Hi, I found the following formula here on the forum for a squeeze play indicator - the chart looks very good, and I'm now looking to incorporate this into an exploration. Can anyone tell me what filters I need to make an expliration out of this? Many thanks for any help. { ©Copyright 2004~2005 Jose Silva } { For personal use only } { http://www.metastocktools.com } { User inputs } pds:=Input("Keltner/Bollinger Bands periods", 1,252,10); spread:=Input("Keltner Bands % spread", 0,1000,100)/100; dev:=Input("Bollinger Bands deviation", .001,10,1); plot:=Input("[1]Keltner, [2]Bollinger, [3]Keltner+Bollinger",1,3,1); { Keltner bands } KBmid:=Mov(Typ(),pds,S); KBtop:=KBmid+Mov(H-L,pds,S); KBtopDiff:=(KBtop-KBmid)*spread; KBtop:=KBmid+KBtopDiff; KBbot:=KBmid-Mov(H-L,pds,S); KBbotDiff:=(KBbot-KBmid)*spread; KBbot:=KBmid+KBbotDiff; KBwidth:=KBtop-KBbot; KBwidthAvg:=Cum(KBwidth)/Cum(KBwidth>-1); { Bollinger bands } BBtop:=BBandTop(C,pds,S,dev); BBmid:=Mov(C,pds,S); BBbot:=BBandBot(C,pds,S,dev); { Plot on price chart } If(plot=1,KBtop,BBtop); If(plot=1,KBmid,If(plot=2,BBmid,KBtop)); If(plot=1,KBbot,BBbot); If(plot=1,KBbot,If(plot=2,BBbot,KBbot))

That's a bit of a tough one since I'm struggling to interpret the code - but here is the text that went in the original post: "When Bollinger Bands (BB) fit inside the Keltner Channel (KC), a breakout is about to occur. It works on longer term charts, such as 15 minute to daily charts. This code creates an indicator that plots the ratio of BB width to KC width. When BB and KC widths are the same, the ratio (BBS_Ind)is equal to one (1). When the BB width is less than the KC Width (i.e. BB fit inside KC), the BBS_Ind is less than one and a breakout is indicated." So on that basis, I'm assuming that BBS_Ind < 1 should do it, but since I can't find BBS_Ind in the code posted above, I'm not sure which variable I should be using.

Well, you can replace the { Plot on price chart } section with this:

BBwidth:=BBtop-BBbot;
BBwidth/KBwidth;

...then, add Horizontal Line of "1".

I'm assuming a cross over "1" is a signal for long entry -- but, if so, don't hold your breadth.