OPEN-SOURCE SCRIPT
Bollinger Band Width Oscillator %
🧠 Bollinger Band Width Oscillator %
The Bollinger Band Width Oscillator % is a volatility-focused tool that measures the relative width of Bollinger Bands and transforms it into an oscillator format. It helps traders visualize volatility expansions and contractions directly in an indicator pane — a powerful way to anticipate breakout or consolidation phases.
🔍 How It Works
Band Width %: Calculates the percentage distance between the upper and lower Bollinger Bands relative to the basis (SMA).
Smoothed Output: The raw bandwidth is smoothed using a moving average for cleaner, more stable signals.
Dynamic Volatility Zones: The script automatically computes average, high, and low volatility thresholds — each dynamically adapting to market conditions.
User-Adjustable Multipliers: Control how sensitive your high/low zones are with the High Zone Multiplier and Low Zone Multiplier inputs.
⚙️ Key Features
📊 Oscillator Format – Easy-to-read visualization of volatility compression and expansion.
🔥 High/Low Volatility Detection – Automatic labeling and color-coded alerts for shifts in volatility.
🧩 Dynamic Thresholds – Zones adjust automatically with market activity for adaptive sensitivity.
🧠 Hysteresis Logic – Prevents rapid signal flipping, improving clarity and reliability.
🎨 Custom Visuals – Adjustable smoothing and background highlights for quick interpretation.
📈 Trading Applications
Identify Breakouts: Rising bandwidth often precedes price breakouts.
Spot Consolidations: Low bandwidth indicates tightening volatility and potential range trades.
Volatility Regime Analysis: Understand market rhythm and adapt strategies accordingly.
⚡ Inputs
Parameter Description
Band Length Period for Bollinger Band calculation
Band Multiplier Standard deviation multiplier for the bands
Source Price source (default: close)
Smoothing Period for smoothing the oscillator line
High Zone Multiplier Adjusts the high-volatility threshold
Low Zone Multiplier Adjusts the low-volatility threshold
Highlight Volatility Zones Optional background color overlay
🧊 Usage Tip
Combine this indicator with momentum tools or price action analysis to confirm trade setups. Watch for transitions from low to high volatility zones — these often signal the beginning of major market moves.
The Bollinger Band Width Oscillator % is a volatility-focused tool that measures the relative width of Bollinger Bands and transforms it into an oscillator format. It helps traders visualize volatility expansions and contractions directly in an indicator pane — a powerful way to anticipate breakout or consolidation phases.
🔍 How It Works
Band Width %: Calculates the percentage distance between the upper and lower Bollinger Bands relative to the basis (SMA).
Smoothed Output: The raw bandwidth is smoothed using a moving average for cleaner, more stable signals.
Dynamic Volatility Zones: The script automatically computes average, high, and low volatility thresholds — each dynamically adapting to market conditions.
User-Adjustable Multipliers: Control how sensitive your high/low zones are with the High Zone Multiplier and Low Zone Multiplier inputs.
⚙️ Key Features
📊 Oscillator Format – Easy-to-read visualization of volatility compression and expansion.
🔥 High/Low Volatility Detection – Automatic labeling and color-coded alerts for shifts in volatility.
🧩 Dynamic Thresholds – Zones adjust automatically with market activity for adaptive sensitivity.
🧠 Hysteresis Logic – Prevents rapid signal flipping, improving clarity and reliability.
🎨 Custom Visuals – Adjustable smoothing and background highlights for quick interpretation.
📈 Trading Applications
Identify Breakouts: Rising bandwidth often precedes price breakouts.
Spot Consolidations: Low bandwidth indicates tightening volatility and potential range trades.
Volatility Regime Analysis: Understand market rhythm and adapt strategies accordingly.
⚡ Inputs
Parameter Description
Band Length Period for Bollinger Band calculation
Band Multiplier Standard deviation multiplier for the bands
Source Price source (default: close)
Smoothing Period for smoothing the oscillator line
High Zone Multiplier Adjusts the high-volatility threshold
Low Zone Multiplier Adjusts the low-volatility threshold
Highlight Volatility Zones Optional background color overlay
🧊 Usage Tip
Combine this indicator with momentum tools or price action analysis to confirm trade setups. Watch for transitions from low to high volatility zones — these often signal the beginning of major market moves.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.