Source: Bollinger Bands Trading Strategies. The upper band is two standard deviations from the moving average, while the lower band is two standard deviations from the moving average. It comprises three lines in which the middle line is a 20 periods simple moving average.
John Bollinger developed the Bollinger Bands indicator in the 1980s. It's one of the widely used indicators that helps with the technical analysis by Forex traders. The white dots represent the period of high volatility when Bollinger Bands are outside the Keltner channels.The gray dots represent the period of low volatility when Bollinger Bands are inside the Keltner channels.Similarly, we can go short when Bollinger bands come out from Keltner channels and the momentum oscillator is below the zero line. Using this methodology, we can go long when Bollinger Bands come out from Keltner channels and the momentum oscillator is above the zero line. Similarly, a short breakout will likely occur when Bollinger Bands expand outside the Keltner Channels and increase momentum with a Downtrend in the market. Conversely, if Bollinger Bands are outside the Keltner channels, the market will likely be in a trending and high volatility phase.Īccording to John Carter, The TTM squeeze happens in a sideways market when Bollinger Bands squeeze inside the Keltner channels.Ī long breakout will likely occur when Bollinger Bands expand outside the Keltner Channels and increase momentum with an Up trend in the market. If Bollinger Bands are inside the Keltner channels, the market will likely be in a phase of the sideways market and low volatility. John Carter's book Mastering the Trade reveals a simple way to determine volatility contraction (squeezing) and expansion using the Bollinger Bands and Keltner channels. Markets tend to move from a period of low volatility to high volatility and vice-versa. The rest of the input parameters are self-explanatory.Alerts for Fading Momentum (Exits): If true, the indicator will send the alerts when momentum starts decreasing.Draw Signal Lines: If true, the indicator will plot the vertical line on each buy/sell signal.Keltner Channels Multiplication: the multiplier for the Keltner channels.Keltner Channels Period: The period to calculate the Keltner channels.Bollinger Bands Deviation: The standard deviations for the Bollinger Bands.Bolling Bands Period: The period for the Bolling Bands calculation.Momentum Period: The period that decides the momentum detection.History Bars: The number of history bars for the indicator calculation.All kinds of Metatrader alerts for entries and exits (fading momentum).BB Squeeze offers a more straightforward trading experience, with entry signals and trend assessment in the same indicator.Provide optimal results in every time frame.It marks the potential entry points by placing vertical lines when the entry conditions match.
#Squeeze momentum indicator full
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