Bollinger Band Width Oscillator %

🧠 Bollinger Band Width Oscillator %

The Bollinger Band Width Oscillator % is a volatility-focused tool that measures the relative width of Bollinger Bands and transforms it into an oscillator format. It helps traders visualize volatility expansions and contractions directly in an indicator pane — a powerful way to anticipate breakout or consolidation phases.

🔍 How It Works

Band Width %: Calculates the percentage distance between the upper and lower Bollinger Bands relative to the basis (SMA).

Smoothed Output: The raw bandwidth is smoothed using a moving average for cleaner, more stable signals.

Dynamic Volatility Zones: The script automatically computes average, high, and low volatility thresholds — each dynamically adapting to market conditions.

User-Adjustable Multipliers: Control how sensitive your high/low zones are with the High Zone Multiplier and Low Zone Multiplier inputs.

⚙️ Key Features

📊 Oscillator Format – Easy-to-read visualization of volatility compression and expansion.

🔥 High/Low Volatility Detection – Automatic labeling and color-coded alerts for shifts in volatility.

🧩 Dynamic Thresholds – Zones adjust automatically with market activity for adaptive sensitivity.

🧠 Hysteresis Logic – Prevents rapid signal flipping, improving clarity and reliability.

🎨 Custom Visuals – Adjustable smoothing and background highlights for quick interpretation.

📈 Trading Applications

Identify Breakouts: Rising bandwidth often precedes price breakouts.

Spot Consolidations: Low bandwidth indicates tightening volatility and potential range trades.

Volatility Regime Analysis: Understand market rhythm and adapt strategies accordingly.

⚡ Inputs
Parameter Description
Band Length Period for Bollinger Band calculation
Band Multiplier Standard deviation multiplier for the bands
Source Price source (default: close)
Smoothing Period for smoothing the oscillator line
High Zone Multiplier Adjusts the high-volatility threshold
Low Zone Multiplier Adjusts the low-volatility threshold
Highlight Volatility Zones Optional background color overlay
🧊 Usage Tip

Combine this indicator with momentum tools or price action analysis to confirm trade setups. Watch for transitions from low to high volatility zones — these often signal the beginning of major market moves.