Bollinger Bands Squeeze - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

The Bollinger Bands Squeeze is one of the most powerful and popular signals when using the Bollinger Bands indicator. It signals the end of a period of low market volatility and heralds large price swings.

Technical analysis indicators consist of three lines:

Middle band: 20-period simple moving average (SMA).

Upper band: Middle band + (2 x standard deviation).

Lower band: Middle band - (2 x standard deviation).

The upper and lower limits expand and contract based on market fluctuations.

A Bollinger Band squeeze occurs when the upper and lower Bollinger Bands contract and move closer together. This shows:

The market is in a "consolidating" or quiet phase.

Price volatility is extremely low.

Buying and selling pressure is in balance.

Visually, the bands coiling tightly resembles a squeeze, compressing the market's energy and tension.

“The tighter the squeeze, the bigger the swings.” When the bands start expanding again after the squeeze, it’s a clear sign:

The integration phase is over.

A new, powerful trend is about to begin.

Price will "break out" of the trading range with high momentum.

A squeeze only warns of impending volatility; it does not predict direction.

The direction of the breakout (up or down) must be confirmed using:

Transaction volume increased dramatically.

Other technical signals (candlestick patterns, RSI, etc.).

In summary, the Bollinger Bands Squeeze is an excellent tool for determining when the market is “calm before the storm.” When a squeeze is detected, traders should be prepared for large price moves.

Attachment download

📎 Bollinger_bands_squeeze.mq5 (11.55 KB)

📎 Bollinger_Squeeze_Advanced.mq5 (15.69 KB)

Source: MQL5 #65117