**** [Edit: New version (v02) posted, see the comments section for the code *****
Simple strategy. You only consider taking a squeeze play when both the upper and lower Bollinger Bands go inside the Keltner Channel. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and a move is about to take place.
I have added more support indicators -- I highlight the bullish / bearish KC breaches (using GREEN/RED crosses) and a SAR to see where price action is trending.
Appreciate any feedback. Enjoy!
Color codes for v02: ---------------------------- When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in RED. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in GREEN. When one of the Bollinger Bands is out of Keltner Channel, no highlighting is done (this means, the background color shows up, so don't get confused if you have RED/GREEN in your chart's bground :))
Color codes for v01: ---------------------------- When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in YELLOW. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in BLUE.
Goodmorning Sir . I am a boy of Italian What follows recently trading and are still being studied and wondered if Your Indicator ( trading strategy based on BB / KC SQUEEZE ) , can work with INDEX ITA40 DAX30 and CAC40 . With graphic hour seems to work fine , I advice to match another indicator to confirm entry to the market , or not ?
thanks for your time and congratulations for the work done by you and most of all for sharing.
Changelog:
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- Fixed the SqzRelease condition (only if both BB lines come out, it is marked as a "release").
- Changed the color codes [RED=>Sqz, GREEN=>Release]
- Updated the default multFactor to be 2
Sample Chart:
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pantheo
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Great work my friend! I love this technique and using it when chance present during the last two years since Fibline recommended it in ST first and at his Gensai blog later. I'll try yours now. The only thing missing now is an automatic database search to publish the squeeze information in advance, before release, in trading instruments and timeframes. I guess could be done easily using even BB% or BB width as criteria when hit the lower levels. All the best to you and yours my friend:-) Panos
LazyBear
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Thx :)
Khanbilalabid
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Hi , Do you have this indicator for MT4
LazyBear
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Nope, sorry. I dont use MT4,
craunico
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Hi Looks like a great indicator. However, what trading platform is it for, TOS?
Thanks
LazyBear
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The code shown above is for TradingView.
craunico
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Thanks, I will sign up for trading view. It looks very interesting. It seems like when I try to use their chart and run my cursor over the chart, all these lines quickly fill the chart up, so I will have to contact support regarding that. Anyway, in your BB/KC squeeze, are you using a standard 20, 2.0 setting for the KC or some ATR MA? Thanks again
LazyBear
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craunico, you are already signed up. To try this indicator, try this:
Open a new chart.
Click on "Pine Script Editor" icon (next to "Indicators" button in the top toolbar). This will open up an editor dialog box.
Clear the default script shown in the editor dialog. Copy/Paste this indicator code - pastebin.com/biVqEdg4
Click on "Save". This should not show any red error messages in the editor dialog bottom pane.
Click on "Add To Chart" button in the editor dialog.
This will add this indicator to your private scripts library. From then, you can add it to any chart by opening the "Indicators" dialog box, going to "My Scripts" and clicking on the indicator name. Hope that helps.
KC uses 20/2 and forms the upper/lower bands by "multiplier * rangeMA"
thanks for your time and congratulations for the work done by you and most of all for sharing.