Bollinger Bands Squeeze

coder: mladen
date: October 5, 2018


Theory:

According to idea, Bollinger bands squeeze detect the periods of "no entry" zones by using the Bollinger bands and Keltner combined. When the Bollinger bands are within Keltner channel, then the "squeeze" is happening and then one should not enter a new position.The idea behind this is that the deviation from a moving average is smaller than the average true range in the times when the markets turn flat, and is usually happening at the times when imminent changes in the market.

This version:

There are few versions of the BB squeeze indicator, but they are combined with some other indicators (not related to either Bollinger bands or Ketner channel). This version uses only the original indicators and is, unlike some oscillators, showing its state on the main chart.

Usage:

When there is a "squeeze" going on, the indicator fills the bands zone with gray color. That means that you should not enter a new order in that time. When the zone is clear, it shows the relative position of close price compared to the middle value of Bollinger bands and also shows bands breakouts of the close price.


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Download:

Bollinger bands squeeze.mq5

I found that indicator at mql5 forum , but it has many compile error !

Can anybody fix it ?

thanks in advanced !

macd & rsi wrote: Thu May 02, 2024 12:39 am I found that indicator at mql5 forum , but it has many compile error !

Can anybody fix it ?

thanks in advanced !

You probably need this updated SmoothAlgorithims in your include files.

G-Channells with extended moving averages type and an experiment in oscillator form:

From Mladen Rakic:

Bollinger Bands consist of a N-period Moving Average (MA), an Upper Band at K times an N-period standard deviation above the Moving Average (MA + Kσ), and a Lower Band at K times an N-period standard deviation below the Moving Average (MA − Kσ).

This version does not use standard deviation for Upper and Lower Bands, but uses the EMA deviation. That makes it faster in the response to market volatility.

mrtools wrote: Thu Feb 27, 2025 8:58 pm From Mladen Rakic:

Bollinger Bands consist of a N-period Moving Average (MA), an Upper Band at K times an N-period standard deviation above the Moving Average (MA + Kσ), and a Lower Band at K times an N-period standard deviation below the Moving Average (MA − Kσ).

This version does not use standard deviation for Upper and Lower Bands, but uses the EMA deviation. That makes it faster in the response to market volatility.

Hi mrtool,
Why I set MA to SMA, it's not the same as standard BB.

phnthnhnm wrote: Mon Mar 03, 2025 12:31 am Hi mrtool,
Why I set MA to SMA, it's not the same as standard BB.

Hello, yes, the only thing that would be the same is the center moving average the outer bands are different due to the ema deviation.

mrtools wrote: Wed Aug 17, 2022 6:04 am From Mladen Rakic:

Williams %R, WPR, or just %R, is a technical analysis oscillator showing the current closing price in relation to the high and low of the past N days (for a given N). It was developed by a publisher and promoter of trading materials, Larry Williams. Its purpose is to tell whether a stock or commodity market is trading near the high or the low, or somewhere in between, of its recent trading range.

The oscillator is on a negative scale, from −100 (lowest) up to 0 (highest), obverse of the more common 0 to 100 scale found in many Technical Analysis oscillators. A value of −100 means the close today was the lowest low of the past N days, and 0 means today's close was the highest high of the past N days. (Although sometimes the %R is adjusted by adding 100.)

This version of Williams Percent Range has an addition of Bollinger bands to help identify possible overbought and oversold levels breaks.

maybe somebody has (mtf and some ma new included) a new version of this ?

alexm wrote: Wed Mar 05, 2025 6:30 pm maybe somebody has (mtf and some ma new included) a new version of this ?

A moving average for the bollinger bands?

mtf would be enough.. thank you.