Bollinger Band Oscillator (Distance between 2 bands)

📌 Bollinger Band Width Oscillator

Description
This indicator measures the distance between the Upper and Lower Bollinger Bands and displays it as an oscillator. It is designed to help traders track squeeze (contraction) and expansion phases in the market, which often precede significant price moves.

Calculation

Bollinger Bands are built from a moving average (MA) and standard deviation.

Band Width = Upper Band – Lower Band.

Users can normalize the width in three ways:

Absolute: raw value in price units.

% of Basis: width relative to the MA (useful for cross-asset or multi-timeframe comparison).

ATR-normalized: width divided by ATR, filtering out absolute volatility effects.

Interpretation

Low oscillator values → Bands are contracting → market is consolidating, often a precursor to volatility breakouts.

High oscillator values → Bands are expanding → market is experiencing strong volatility or following a breakout.

The included Signal line can help identify turning points when the oscillator crosses above/below it.

Customization

Select MA type (SMA, EMA, SMMA, WMA, VWMA).

Adjust StdDev multiplier.

Choose normalization (Absolute, % Basis, ATR).

Optional smoothing and histogram/line display.

👉 Practical Use:

Detect upcoming breakouts by spotting “squeeze” conditions.

Compare volatility regimes across assets or timeframes.

Enhance breakout or trend-following strategies with volatility context.

🔹 Short Description (for TradingView search/preview)

Measures the width of Bollinger Bands as an oscillator. Helps identify squeeze and expansion phases, anticipate breakouts, and track volatility across assets or timeframes.