Bollinger Keltner Squeeze Script

The download and this preview resolve to the same reviewed file. SHA-256: 4deb04daecb528411537dba07e3403e5876c43bd9ea0886c9f4590796f66f2a6

-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Bollinger Keltner Squeeze v1.0.0
--
-- A squeeze is a quiet period in which the Bollinger Bands sit inside the
-- Keltner Channel (standard deviation is smaller than ATR). Long squeezes
-- are often followed by a breakout, so the script waits for the squeeze to
-- end and uses Momentum to show the side price is leaning towards.
--
-- HIGHER: the squeeze lasted at least N candles, this is the first candle
--         after it ended, and Momentum (close - close N bars ago) is above 0.
-- LOWER:  same release candle, and Momentum is below 0.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Bollinger Keltner Squeeze",
    short_name = "IQOW SQUEEZE",
    overlay = true
}

input_group {
    "1. Bollinger Bands",
    bb_period = input (20, "Bollinger period", input.integer, 2, 200),
    bb_deviation = input (2, "Standard deviation", input.double, 0.5, 5, 0.1, false)
}

input_group {
    "2. Keltner Channel",
    kc_period = input (20, "Keltner period", input.integer, 2, 200),
    kc_multiplier = input (1.5, "ATR multiplier", input.double, 0.5, 5, 0.1, false)
}

input_group {
    "3. Squeeze and momentum",
    min_squeeze_bars = input (6, "Minimum squeeze length (candles)", input.integer, 1, 50),
    momentum_period = input (12, "Momentum period", input.integer, 2, 100)
}

input_group {
    "Display and advice",
    bands_visible = input { default = true, type = input.plot_visibility },
    keltner_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    bb_color = input { default = "#56CEFF", type = input.color },
    kc_color = input { default = "#FFB800", type = input.color },
    line_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- Bollinger Bands (SMA of close, sample standard deviation).
bb_middle = sma (close, bb_period)
bb_upper = bb_middle + bb_deviation * stdev (close, bb_period)
bb_lower = bb_middle - bb_deviation * stdev (close, bb_period)

-- Keltner Channel (EMA of typical price, ATR offset), as in the official library.
kc_middle = ema (hlc3, kc_period)
kc_upper = kc_middle + kc_multiplier * rma (tr, kc_period)
kc_lower = kc_middle - kc_multiplier * rma (tr, kc_period)

momentum_value = close - close [momentum_period]

local bb_upper_now = get_value (bb_upper, nil)
local bb_lower_now = get_value (bb_lower, nil)
local kc_upper_now = get_value (kc_upper, nil)
local kc_lower_now = get_value (kc_lower, nil)
local momentum_now = get_value (momentum_value, nil)

local data_is_ready =
    bb_upper_now ~= nil and
    bb_lower_now ~= nil and
    kc_upper_now ~= nil and
    kc_lower_now ~= nil and
    momentum_now ~= nil

-- Squeeze: both Bollinger bands are inside the Keltner Channel.
local squeeze_is_on =
    data_is_ready and bb_upper_now < kc_upper_now and bb_lower_now > kc_lower_now

-- Length of the current squeeze in candles (0 when there is no squeeze).
squeeze_length = iff (squeeze_is_on, nz (squeeze_length [1]) + 1, 0)

-- Release: no squeeze now, but the previous candle ended a long enough one.
local squeeze_released =
    data_is_ready and
    not squeeze_is_on and
    nz (squeeze_length [1]) >= min_squeeze_bars

higher_setup = conditional (squeeze_released and momentum_now > 0)
lower_setup = conditional (squeeze_released and momentum_now < 0)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if bands_visible then
    plot (bb_upper, "Bollinger upper", bb_color, line_width)
    plot (bb_lower, "Bollinger lower", bb_color, line_width)
end

if keltner_visible then
    plot (kc_upper, "Keltner upper", kc_color, line_width)
    plot (kc_lower, "Keltner lower", kc_color, line_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "Squeeze HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "Squeeze LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end