By name: momentum-squeeze description: >- Two-phase equity momentum playbook — find coiled "Volatility Squeeze" stocks ready to break out, then buy confirmed multi-timeframe uptrends on pullback. Use when Michael asks to scan for squeezes, find pullback entries, evaluate a ticker against the momentum cycle, or decide where a stock sits in the coil → breakout → pullback → re-coil loop.
Momentum & Squeeze Strategy
Two complementary strategies that capture different phases of a stock's momentum cycle. A name typically rotates: Squeeze → breakout → Momentum pullback → trend exhaustion → re-coil → Squeeze again.
1. Volatility Squeeze ("The Snap") — pre-breakout
Find stocks quietly coiling, ready to explode.
| Condition | Meaning |
|---|---|
SqueezeRatio < 1.0 |
Daily ATR compressed vs weekly ATR |
SqueezeRatio < 0.7 |
Extremely tight — maximum coil |
| EMA stack aligned | 8 > 21 > 34 > 55 > 89 (bullish bias) |
| Not at 52wk high | Avoid flatlined M&A targets |
| Rel Volume ≥ 1.3x | Starting to wake up |
SqueezeRatio = ATR(14) / (ATR_Weekly / 2)
< 0.70 → 🔋 Tight squeeze (ready to snap)
< 0.85 → ⚡ Moderate
< 1.00 → 📊 Light compression
> 1.00 → ❌ Expanded (not squeezed)
Entry signals: Volume Spark (1.5x+), Deep Coil (ADX < 15), Price at EMA.
Thesis: "Gone quiet. Daily volatility compressed against the weekly baseline. EMAs bullishly stacked. Volume picking up. Ready to snap."
2. Momentum with Pullback — mid-trend
Find confirmed uptrends that pulled back to a buyable entry. Requires triple timeframe EMA alignment (8 > 21 > 34 > 55 > 89 on Daily AND Weekly AND Monthly = confirmed mega-trend).
| Pullback filter | Purpose |
|---|---|
| SMA50 > EMA200 (D/W/M) | Uptrend on all timeframes |
| Stochastic < 40 | Oscillator oversold (the dip) |
| Within 1 ATR of EMA21 | Not overextended |
| ADX 20–40 | Trending but not exhausted |
Thesis: "Powerful multi-timeframe uptrend, just pulled back to the 21 EMA, stochastic oversold. Perfect dip buy."
Comparison
| Aspect | Squeeze | Momentum Pullback |
|---|---|---|
| Stage | Pre-breakout | Mid-trend |
| Volatility | Compressed | Normal/Expanded |
| Stochastic | Any | < 40 |
| Risk / Reward | Higher / Higher | Lower / Moderate |
| Timeframe | Daily only | Daily + Weekly + Monthly |
Weekly workflow
- Weekend: run Volatility Squeeze → watchlist the coiled names.
- Mon–Fri: monitor for breakouts (volume + close above resistance).
- Mid-week: run Momentum with Pullback → dip entries in live trends.
- Manage: stop below EMA21, trail as trend continues.
- Trend exhausts → name returns to the Squeeze watchlist.
Source
Full guide: MOMENTUM_SQUEEZE_GUIDE.md.
Strategy code lives in the screener project (strategies/momentum.py,
strategies/volatility_squeeze.py) — run via the batch-scanner skill.