ATLAS Mini: Detecting Bollinger Band Contractions

Summary

ATLAS Mini is a compact indicator designed to flag unusually narrow Bollinger Bands as a warning that a sharp price move may follow. It measures band width relative to the upper band, applies a square-root scaling and multiplier, then compares the result with an exponentially smoothed historical baseline. The indicator signals when the current width falls below four-fifths of that baseline, marking a period of contraction.

The document presents the indicator as an alert for possible volatility expansion, but it does not specify whether the subsequent move is more likely to rise or fall. It provides no backtest, asset universe, trading rules, or performance evidence, so the signal should not be read as a standalone entry direction or a demonstrated profitable strategy. The source also includes unrelated privacy-policy text; that material does not inform the trading method.

Key ideas

• The indicator tracks Bollinger Band width relative to the upper band.
• It compares scaled current width with a 120-period exponential average.
• A signal marks band narrowing below a fraction of the smoothed baseline.
• The alert anticipates possible sharp movement but does not predict its direction.
• The document provides no performance testing or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.