Volatility Squeeze Bollinger Keltner MT4
- 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. This is the visual logic of our Bitcoin Coil EA.
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.
=== THE SAME LOGIC AS AN EA ===
Bitcoin Coil Squeeze Breakout — the Expert Advisor that trades exactly this squeeze release on BTCUSD, with a hard stop-loss on every trade, an ATR trailing stop, one position, no martingale and no grid. Profit factor 3.59, maximum equity drawdown 21.4%, 57 trades over 8 years — few trades, because it waits for compression.
Bitcoin Glacier Daily Trend (BTCUSD D1) — profit factor 2.40, maximum equity drawdown 47%, but only 28 trades in 8 years. Read that trade count before you judge the profit factor.
Both EAs lose money when the market ranges. That is what breakout trading is.
More free tools from us:
- Donchian Trend Engine (EA): https://www.mql5.com/en/market/product/185534
- Donchian Channel + ATR Trailing Stop (indicator): https://www.mql5.com/en/market/product/185547
- Crypto Trend Channel (indicator): https://www.mql5.com/en/market/product/185642
- Pivot Trend (indicator): https://www.mql5.com/en/market/product/185643
- Dip Buyer Zones (indicator): https://www.mql5.com/en/market/product/185644
All our products: https://www.mql5.com/en/users/app.develop.sk/seller
If it is useful, a review helps us more than anything else.
