Bollinger Squeeze Basic Indicator for MT5 - Free [TFlab]

The Bollinger Squeeze Basic indicator MT5 is based on the principle of market compression, utilizing the interaction between Bollinger Bands and the Keltner Channel to identify periods of low volatility. When Bollinger Bands fall within the Keltner Channel, it suggests a temporary decline in market volatility, often preceding a significant price movement.


You can download it from this link:

https://cdn.tradingfinder.com/file/4...5-by-tflab.zip

You can also access the MetaTrader 4 version of this Indicator through this page:

https://www.forexfactory.com/thread/...r-for-mt4-free

For instructions on how to install:

https://www.forexfactory.com/thread/...-in-metatrader

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Indicator Overview

1. Platform: MetaTrader 5
2. Functionality: Highlights volatility compression zones and potential breakout opportunities
3. Categories:
   1. Oscillators
   2. Momentum indicators
   3. Breakout detection tools
   4. Trading assist indicators

4. Timeframes: Multi-timeframe compatibility
5. Instruments: Forex, cryptocurrency, and stock markets
6. Trading Style: Suitable for intraday and short-term strategies
7. Skill Level: Elementary

How the Bollinger Squeeze Basic Indicator Works

When the squeeze phase concludes and Bollinger Bands move beyond the Keltner Channel, the indicator generates directional signals. These are based on the combination of dot color (squeeze condition) and bar color (momentum direction):

1. Blue Dots: Indicate entry into the squeeze phase, often preceding trend formation
2. Red Dots: Reflect the end of compression; no active squeeze condition present
3. Green Bars: Show strengthening bullish momentum and rising buying interest
4. Red Bars: Indicate intensifying bearish pressure and growing selling momentum

Bullish Scenario: Indicator in an Uptrend

On a 30-minute GBP/JPY chart, the emergence of blue dots signals the beginning of a low-volatility squeeze phase. As green bars start forming and the momentum index transitions into positive territory, this reflects a rise in bullish pressure, providing a potential buy opportunity.

Bearish Scenario: Indicator in a Downtrend

On the 4-hour AUD/JPY chart, blue dots indicate reduced volatility and the start of a compression phase. Simultaneously, red histogram bars appear below the zero line, signaling growing bearish momentum and possible sell conditions.


Indicator Settings and Inputs

The Bollinger Squeeze Basic indicator allows for parameter customization to suit specific trading preferences:

1. Bollinger Bands Period: Defines the timeframe for Bollinger Band calculations
2. Bollinger Bands Deviation: Adjusts the standard deviation for the bands
3. Keltner Channel Period: Sets the period for the Keltner Channel
4. Keltner Channel Factor: Multiplier for Keltner Channel width
5. Momentum Period: Determines the sensitivity of the momentum calculation
6. Message Alert: Enables on-screen text notifications
7. Sound Alert: Triggers audio signals for squeeze conditions

Conclusion

The Bollinger Squeeze Basic indicator for MT5 effectively combines volatility-based signals with momentum analysis to detect potential breakouts. By identifying phases where Bollinger Bands contract within the Keltner Channel, and confirming with momentum strength, the tool helps traders anticipate bullish or bearish price movements with greater accuracy. This indicator is highly suitable for intraday traders and those seeking to exploit low-volatility breakouts supported by momentum trends.