Can you create conditions to fetch bollinger band's sqeezing

Streak - backtesting
1

I am looking to create a sell strategy and want to enter when the whole candle is lower than LBB and the bollinger bands have squeezed together. whole candle lower then LBB is easy, but how do i get squeezed Bands?

2

IMO, for squeezing of BB, the standard deviation of the BB at last candle should be less than previous candle can be the condition. You can check for 2 consecutive candles for confirmation.

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3

We have created a strategy based on your requirement. Click on the below link to access it-

The conditions will fetch results when the Bollinger bandwidth is falling from the last 5 candles (The width is decreasing meaning the bands are squeezing) and the current candle high is lower than the lower Bollinger Band.

4 Likes
4

Thanks, man this is working. It just didn’t come into my mind that we could use bandwidth as well

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5

@Foodietrader

nice trading idea brother. im a begineer so just collecting trading ideas from other traders and testing them on paper trade.

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6

thanks for the strategy link. its a good one

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7

If the current candle’s high is below the lower Bollinger Band, and the Bollinger bandwidth has been decreasing over the previous five candles, then the conditions will be met.

8

The current strategy applies to the Bearish strategy. Can you please suggest a strategy for a bullish trend?