glossary

squeeze

Squeeze: A period of contracting price range and volatility that often precedes expansion; also used for a forced move when trapped participants must cover.

A volatility squeeze is often measured with bands, such as Bollinger Bands narrowing inside Keltner Channels. A short squeeze describes short sellers forced to buy back.

related

Volatility contraction pattern (VCP)

Part of the glossary. See also the Wyckoff method.