This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
The Bollinger bands squeeze is a volatility indicator that tries to determine periods of low or high volatility in a price series. This technical indicator signals only the timing, not the direction of the trade, and for this reason, it must be used in conjunction with other technical or fundamental indicators. It is based on the idea that very low volatility periods are often followed by big moves in stock prices.
This volatility indicator is built based on the Keltner channels (average true range) and the Bollinger bands. It signals a period of low volatility (squeeze) when the low Bollinger band is higher than the low Keltner channel and the higher Bollinger band is lower than the high Keltner channel (Bar are colored in Red). The periods of high volatility are colored in Green.
How to plot the BB Squeeze trading indicator:
a = BBSqueeze(8);
=> "8" is a period passed to the function and it is the period of the exponential moving average used by the Bollinger Bands and Keltner Channel indicators.
