading journal where I trade with a custom squeeze indicator, CCI and some Moving Averages. Love to hear others ideas as well.

http://www.forexfactory.com/forexfor...ead.php?t=5174

I like to use Momentum for an indicator of direction. Just watch out for the dreded head-fake.

Grrr.. I just got headfaked! The MACD, RSI, and CCI was in agreement, but the Stochastic wasn't.. and it swung up and then down right away..

That is the dreded headfake! It Hapens a lot! you have to be ready for it and not pull the trigger too soon.

This is where entry methods are so important, the AUD/USD threw in a head fake also, but with an efficient entry at the bottom of the BB and a quick stop move as it hit the top BB, the head fake still resulted in a small gain. Check out my journal for more details, but the squeeze requires some nimble trading at times.

Akuma99,

I have read your entries on BB squeezes..

I'm wondering then, do you enter, and in the beginning, lock that stop line really tight, so even if it head-fakes, you still eek out a profit and no damage?

To be honest twoblink, I play it by ear a little based on market conditions, but generally if a trade moves to +25 or so then I certainly tighten the stop, and, if the bollingers are really narrow, usually move to +1.