A squeeze usually refers to a technical setup that is based on the assumption that volatility is cyclical and that periods of extremely quiet are followed by periods of violent moves. It is usually the case that the market is consolidating when the volatility drops and trending when the volatility picks up. In extreme cases, the volatility drops to such a low level that there is a “squeeze” in price action. A breakout from this squeeze is both a decision on a direction, and a possible kick off to an increase in volatility qualities that are attractive if you are in the right side of the market. The squeeze is therefore sometimes seen as the “calm before the storm”.
Read about a case study of the Squeeze here: