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Description

This study calculates and displays a Bollinger Squeeze of the Third Type for the data specified by the Input Data Input.

Let \(X\), \(n\), \(v_{MA}\), and \(v_{\sigma}\) denote the Input Data, Study Length, Moving Average Multiplier, and Standard Deviation Multiplier Inputs, respectively.

This study displays two Subgraphs for \(t \geq 0\): The Ratio and the Squeeze Indicator.

The Ratio at Index \(t\) is denoted as \(R_t(X,n,n_{MA},n_{\sigma})\), and we compute it in terms of the Standard Deviation and the Average True Range as follows.

The moving average type for the Average True Range is controlled via the Moving Average Type for Calculation Input. By default, the Ratio is displayed as a bar graph.

• \(R_t(X,n,n_{MA},n_{\sigma}) \geq 1 \Rightarrow\) Green
• \(R_t(X,n,n_{MA},n_{\sigma}) < 1 \Rightarrow\) Red