Bollinger Bands Squeeze — Indicator by PoshTrader

source:

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.

Disclaimer

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Want to use this script on a chart?

study("BB Squeeze", scale=scale.right, overlay=true)

//--- Keltner
kLength = input(20, title="Keltner Lenght")
kN = input(1.5, title="Keltner Deviation")
kUpper = sma(close,kLength) + kN*atr(kLength)
kLower = sma(close,kLength) - kN*atr(kLength)

//--- Bollinger
bbLength = input(20, title="Bollinger Length")
bbN = input(2, title="Bollinger Deviation")
bbUpper = sma(close,bbLength) + bbN*stdev(close,bbLength)
bbLower = sma(close,bbLength) - bbN*stdev(close,bbLength)

//--- BB Squeeze
squeeze = bbUpper <= kUpper and bbLower >=kLower

//--- Plots
plot(bbUpper, title="Upper Band")
plot(bbLower, title="Lower Band")

//--- Fill
a = plot(squeeze?bbUpper:na, style=linebr, color=n?na:white, title="Squeezed Upper Band")
b = plot(squeeze?bbLower:na, style=linebr, color=n?na:white, title="Squeezed Lower Band")
fill(a,b, color=yellow, transp=30, title="Squeezed Area")