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Bearish Bollinger Squeeze: definition and measured success rate

Data as of 31.07.2026 · back-test since 09/2020

A bearish Bollinger squeeze occurs when the Bollinger Bands narrow to an unusually tight range and price then breaks down below the lower band region. Volatility compression resolves into a downward expansion. In chartval's back-test, it worked in 44 of 100 comparable cases (6,086 occurrences).

Schematic chart of the bearish bollinger squeeze pattern

How does a bearish bollinger squeeze form?

After weeks of shrinking ranges the bands contract to a percentile-low width. Energy builds while direction stays open. The signal exists only once price leaves the compression downward — the same mechanics as the bullish case, mirrored.

How reliable is the bearish bollinger squeeze?

In chartval's historical back-test across 274 stocks, ETFs and cryptocurrencies, the bearish bollinger squeeze reached a 5 percent move in the signal direction before a 5 percent counter-move in 44 of 100 cases (6,086 occurrences evaluated since 09/2020; data as of 31.07.2026). Past statistics are not a reliable indicator of future results.

All market phases44 of 100 · 6,086 cases
In an uptrend41 of 100 · 671 cases
In a downtrend41 of 100 · 525 cases
In a sideways market44 of 100 · 4,890 cases

Measurement: a case counts as a hit when price moved 5 percent in the signal direction before moving 5 percent against it, based on closing prices, within a maximum of 120 candles after the trigger.

How chartval detects the pattern

chartval measures band width against its own recent history (percentile-based rather than a fixed threshold) and confirms only fresh downward breakouts from a genuine squeeze. chartval scans 274 stocks, ETFs and cryptocurrencies daily; every signal names an entry, a target and the level at which the setup is invalidated.

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Note: All content on chartval is technical-analysis information, not investment advice and not a recommendation to buy or sell. Trading securities and crypto assets involves risk up to total loss. Past pattern statistics are not a reliable indicator of future results.