Bollinger Squeeze Basic Indicator for MT4 - Free Download [TradingFinder]

The Bollinger Bands Squeeze basic indicator is built on the following concept: "squeeze" . When the Bollinger Bands contract within the Keltner Channel, it signals a temporary decrease in volatility and the start of a strong price move.

In this trading tool , squeeze signals and price momentum are displayed as dots and colored bars in the MT4 Oscillator window.

Bollinger Bands Squeeze Basic Indicator Table

The table below outlines the specifications of the Bollinger Bands Squeeze basic indicator on the MetaTrader 4 platform.

Bollinger Bands Squeeze Basics Overview

Once the squeeze phase ends and the Bollinger Bands break out of the Keltner Channel, strong price action usually occurs.

The identification of buying and selling trade zones is as follows:

• Blue Dots: Indicates the activation of the squeeze phase and the potential start of a new trend;
• Red Dots: Indicates that there is no squeeze situation;
• Green Momentum Bar: Indicates increasing bullish momentum;
• Red Momentum Bars: Indicates bearish momentum accelerating.

Indicators are in an upward trend

The image below shows the XRP chart on the 1 hour time frame. When a blue dot appears on an oscillator, it indicates that the market has entered a squeeze phase, signaling lower volatility and preparation for decisive action.

At the same time, green bars began to appear and the momentum index turned into positive territory, highlighting potential buying opportunities.

Indicators are in a downward trend

The chart below shows the GBP/CAD currency pair on the 4-hour time frame. In this trading tool, the appearance of blue dots indicates the beginning of a squeeze, while the red bars below the zero line reflect growing bearish pressure.

Bollinger Bands Squeeze Basic Indicator Settings

The image below shows the settings panel of the Bollinger Bands Squeeze basic indicator:

• Bollinger Bands Cycle: Bollinger Bands Timetable;
• Bollinger Band Deviation: Bollinger Band Standard Deviation;
• Keltner Channel Cycle: Keltner Channel Timetable;
• Keltner channel factor: Keltner channel multiplier;
• Momentum Period: momentum calculation period;
• Message Alert: Text alert;
• Sound Alert: Audio alert.

Conclusion

The Bollinger Bands Squeeze basic indicator identifies price compression through the overlap of the Bollinger Bands and Keltner Channel, while using momentum direction and strength to validate potential upward or downward moves.

This trading tool is great for spotting breakout opportunities supported by trend momentum.