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Using Bollinger Band Width Changes to Display Volatility Phases

Article MQL5 code base
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Summary

This short indicator description presents a visual way to show periods when Bollinger Bands narrow or widen. Band narrowing and widening are framed as possible indications of changes in price volatility, and the indicator is intended to make those phases easier to see directly on a chart. Its stated calculation is simple: it uses Bollinger Band data to determine the displayed colors.

The text offers a visualization concept rather than a complete trading strategy. It gives no entry or exit rules, thresholds, performance evidence, asset or timeframe guidance, or discussion of how the display behaves in different market conditions. Band-width changes can help describe volatility, but this document does not establish that they predict direction or provide a standalone trading signal. The implementation details beyond the use of Bollinger Band data are not included in the supplied description.

Key ideas

  • Bollinger Band narrowing and widening can visually indicate changes in price volatility.
  • The indicator assigns colors based on Bollinger Band data.
  • The description presents a chart display, not a complete entry and exit strategy.
  • No testing results, thresholds, or market-specific guidance are provided.

Tags

Technical indicatorsVolatility

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