Volatility Squeeze Bollinger Keltner Compression
- Indicators
-
Kenichiro Sakamoto
I'm Kenichiro Sakamoto, the developer behind FXEA365 — a studio building transparent, rule-based Expert Advisors for MetaTrader 5. - Version: 1.0
FREE — the volatility squeeze: orange dots while the Bollinger band is compressed inside the Keltner channel, and an arrow when the compression releases.
Big directional moves tend to start from low volatility, but a chart does not show "low volatility" directly. This indicator marks it: when the Bollinger band sits fully inside the Keltner channel, volatility is compressed — the squeeze. When the band pushes back outside, the squeeze has released, and the arrow shows the direction the closed bars were already moving.
=== WHAT IT DRAWS ===
- Bollinger band (blue) and Keltner channel (grey, dotted), both computed from closed bars.
- Orange dots on the middle band while the squeeze is on (Bollinger fully inside Keltner).
- A green arrow when the squeeze releases with upward closed-bar momentum, a red arrow with downward momentum.
=== NO REPAINTING ===
Both channels, the squeeze state and the release are computed from closed bars only. An arrow appears on the bar right after the release is confirmed and never moves or disappears later. You can scroll back and trust what you see.
=== SETTINGS ===
- BBPeriod (default 20) / BBDev (2.0): Bollinger band.
- KCPeriod (20) / KCMultATR (1.5): Keltner channel (EMA middle + ATR multiple width).
- ATRPeriod (14).
- MomLookback (4): closed-bar momentum window that decides the arrow direction.
- ShowArrows: turn the release arrows on or off.
Defaults are the classic squeeze configuration. A setting that suits one market rarely transfers to another — watch it on the instrument and timeframe you actually trade.
=== HONEST NOTE ===
This is a visualisation tool, not a signal service. Most squeezes resolve as fakeouts: the release arrow only tells you which way momentum pointed when volatility expanded, not whether the move will continue. In ranging markets the release arrows will not work — compression releases into chop and the move dies immediately. Watch how squeezes resolve on your instrument before you trade the idea, and never trade a release without a stop-loss.
Big directional moves tend to start from low volatility, but a chart does not show "low volatility" directly. This indicator marks it: when the Bollinger band sits fully inside the Keltner channel, volatility is compressed — the squeeze. When the band pushes back outside, the squeeze has released, and the arrow shows the direction the closed bars were already moving.
=== WHAT IT DRAWS ===
- Bollinger band (blue) and Keltner channel (grey, dotted), both computed from closed bars.
- Orange dots on the middle band while the squeeze is on (Bollinger fully inside Keltner).
- A green arrow when the squeeze releases with upward closed-bar momentum, a red arrow with downward momentum.
=== NO REPAINTING ===
Both channels, the squeeze state and the release are computed from closed bars only. An arrow appears on the bar right after the release is confirmed and never moves or disappears later. You can scroll back and trust what you see.
=== SETTINGS ===
- BBPeriod (default 20) / BBDev (2.0): Bollinger band.
- KCPeriod (20) / KCMultATR (1.5): Keltner channel (EMA middle + ATR multiple width).
- ATRPeriod (14).
- MomLookback (4): closed-bar momentum window that decides the arrow direction.
- ShowArrows: turn the release arrows on or off.
Defaults are the classic squeeze configuration. A setting that suits one market rarely transfers to another — watch it on the instrument and timeframe you actually trade.
=== HONEST NOTE ===
This is a visualisation tool, not a signal service. Most squeezes resolve as fakeouts: the release arrow only tells you which way momentum pointed when volatility expanded, not whether the move will continue. In ranging markets the release arrows will not work — compression releases into chop and the move dies immediately. Watch how squeezes resolve on your instrument before you trade the idea, and never trade a release without a stop-loss.
Good Indicator for volatility