Available at Wealthcharts® through Wealthcharts® only. The scanner software is currently available for the thinkorswim®, TradeStation® and eSignal® platforms. If the underlying is in a squeeze or has triggered out of a squeeze, it will show up on the watch list matrix. The volatility squeeze break-out is like a coiled spring pressed together to its extreme limit and then released, causing a quick and powerful move. When this condition occurs, a major break-out generally follows it up or down out of the consolidated, narrow price band. The matrix is color-coded to give probable breakout directions based on the Power Cycle Trading Model.Ī volatility squeeze is simply a period when price consolidates into a very narrow range and the underlying implied volatility drops off. The scanner uses a watch list matrix to display when in a Volatility Squeeze and when out. The model shows the number of bars in a Volatility Squeeze and the number of bars after a trigger or breakout from a Volatility Squeeze. The scan is based on components of the Power Cycle Trading Model™ designed specifically to identify a Volatility Breakout and alerts when the Volatility Breakout has triggered.
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