Strategy using the Bollinger band with the Keltner Channels . Watch for the Bollinger bands (blue/red lines) squeezing inside the Keltner Channels (pink dots) for a breakout - this could be up or down so use in conjunction with other indicators.
The blue band is the 2 standard deviation from price, the red is 3 standard deviations. With these, typically if the price bounces off the red then it will retrace a little, (although if there is a massive breakout/down this may not hold). When the bands narrow this is an indicator of consolidation, therefore with a likely upcoming breakup or down.
The pink dots are the Keltner Channels. The strategy says if the bollinger bands come inside the Keltner Channels then this is a strong indicator that the breakout is coming. Sometimes the length of time the squeeze occurs for is indicative of the length/strength of the breakout.
These indicators can be used on all timeframes but higher timeframes will be stronger and more reliable of a trend change.
リリースノート
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New version - minor change to an incorrect title. No change to function of script.
Strategy using the Bollinger band with the Keltner Channels . Watch for the Bollinger bands (blue/red lines) squeezing inside the Keltner Channels (pink dots) for a breakout - this could be up or down so use in conjunction with other indicators.
The blue band is the 2 standard deviation from price, the red is 3 standard deviations. With these, typically if the price bounces off the red then it will retrace a little, (although if there is a massive breakout/down this may not hold). When the bands narrow this is an indicator of consolidation, therefore with a likely upcoming breakup or down.
The pink dots are the Keltner Channels . The strategy says if the bollinger bands come inside the Keltner Channels then this is a strong indicator that the breakout is coming. Sometimes the length of time the squeeze occurs for is indicative of the length/strength of the breakout.
These indicators can be used on all timeframes but higher timeframes will be stronger and more reliable of a trend change.
リリースノート
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Just cleaning up the chart so it can be seen better!
What do you recommend for alert conditions for long entry and exit?
Trader-Elisa
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@bsinclair2076, hitting 3 standard deviations on the bands is a good signal for short term long or short if you’re quick off the mark. The squeeze is tougher as it indicates breakout is coming but not when or which direction...so I use in conjunction with other indicators like previous S/R, overbought/sold RSI, waves or EMA crosses.
FreakChamp
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@Trader-Elisa, I am into crypto, so looking for something that can i can use in conjunction with price action (S&R Level). What are your thoughts over the same? Thankyou for great work.
Trader-Elisa
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@FreakChamp, hi, tbh I've pretty much stopped using indicators now, long since I wrote this script! I trade supply and demand zones pretty much exclusively these days.
Skipper86
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nice script
heryyanto7702
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Hi Elisa
Is this script could be used for screening/ explorer to find a bunch another squeeze stock ?
xansibar
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Excited to try this indicator. Thanks for sharing it!