Squeeze Momentum Signals from Bollinger Bands and Keltner Channels

Summary

This strategy combines Bollinger Bands, Keltner Channels, and a linear regression momentum series. A squeeze is defined when the Bollinger Bands sit inside the Keltner Channel, a condition intended to indicate compressed volatility. The source offers two signal modes: crossovers between momentum and its moving average, or directional signals based on whether momentum is above or below zero. It also exposes long and short toggles and percentage stop and target settings. The published configuration describes a brief one-hour crypto futures test with a 15-minute base period.

The write-up presents the squeeze as a possible precursor to a trend move, but it supplies no reported performance metrics or evidence that entries after compression are profitable. In the code, squeeze state is calculated but does not gate the entry signals, so trades can occur without a squeeze. The supplied source also includes stop and target exits, while separate close calls appear alongside entries; resulting order behavior should be checked in the platform. Parameter sensitivity, fees, slippage, leverage, and performance outside the stated test configuration are not established.

Key ideas

• The squeeze condition occurs when Bollinger Bands are contained within the Keltner Channel.
• Momentum is calculated from price relative to a channel-based reference and smoothed with linear regression.
• The strategy can signal from momentum crossovers or from momentum's sign, depending on the selected mode.
• Although squeeze state is calculated, it does not gate the entry conditions in the supplied code.
• The document describes a short crypto futures test configuration but provides no performance metrics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.