Bollinger Band Squeeze Strategy (C#)

This setup monitors the width of the Bollinger Bands to detect periods of low volatility. When the bands contract relative to their recent average, it signals a potential volatility expansion is near. Once a squeeze is identified, the strategy waits for price to break outside the bands. A close above the upper band initiates a long, while a close below the lower band opens a short. The trade is closed if price returns toward the middle of the bands or if a stop-loss is triggered. The method targets traders who like to trade volatility breakouts rather than trend continuation. Using the band width as a filter helps avoid false signals during choppy conditions.

• Entry Criteria:

• Long: Band width < average width && Close > upper band

• Short: Band width < average width && Close < lower band []Long/Short: Both sides. []Exit Criteria:

• Long: Exit when price drops back inside the bands

• Short: Exit when price rises back inside the bands []Stops: Yes, typically at 2ATR. [*]Default Values:

• BollingerPeriod = 20

• BollingerMultiplier = 2.0m

• LookbackPeriod = 20

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Breakout

• Direction: Both

• Indicators: Bollinger Bands

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural networks: No

• Divergence: No

• Risk Level: Medium