This indicator helps traders to identify low volatility areas by using the "Bollinger Bands Squeeze" method. The idea is to look for the lowest values in the Bollinger bands width to judge the lowest volatility readings.
By default the squeeze period is 125, as suggested by John Bollinger.
The indicator is a variation on the BB Squeeze indicator by @danarm. It adds:
* A lowest volatility print, named "Squeeze Line". This shows traders the lowest BBW reads. * A moving average on top of BBW. This helps traders gauge volatility expansion. I'd use is like this: once you identify volatility contraction, an expansion would be when BBW crosses its average upwards. * The blue background color indicates where BBW crossed its lowest 125 value, indicating further volatility contraction.
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Added "BBW Expansion" as well (useful for "unusual volatility alerts").
Thank u Love this indicator. I added some features like color change for expansion and contraction of the BBW Line incl. bar coloring and some alertcondtions.