What is a squeeze in the context of cryptocurrency trading?

1 answers

• Dec 29, 2021 · 3 years ago
  A squeeze in cryptocurrency trading is when the market becomes tightly range-bound, and volatility decreases significantly. It's like a pressure cooker building up steam. Traders use various indicators to identify a squeeze, such as Bollinger Bands, which show a contraction in price range, and decreasing trading volume. When a squeeze is released, it often results in a breakout, and traders aim to catch the momentum. However, not all squeezes lead to significant price movements, so it's important to use proper risk management and have a strategy in place.
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