Bollinger squeeze

Example

Say a $50 stock’s Bollinger Bands usually sit about $4.00 apart, then over two quiet weeks they narrow to $1.20, the tightest in six months. Traders watch such squeezes because quiet stretches tend to give way to bigger moves. It says nothing about direction, though: with the middle band at $50.00, the break could come up through $50.60 or down through $49.40.

Hypothetical numbers, for illustration only.