When the bands come close together, constricting the moving average, it is called a squeeze. A squeeze signals a period of low volatility and is considered by traders to be a potential sign of future increased volatility and possible trading opportunities. Conversely, the wider apart the bands move, the more likely the chance of a decrease in volatility and the greater the possibility of exiting a trade.
This indicator can be used at any time frames and currency pairs.
The following input parameters can be easily changed for your needs:
- nPeriod = 13;
- Deviation = 1.618;
- MaShift = 0.
