A bundle reporting the squeeze state — true on each bar where the Bollinger Bands sit inside the Keltner Channels (volatility compressed), false otherwise.
Squeeze detects a volatility squeeze — the moment the Bollinger Bands pinch inside the Keltner Channels. That ‘bands inside channels’ state marks unusually quiet, coiled markets that often precede a strong breakout.
How it works
You wire in four number lines: the Bollinger upper and lower, and the Keltner upper and lower. On each bar the tool checks whether both Bollinger edges sit inside the matching Keltner edges (upper below upper, lower above lower). When they do, volatility has compressed and the squeeze is ‘on’; when the bands push back outside, the squeeze releases. There are no settings — the comparison is purely the four lines you feed it.
Connects to
Reads from
Feeds into
Examples
Breakout setup: gate entries to fire only after a squeeze releases, so you trade the expansion out of a quiet, coiled range rather than chopping inside it.
Regime filter: keep a trend strategy on hold while the squeeze is on (low volatility) and let it trade once the bands break back outside the channels.
Common mistakes
Feeding Bollinger and Keltner built on different periods or sources, so the ‘inside’ comparison is between mismatched bands and the squeeze reads nonsense.
Treating the squeeze itself as an entry — it only flags compression; you still need a direction signal for the breakout.