Bollinger Squeeze Basic Indicator for MT4 - Free Download [TradingFinder]

The Bollinger Squeeze Basic indicator is built upon the concept of the "squeeze". When Bollinger Bands contract inside the Keltner Channel, it indicates a temporary drop in volatility and a potential beginning of a strong price move.

In this trading tool, squeeze signals and price momentum are displayed as dots and colored bars in the MT4 oscillator window.

Bollinger Squeeze Basic Indicator Table

The table below outlines the specifications of the Bollinger Squeeze Basic indicator on the MetaTrader 4 platform.

Overview of Bollinger Squeeze Basic

Once the squeeze phase ends and Bollinger Bands break out of the Keltner Channel, a strong price movement typically follows.

Buy and sell trade zones are identified as follows:

• Blue Dots: Indicate the activation of the squeeze phase and the potential start of a new trend;
• Red Dots: Indicate the absence of a squeeze condition;
• Green Momentum Bars: Indicate strengthening of bullish momentum;
• Red Momentum Bars: Indicate acceleration of bearish momentum.

Indicator in an Uptrend

The image below shows the XRP chart on a 1-hour timeframe. When blue dots appear on the oscillator, it signals that the market has entered a squeeze phase, indicating low volatility and preparation for a decisive move.

Simultaneously, green histogram bars begin to appear and the momentum index shifts to the positive zone, highlighting a potential buy entry opportunity.

Indicator in a Downtrend

The chart below illustrates the GBP/CAD currency pair on a 4-hour timeframe. In this trading tool, the appearance of blue dots indicates the initiation of a squeeze, while the red histogram bars below the zero line reflect growing bearish pressure.

Bollinger Squeeze Basic Indicator Settings

The image below shows the settings panel of the Bollinger Squeeze Basic indicator:

• Bollinger Bands Period: Bollinger Band timeframe;
• Bollinger Bands Deviation: Bollinger Band standard deviation;
• Keltner Channel Period: Keltner Channel timeframe;
• Keltner Channel Factor: Keltner Channel multiplier;
• Momentum Period: Momentum calculation period.
• Message Alert: Text alert;
• Sound Alert: Audio alert.

Conclusion

The Bollinger Squeeze Basic indicator identifies price compressions through the overlap of Bollinger Bands and the Keltner Channel, while using momentum direction and strength to validate potential upward or downward moves.

This trading tool is ideal for detecting breakout opportunities supported by trend momentum.