OPEN-SOURCE SCRIPT
Updated BKSqueeze
This is a price volatility compression and expansion indicator that uses the ratio of the Bollinger Band and Keltner Ratio.
Red segments indicate extreme price volatility compression that can be ideal entry points for stock/futures/forex and/or options positions.
Aqua segments indicate price volatility is expanding.
Blue segments indicate price volatility is compressing - can be used as an exit point or partial scale out point.
Note that the indicator doesn't indicate direction. One suggestion is to use the DMI indicator for this purpose - really depends on how early you enter the trade.
Suggest using a time period of 15 bars for volatile stocks, such as TSLA for example, otherwise a period of 20 bars suits most stocks/futures/forex symbols.
Red segments indicate extreme price volatility compression that can be ideal entry points for stock/futures/forex and/or options positions.
Aqua segments indicate price volatility is expanding.
Blue segments indicate price volatility is compressing - can be used as an exit point or partial scale out point.
Note that the indicator doesn't indicate direction. One suggestion is to use the DMI indicator for this purpose - really depends on how early you enter the trade.
Suggest using a time period of 15 bars for volatile stocks, such as TSLA for example, otherwise a period of 20 bars suits most stocks/futures/forex symbols.
Release Notes
Improved in-squeeze calculation - now works for all symbols including forexRelease Notes
Updated for consistencyRelease Notes
Overlayed a momentum indicator for direction:Aqua bar indicates uptrend momentum is increasing.
Blue bar indicates uptrend momentum is decreasing.
Red bar indicates downtrend momentum is increasing.
Yellow bar indicates downtrend momentum is decreasing.
Also added early indication of BKRatio squeeze break out:
Orange: BKRatio in squeeze and rising - indicates potential of breakout - early indication to enter prior to breakout.
Red: BKRatio in squeeze and falling or flat - indicates still in squeeze - lower potential of breakout.
Aqua: BKRatio out of squeeze and volatility increasing - initial Aqua segment can be effective entry - depends if using stock, futures or options.
Blue: BKRatio out of squeeze and volatility decreasing - can indicate a potential exit point or scale out point.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.