Bollinger Bandwidth Indicator Trading St

Hey team,

I recently reread John Bollinger's book - Bollinger on Bollinger Bands, and I really liked the idea of ​​bandwidth metrics.

The Bandwidth indicator looks at the spread between the upper and lower BB, with lower spreads indicating a period of low volatility (also known as a BB squeeze). John Bollinger believes that periods of low volatility are followed by periods of high volatility (breakouts).

There are many bandwidth indicators on this forum and I modified one of them to provide an alert (on the chart and in the push) when the bandwidth indicator falls below a certain point value (user defined) for 2 consecutive bars.

Here are a few examples



In the chart above, the Bandwidth indicator dropped to 2 points (yellow area), followed by a 45-point move



In the picture above we have two signals. The first (1) results in a move of 100 pips, the second (2) results in a move of 95 pips.

Hopefully you can see the potential power of this indicator.

Below is a video of the input settings and more examples of indicator operation.



This indicator is not a directional indicator but an early warning sign that something big is about to happen. Combine this with higher time frame analysis and you can develop an excellent strategy. I've provided the MQ4 files because I know the good coders here will add some great features to make this indicator even better.