strategy · on price · open source

Bollinger Squeeze Breakout

Deepwick · @deepwickv1Updated 2 Oct 2026▲ 0 users
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About

Volatility squeeze breakout: when Bollinger Bands move inside the Keltner Channel (squeeze = vol compression), wait for the upper-band break to confirm direction.

  • Tighter bbMult keeps entries closer to the basis; raise kcMult for stricter squeeze detection.
  • The squeeze state is shown via a chart background.
  • Combine with a momentum filter for cleaner breakouts.

Source code

//@version=5
strategy("Bollinger Squeeze Breakout", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=10, commission_type=strategy.commission.percent, commission_value=0.05)
len = input.int(20, "Length", minval=5, maxval=100, step=1)
bbMult = input.float(2, "BB Mult", minval=1, maxval=3, step=0.1)
kcMult = input.float(1.5, "KC Mult", minval=1, maxval=3, step=0.1)
stopPct = input.float(2, "Stop Loss %", minval=0.5, maxval=10, step=0.1)
tpPct = input.float(6, "Take Profit %", minval=0, maxval=20, step=0.1)
[bm, bu, bl] = ta.bb(close, len, bbMult)
[km, ku, kl] = ta.kc(close, len, kcMult)
squeeze = bl > kl and bu < ku
longSignal = strategy.position_size == 0 and not squeeze and close > bu
exitSignal = strategy.position_size > 0 and close < bm
if longSignal
    strategy.entry("Long", strategy.long)
if strategy.position_size > 0
    strategy.exit("Risk", stop=stopPct > 0 ? strategy.position_avg_price * (1 - stopPct / 100) : na, limit=tpPct > 0 ? strategy.position_avg_price * (1 + tpPct / 100) : na)
if exitSignal
    strategy.close("Long", comment="Back to basis")
p_Basis = plot(bm, "Basis", color=color.gray, linewidth=1)
p_Upper_BB = plot(bu, "Upper BB", color=color.blue, linewidth=1)
p_Lower_BB = plot(bl, "Lower BB", color=color.blue, linewidth=1)
p_Upper_KC = plot(ku, "Upper KC", color=color.orange, linewidth=1)
p_Lower_KC = plot(kl, "Lower KC", color=color.orange, linewidth=1)
plotshape(longSignal, "Long", style=shape.triangleup, location=location.belowbar, color=color.green, text="L")
plotshape(exitSignal, "Exit", style=shape.triangledown, location=location.abovebar, color=color.red, text="X")
alertcondition(longSignal, "Squeeze breakout long", "Bollinger broke above Keltner upper")
alertcondition(exitSignal, "Squeeze exit", "Price returned to Bollinger basis")

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