BB Power Oscillator and Squeeze Release Strategy

Summary

This Pine Script strategy combines a Bollinger Band based power oscillator with a volatility squeeze filter. It calculates bullish and bearish power from price’s distance beyond the oscillator’s bands, then detects when Bollinger Bands move out of a narrower Keltner Channel squeeze. A configurable recent-release window can restrict trades to signals soon after that transition.

The visible settings also define trade risk controls, including risk per trade, a reward-to-risk target, an ATR-based initial stop, breakeven movement, optional trailing, and a maximum holding period. The supplied document ends partway through the squeeze plotting logic, before showing the entry and exit conditions. It includes no backtest results or performance evidence, so the complete trade rules and effectiveness cannot be assessed from this excerpt.

Key ideas

• The oscillator measures bullish and bearish price excursions beyond EMA-centered bands.
• A squeeze is identified when Bollinger Bands fit inside Keltner Channels.
• A release occurs when the squeeze ends after having been active on the prior bar.
• A configurable window can limit trading to a period after squeeze release.
• The excerpt lists ATR stops and trailing controls but omits the complete order logic.

Tags

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