Squeeze Breakout for BTCUSD (Bitcoin)

Trade the breakout of a Bollinger Band squeeze — entries only when volatility expands.

Why Squeeze Breakout Works on BTCUSD

A "squeeze" happens when Bollinger Bands contract inside the Keltner Channel — volatility is unusually low. The strategy waits for the squeeze to release, then trades in the direction of the expansion. Filters out chop, captures the start of new trends. Works best on volatile symbols where squeezes are rare and consequential.

Bitcoin trades 24/7 with extreme directional moves. Strong on trend and momentum, brutal on naive mean-reversion. Use ATR-aware stops and avoid weekend liquidity gaps.

Crypto trades 24/7 with no central market. The strategy below capitalizes on weekend liquidity gaps and the asset's tendency to make sustained directional moves.

Pine Script Source

Copy this into PineForge — backtest on BTCUSD or any supported symbol, then deploy as a live bot.

//@version=5
strategy("Squeeze Breakout", overlay=true)

length = input.int(20, "Length")
bb_mult = input.float(2.0, "BB Multiplier")
kc_mult = input.float(1.5, "KC Multiplier")

basis = ta.sma(close, length)
dev = ta.stdev(close, length)
bb_upper = basis + dev * bb_mult
bb_lower = basis - dev * bb_mult
atr = ta.atr(length)
kc_upper = basis + atr * kc_mult
kc_lower = basis - atr * kc_mult

squeeze = bb_upper < kc_upper and bb_lower > kc_lower
release = not squeeze and squeeze[1]

if release and close > basis
    strategy.entry("Long", strategy.long)

if release and close < basis
    strategy.entry("Short", strategy.short)