BB Squeeze – Indicator for MetaTrader 5

January 9, 2015

752

Unnormalized symmetrical oscillator based on the linear regression algorithm displayed as a color histogram with the simplest trend power indicator in the form of color dots along the histogram central zero line. Histogram bars color corresponds to a trend direction. The moment when the histogram changes its color is the best market entry signal. Gray dots show that the trend is less than its effective value. Blue dots show that the trend is strong.

Smoothing algorithm can be selected out of ten possible versions:

SMA – simple moving average;
EMA – exponential moving average;
SMMA – smoothed moving average;
LWMA – linear weighted moving average;
JJMA – JMA adaptive average;
JurX – ultralinear smoothing;
ParMA – parabolic smoothing;
T3 – Tillson’s multiple exponential smoothing;
VIDYA – smoothing with the use of Tushar Chande’s algorithm;
AMA – smoothing with the use of Perry Kaufman’s algorithm.

It should be noted that Phase parameters for different smoothing algorithms have completely different meaning. For JMA it is an external Phase variable changing from -100 to +100. For T3 it is a smoothing ratio multiplied by 100 for better visualization, for VIDYA it is a CMO oscillator period and for AMA it is a slow EMA period. In other algorithms these parameters do not affect smoothing. For AMA fast EMA period is a fixed value and is equal to 2 by default. The ratio of raising to the power is also equal to 2 for AMA.

The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.

This indicator was first implemented in MQL4 and published in Code Base at mql4.com 01.10.2007.

Input parameters:

//+-----------------------------------+
//| Indicator input parameters        |
//+-----------------------------------+
input Smooth_Method BB_Method=MODE_EMA_;        // Histogram smoothing method
input int BB_Period = 20;                        // Bollinger Bands period
input int BB_Phase= 100;                         // Bollinger Bands smoothing parameter
input double BB_Deviation=2.0;                   // Number of deviations
input Applied_price_ AppliedPrice=PRICE_CLOSE_; // Applied price
input double ATR_Period=20;                      // ATR period
input double ATR_Factor=1.5;                     // ATR ratio