Poshtraderltd

(Poshtrader) Bollinger Band Squeeze

The Bollinger Band Squeeze is a trading strategy designed to find consolidations with decreasing volatility . In its simplest form, this strategy is neutral and the ensuing break can be up or down. Traders, therefore, must employ other aspects of technical analysis to formulate a trading bias to act before the break or confirm the break. Acting before the break will improve the risk-reward ratio.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Thank you for this script. What define a squeeze in this script? Bollinger describes it as band width being at its 6 month low. It seems to be different with your script so Im trying to better understand it.

Thank you
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