Bollinger Band Breakouts with a Momentum Squeeze Filter

Summary

This document presents a strategy that combines a Bollinger Band breakout oscillator with a volatility squeeze indicator and momentum calculations. The breakout component compares price with an exponential moving average envelope and normalizes excursions beyond its upper and lower bands into bullish and bearish readings. The squeeze component compares Bollinger Bands with Keltner Channels at several widths to characterize compression, while a linear-regression calculation estimates momentum.

The supplied material is a partial script: it ends during the squeeze visualization logic, before the full entry, exit, and risk-management rules can be seen. It lists configurable inputs for breakout and squeeze periods, band multipliers, ATR-based stop parameters, and a risk/reward ratio, but these alone do not establish how trades are triggered or sized in practice. No market, timeframe, backtest results, or evaluation evidence is included. The described indicators can help structure a breakout hypothesis, but this excerpt is insufficient to reproduce or assess a complete trading system.

Key ideas

• The strategy combines a normalized Bollinger Band excursion measure with squeeze and momentum calculations.
• Its squeeze logic compares Bollinger Bands with Keltner Channels at several widths.
• A linear-regression calculation is used to derive a momentum measure.
• Inputs include ATR stop parameters and a risk/reward ratio, but the excerpt does not show the complete trade rules.
• No backtest results or empirical performance evidence are provided.

Tags

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