OPEN-SOURCE SCRIPT
Bollinger Squeeze Breakout + Volume
A volatility contraction often precedes a volatility expansion. When Bollinger Bands narrow significantly, it signals that the market has entered a period of low energy, and low energy rarely lasts. This strategy is built around that principle: it waits for a genuine squeeze, then enters only when price breaks out of the bands with volume confirming that the move has real participation behind it, not just noise.
The logic
A squeeze is identified when the Bollinger Band width (the distance between the upper and lower bands relative to price) falls below its own recent average,meaning volatility is unusually compressed compared to the recent past. Once that condition is met, the strategy watches for price to close outside either band. A long entry triggers when price closes above the upper band during a squeeze, confirmed by volume exceeding its 20-period average. A short entry triggers under the mirrored condition on the lower band. Stops and targets are based on ATR, since the appropriate distance for both should scale with the market's actual movement at the time of entry, not a fixed number.
This approach tends to filter out the false breakouts that occur during already-volatile, choppy conditions, since the entry only fires after a genuine period of compression, which is when breakouts have historically had more follow-through.
Notes on use
The squeeze threshold and lookback length are the two inputs worth tuning per instrument, a 50-period lookback works reasonably well on daily and 4-hour charts, but lower timeframes may benefit from a shorter lookback to react faster to genuine volatility shifts. As with any breakout strategy, backtest across both trending and range-bound periods before drawing conclusions, since this approach is built specifically to perform during regime transitions and may underperform in markets that stay range-bound for extended periods without ever truly compressing.
This is shared for educational and discussion purposes. As always, backtest thoroughly on your own instruments and timeframes, and treat this as a starting framework rather than a finished system. Feedback and variations are welcome in the comments.
The logic
A squeeze is identified when the Bollinger Band width (the distance between the upper and lower bands relative to price) falls below its own recent average,meaning volatility is unusually compressed compared to the recent past. Once that condition is met, the strategy watches for price to close outside either band. A long entry triggers when price closes above the upper band during a squeeze, confirmed by volume exceeding its 20-period average. A short entry triggers under the mirrored condition on the lower band. Stops and targets are based on ATR, since the appropriate distance for both should scale with the market's actual movement at the time of entry, not a fixed number.
This approach tends to filter out the false breakouts that occur during already-volatile, choppy conditions, since the entry only fires after a genuine period of compression, which is when breakouts have historically had more follow-through.
Notes on use
The squeeze threshold and lookback length are the two inputs worth tuning per instrument, a 50-period lookback works reasonably well on daily and 4-hour charts, but lower timeframes may benefit from a shorter lookback to react faster to genuine volatility shifts. As with any breakout strategy, backtest across both trending and range-bound periods before drawing conclusions, since this approach is built specifically to perform during regime transitions and may underperform in markets that stay range-bound for extended periods without ever truly compressing.
This is shared for educational and discussion purposes. As always, backtest thoroughly on your own instruments and timeframes, and treat this as a starting framework rather than a finished system. Feedback and variations are welcome in the comments.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.