Login Page - Create Account

Technical Studies Reference


Bollinger Squeeze

This study calculates and displays a Bollinger Squeeze of the First Type for the data specified by the Input Data Input. The calculations of this study include calculations of Bollinger Bands and Keltner Bands. See those studies for an explanation of the notation used here.

The Inputs are denoted as follows. \(X\) is the Input Data, \(n_B\) is the Bollinger Bands Length, \(v_B\) is the Bollinger Bands Multiplier, \(n_K\) is the Keltner Bands Length, \(n_{\overline{TR}}\) is the Keltner True Range MovAvg Length, and \(v_K\) is the Keltner Bands Multiplier. Note that both the Top and Bottom Keltner Bands have the same Multiplier Input, unlike in the Keltner Channel study. The moving average types for the Bollinger Bands, the Average True Range, and the Keltner Bands are all controlled via the Moving Average Type for Internal Calculation Input.

This study displays two Subgraphs for \(t \geq \max\{n_B,n_K,n_{\overline{TR}}\} - 1\): The Bands Ratio and the Squeeze Indicator.

The Bands Ratio at Index \(t\) is denoted as \(BR_t(X,n_B,v_B,n_K,n_{\overline{TR}},v_K)\), and it is computed as follows.

\(\displaystyle{BR_t(X,n_B,v_B,n_K,n_{\overline{TR}},v_K) = \frac{TB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K) - BB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K)}{TB_t^{(B)}(X,n_B,v_B) - BB_t^{(B)}(X,n_B,v_B)} - 1}\)

The Bands Ratio Subgraph is displayed as a bar graph that is colored as follows.

  • \(BR_t(X,n_B,v_B,n_K,n_{\overline{TR}},v_K) \geq 0 \Rightarrow\) Green
  • \(BR_t(X,n_B,v_B,n_K,n_{\overline{TR}},v_K) < 0 \Rightarrow\) Red

The Squeeze Indicator is plotted at the zero line. By default, this Subgraph is displayed as a sequence of points that are colored as follows.

  • \(TB_t^{(B)}(X,n_B,v_B) > TB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K)\) and \(BB_t^{(B)}(X,n_B,v_B) < BB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K) \Rightarrow\) Green
  • \(TB_t^{(B)}(X,n_B,v_B) \leq TB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K)\) or \(BB_t^{(B)}(X,n_B,v_B) \geq BB_t^{(K)}(X,n_K,n_{\overline{TR}},v_K) \Rightarrow\) Red

Inputs

Spreadsheet

The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through File >> Open Spreadsheet.

Bollinger_Squeeze.221.scss


*Last modified Monday, 04th March, 2019.