**** [Edit: New version (v02) posted, see the comments section for the code *****
Simple strategy. You only consider taking a squeeze play when both the upper and lower Bollinger Bands go inside the Keltner Channel. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and a move is about to take place.
I have added more support indicators -- I highlight the bullish / bearish KC breaches (using GREEN/RED crosses) and a SAR to see where price action is trending.
Appreciate any feedback. Enjoy!
Color codes for v02:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in RED.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in GREEN.
When one of the Bollinger Bands is out of Keltner Channel, no highlighting is done (this means, the background color shows up, so don't get confused if you have RED/GREEN in your chart's bground :))
Color codes for v01:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in YELLOW.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in BLUE.
Simple strategy. You only consider taking a squeeze play when both the upper and lower Bollinger Bands go inside the Keltner Channel. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and a move is about to take place.
I have added more support indicators -- I highlight the bullish / bearish KC breaches (using GREEN/RED crosses) and a SAR to see where price action is trending.
Appreciate any feedback. Enjoy!
Color codes for v02:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in RED.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in GREEN.
When one of the Bollinger Bands is out of Keltner Channel, no highlighting is done (this means, the background color shows up, so don't get confused if you have RED/GREEN in your chart's bground :))
Color codes for v01:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in YELLOW.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in BLUE.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
// // @author LazyBear // @credits http://www.hiltinvestmentfund.com/html/squeeze.html // Trading strategy based on Bollinger Bands & Keltner Channel. Added SAR / Highlights to make it really easy ;) // v01 - initial release // study(shorttitle = "TS 1 [LB]", title="Trading strategy [BB / KC] [LazyBear]", overlay=true) length = input(20, minval=1, title="Length"), mult = input(1.0, minval=0.001, maxval=50, title="MultFactor") // showBarColor = input(true, title="Highlight Bear/Bull points (KC)", type=bool) showBarColor = false useTrueRange = input(false, title="Use TrueRange (KC)", type=bool) // Note that "highlightStrategy" takes precedence over showBarColor. highlightStrategy = input(true, title="Highlight strategy points", type=bool) startSAR = input(0.02, title="Start (SAR)") incrementSAR = input(0.02, title="Increment (SAR)") maximumSAR = input(0.2, title="Maximum (SAR)") // Calculate BB source = close basis = sma(source, length) dev = mult * stdev(source, length) upperBB = basis + dev lowerBB = basis - dev plot(basis, color=red, linewidth=2) p1 = plot(upperBB, color=red, linewidth=2) p2 = plot(lowerBB, color=red, linewidth=2) fill(p1, p2, color = red) // Calculate KC ma = ema(source, length) range = useTrueRange ? tr : high - low rangema = ema(range, length) upper = ma + rangema * mult lower = ma - rangema * mult c = lime u = plot(upper, color=c, title="Upper") plot(ma, color=c, title="Basis") l = plot(lower, color=c, title="Lower") fill(u, l, color=green, transp=80) offset = 2 bearish = low < lower bear_point = bearish ? (low-offset) : na bear_color = bearish ? red : na bullish = high > upper bull_point = bullish ? (high+offset) : na bull_color = bullish ? green : na bar_color = bearish ? bear_color : (bullish ? bull_color : na) plot(bear_point, color = bear_color, style=cross, linewidth=2) plot(bull_point, color = bull_color, style=cross, linewidth=2) bgcolor((showBarColor and not highlightStrategy) ? bar_color : na) strat_sqz_color = ((upperBB < upper) and (lowerBB > lower)) ? yellow : blue bgcolor(highlightStrategy ? strat_sqz_color : na) // SAR outSAR = sar(startSAR, incrementSAR, maximumSAR) plot(outSAR, style=cross, color=blue)
