The Bollinger Band Squeeze strategy identifies periods of compressed volatility — when Bollinger Bands contract inside Keltner Channels, forming a "squeeze." The theory is that low volatility precedes high volatility, so a squeeze signals an impending explosive move. The strategy waits for the squeeze to release (BB expanding outside KC), then enters in the direction indicated by the MACD histogram. If MACD is positive, it goes long; if negative, it goes short. Across 1,642 trades over 5 years, this produced a 40% win rate and a -75% cumulative loss. The primary failure mode is directional accuracy — the MACD histogram is not a reliable predictor of breakout direction on hourly candles. Many squeezes resolve with a false breakout in one direction before reversing. A significant data quality issue also emerged: 798 trades (nearly half) had low quality scores, suggesting the squeeze detection criteria were triggering on noisy data rather than genuine volatility contractions. The squeeze concept has merit — it correctly identifies periods of compressed volatility. The directional component needs a different approach, perhaps waiting for price to break a range rather than relying on MACD, or using the first candle after the squeeze releases to determine direction.