MT5 Bollinger Bands Squeeze Basic Indicator - Free Download [TradingFinder] - MetaTrader 5 Resources

The Bollinger Bands Squeeze basic indicator is built on the concept of market compression. When Bollinger Bands fall within the channels of the Keltner indicator, it may indicate a short-term decline in volatility and the potential for strong price action.

This technical analysis tool visualizes squeeze conditions and volatility changes through colored bars and dots in the oscillator window.

Bollinger Bands Squeeze Basic Indicator Table

The specifications of the Bollinger Bands Squeeze basic indicator for MetaTrader 5 are shown in the table below.

Bollinger Bands Squeeze Basics Overview

In the Bollinger Bands Squeeze Basic Indicator, after the squeeze phase ends, the Bollinger Bands break out again, generating buy/sell entry signals based on the color of the points and bars, as shown below:

• Blue Dots: Indicates the beginning of a squeeze phase and a higher probability of forming a new trend;
• Red Dots: Indicates that the market is no longer compressed and lacks price pressure;
• Green Bars: Indicates increasing bullish momentum and increased buying pressure;
• Red Bars: Indicates an intensification of the bearish trend and increasing selling pressure.

Indicators are in an upward trend

The chart below shows the GBP/JPY currency pair on a 30-minute time frame. In this oscillator, the appearance of blue dots indicates entry into the squeeze phase and reduced volatility.

At the same time, a green momentum bar appears, and the momentum index enters the positive zone, forming a potential buying entry area.

Indicators are in a downward trend

The chart below shows the AUD/JPY currency pair on the 4-hour time frame. In this trading tool, the presence of blue dots indicates the onset of compression and a reduction in volatility.

Meanwhile, the red momentum bar below the zero line reflects increasing selling pressure and a strengthening bearish trend.

Bollinger Bands Squeeze Basic Indicator Settings

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

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

Conclusion

The Bollinger Bands Squeeze Basic Indicator utilizes a combination of Bollinger Bands and the Momentum Index to identify price squeeze phases by analyzing the overlap between Bollinger Bands and Keltner Channels.

Additionally, it analyzes the direction and strength of momentum to show the likelihood of a bullish or bearish move.