Bollinger BandWidth: the gap between the bands as a share of the middle line, with squeeze and bulge levels over 125 bars.
Overview
Bollinger BandWidth shows how wide the Bollinger Bands are, in its own pane. Low values mean tight bands and quiet price; high values mean wide bands.
It also draws a squeeze level (the lowest width of the last 125 bars) and a bulge level (the highest).
How it works
BandWidth = (upper band - lower band) / basis. The bands use a 20-bar SMA and 2 standard deviations by default.
When the line reaches the squeeze level it takes the squeeze color; at the bulge level it takes the bulge color.
How to use it
- Some traders watch for a squeeze as a sign a quiet period may end with a larger move.
- Use the bulge level to see volatility that is unusually high for the window.
- Use it with price to choose a direction, since width shows none.
- Compare widths over time to see the symbol's normal range.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthNumber of bars used for the Bollinger Bands basis (a simple moving average) and for the standard deviation. | 20 |
| SourcePrice series the bands are computed from.Options: Close, Open, High, Low, HL2, HLC3, OHLC4, HLCC4 | Close |
| MultiplierStandard deviation multiplier for the upper and lower bands. | 2 |
| Squeeze & Bulge | |
| Reference LookbackWindow used to locate the lowest (Squeeze) and highest (Bulge) BandWidth references. | 125 |
| Show Squeeze LevelPlots the lowest BandWidth of the reference lookback — unusually compressed volatility, a condition rather than a directional signal. | On |
| Show Bulge LevelPlots the highest BandWidth of the reference lookback — extreme width that is unlikely to be sustained. | On |
| Style | |
| BandWidthColor of the BandWidth line. At its Squeeze reference the line takes the Squeeze color, at its Bulge reference the Bulge color. | #787b86 |
| Gradient FillFills the area between zero and BandWidth with a vertical gradient, fully transparent at zero. | On |
| Squeeze LevelColor of the lowest-BandWidth reference line. | #ff9800 |
| Bulge LevelColor of the highest-BandWidth reference line. | #f23645 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- A squeeze is a condition, not a direction.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.