I am looking for an indicator using bolinger bands.
It show us how far the bolinger bands each other and use it to locate a brake out.
If anyone know for MT4,please let me know.
If there is no such indicator, is it possible someone can built it?

Thank you.
Ted

this letter came to me from my broker and try to find same type of indicator for mt4, but I could not find it so far.
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Trading a Breakout with Measured Volatility

The market spends its time between two distinct conditions; range bound and trending. As the market reaches a point of equilibrium, the buyers must now move their entry orders higher, in order to participate in the ever-contracting range. At the same period of time, the sellers must adjust their entry orders a little lower as their respective resistance line continues to trend to the downside. While this occurs, the average range between the daily high and low prices continues to contract, as the market’s state of volatility decreases in lock step. This can most easily be seen when applying the Bollinger Band indicator. Normally set a standard 2-standard deviation of the 20-SMA (Simple Moving Average). Eventually, as the buyers and sellers reach very close in proximity, one side will overpower the other.



It is important to keep in mind that as both the buying and selling pressure draw closer together, their respective stop orders will follow just behind the recent highs and lows. So once the market finds a ‘reason’ to move such as an economic number or political event, the market may experience a very quick spike to the upside or downside. Under normal market conditions, this fast spike may retrace back to the point of origin, as if nothing had happened. However when this unexpected move occurs as the market is in a very tight consolidating range, protective stops are triggered, and either the buyers or sellers are caught ‘off-guard’, a new explosive trend may develop. This can most often be seen as the market forms a consolidation wedge or triangle pattern.

Measuring the average distance between each respective Bollinger Band can be a bit difficult at first glance. In this case, we can now apply the “Bollinger Band Width” indicator, which simply measures this relative spread between both bands. We know that a “break-out” occurs when the following 2-criteria are met:

1. The market reaches a state of consolidation as volatility decreases significantly followed by an explosion in volatility.
2. This consolidation pattern is marked as a triangle or wedge type of pattern emerges, as the actual daily ranges fall as well.

So the question remains, how do we play these explosive situations? We must wait for both criteria to be met; volatility spikes as the market touches a price level it has not traded at for quite some time. Once this occurs, generally speaking the market now stands a good chance to follow through to much higher high’s or lower lows. In regards to the Bollinger Band Width indicator, any reading under .015 can be considered a very ‘quite’ market. On that note, we should wait until the BB-Width indicator crosses below and back above .015 while the market’s price action reflects likely breakout. This situation may not ‘play out’ in the exact manner all of the times. For this reason it is always important to maintain protective stops, so if our initial trade was too soon, or in the wrong direction, we may reenter the market and participate in the subsequent rally.

On a final note, we may ask, why is this important to note at this time? To answer this question, simply pull up a daily chart applying the Bollinger Band Width indicator to the EUR/GBP cross, and we’ll see an extremely quiet state of volatility. This does not necessarily indicate the market may breakout soon, but the probabilities are growing in our favor every day that goes by…

In all reality I'm a simple guy, and you lost me.
But I think what you are asking is for an indicator that lets you know when the Bbands are expanding.
Nick (beluck) converted this indicator from esignal code for the ttm squeeze, attached, also is an indicator I have not tried yet (sort of forgot about it)
I'm slowly getting it to look like the squeeze indicator on the ttm site, which looks tike my tradestation indicator

Attached Images

squeeze.jpg (73.4 KB, 506 views)

Attached Files

	bbsqueezemodified.mq4 (4.7 KB, 236 views)
	BB Width.mq4 (1.7 KB, 318 views)

Dear Foreverold
Thank you for your reply and letting me know about indicator.
I downloaded your attachment, I will try it!

ted