Bollinger Bands Width (Breakout Detector)

Bollinger Bands consist of a moving average (Middle) and two standard deviation lines (Upper/Lower). The Width between these bands is a powerful predictor of breakouts.

The system calculates the average width over the past 20 candles:

• 100% means the market volatility is exactly normal
• 50% means the market is very quiet
• 260% means the volatility is 2.6 times higher than usual - this is a massive breakout or crash

How it Works

• Squeeze (Contraction): Bands get narrow. The market is storing energy. Safe for Range Trading.
• Expansion (Bulge): Bands blast open. A major move is occurring. Danger for Range Trading.

Formula

Band_Width = (Upper_Band - Lower_Band)
Average_Width = Average of last 20 Band_Width values

Ratio = Band_Width / Average_Width

Score Logic:
Ratio < 0.50 (50% of normal) → +2 Score (Squeeze/Safe)
Ratio > 1.50 (150% of normal) → -3 Score (Expansion/Danger)

Recommended Settings

• Period: 20
• Deviation: 2.0 (Standard)
• Lookback: 20

Q&A

Q: The dashboard says "Expanding". Should I trade?
A: If you are a Trend Trader, YES! This is your signal. If you are a Grid/Martingale trader, NO! Stop immediately.

Q: Can I use this for manual entries?
A: Yes. A "Squeeze" (Ratio < 0.5) followed by a "Volume Spike" is the classic "Bollinger Squeeze Breakout" setup.