Close
Skip to content

Tutorial 98 | Bollinger band ‘squeeze’ breakouts

Bollinger Band squeeze breakouts

Welcome to Markplex tutorial 98 in this collection of tutorials designed to help you learn TradeStation EasyLanguage programming skills. Please join our email list if you have not already done so and we will let you know when we release new tutorials or programs.

Tutorial 98 applied to a daily GBPUSD chart with a 'squeeze' length of 120.
Tutorial 98 applied to a daily GBPUSD chart with a ‘squeeze’ length of 120. The ‘squeezes’ are shown where the upper and lower Bollinger bands are plotted black and a little thicker.

A narrowing of the Bollinger bands is an indication of lower volatility. According to John Bollinger (who created the Bollinger band concept), periods of low volatility are often followed by periods of high volatility. This could mean that a narrowing of the Bollinger bands (or a period of low volatility) –a ‘squeeze’–may foreshadow a period of higher volatility, or a breakout in price.

Tutorial 98 applied to a daily @YM chart. The 'squeeze' area is highlighted by a yellow plot.
Tutorial 98 applied to a daily @YM chart. The ‘squeeze’ area is highlighted by a yellow plot.

Tutorial 98 demonstrates how to calculate and plot the Bollinger bands, as well as to calculate when the bands narrow to the point when the difference between the high Bollinger band and the low Bollinger band is the lowest in a user input number of bars.

The video below explains the development of the program.

User inputs (explained in the video below)

BollingerPrice( Close ),
Length( 20 ),
NumDevsUp( 2 ),
NumDevsDn( -2 ),
NumBars( 120 ),
SqueezeColor( Yellow );

This tutorial program is available for immediate download for only $19.95. 

Gold Pass members get an additional 20% discount off all program and tutorial prices. If you are a Gold Pass member make sure you enter the special coupon code to get 20% discount off these prices. You can find the coupon code on the Gold Pass page.

Tutorial 98 video

For best results, watch this in full screen HD mode.

This tutorial program is available for immediate download for only $19.95. 

Gold Pass members get an additional 20% discount off all program and tutorial prices. If you are a Gold Pass member make sure you enter the special coupon code to get 20% discount off these prices. You can find the coupon code on the Gold Pass page.

TO THE BEST OF MARKPLEX CORPORATION’S KNOWLEDGE, ALL OF THE INFORMATION ON THIS PAGE IS CORRECT, AND IT IS PROVIDED IN THE HOPE THAT IT WILL BE USEFUL. HOWEVER, MARKPLEX CORPORATION ASSUMES NO LIABILITY FOR ANY DAMAGES, DIRECT OR OTHERWISE, RESULTING FROM THE USE OF THIS INFORMATION AND/OR PROGRAM(S) DESCRIBED, AND NO WARRANTY IS MADE REGARDING ITS ACCURACY OR COMPLETENESS. USE OF THIS INFORMATION AND/OR PROGRAMS DESCRIBED IS AT YOUR OWN RISK.

ANY EASYLANGUAGE OR POWERLANGUAGE TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (AND PARTS THEREOF) AND ASSOCIATED TECHNIQUES REFERRED TO, INCLUDED IN OR ATTACHED TO THIS TUTORIAL OR PROGRAM DESCRIPTION ARE EXAMPLES ONLY, AND HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES. MARKPLEX CORPORATION. DOES NOT RECOMMEND THAT YOU USE ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (OR ANY PARTS THEREOF) OR TECHNIQUES. THE USE OF ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS AND TECHNIQUES DOES NOT GUARANTEE THAT YOU WILL MAKE PROFITS, INCREASE PROFITS, OR MINIMIZE LOSSES.

If you see any errors in this tutorial – or we have not made something clear, we would be most grateful if you could please let us know. E-mail us at: tutorials@markplex.com. Also, let us know if you have any ideas for new tutorials.