INDICATOR

Bollinger Bands Width

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Bollinger Bands Width (BBW) – FX Replay Guide

BBW tracks volatility compression and expansion, helping you time breakouts, ride trend continuations, and filter trades by market energy.

How to Add It

  1. Indicators → search “BBW” (Bollinger Band Width)
  2. Apply with: Length = 20, Deviation = 2 (default Bollinger settings)

How to Use BBW in FX Replay

Detecting Squeezes (Low BBW)

  • When BBW hits local or historical lows, volatility is compressed → a breakout is likely.
  • Prime moments: before high-impact sessions (e.g., London/NY AM) or after extended ranges.

Breakout Signal Confirmation

  • After a squeeze:
    • Wait for price to break an outer Bollinger Band.
    • Confirm with volume spikes, VWAP retest, or RSI momentum.

Trend Continuation (High BBW)

  • Expanding BBW during a move signals strength — consider holding or scaling in.
  • Pair with SMMA or Supertrend to confirm direction.

Backtesting Tips

  • Track setups like:
    • BBW squeeze + NY Open Breakout
    • BBW expansion + VWAP bounce
    • BBW low + PO3 expansion phase
  • Study price action around compression zones and session boundaries.

Strategy Combo Examples

  • BBW + Zeussy Cycles: Watch for squeezes during AMD 30/90.
  • BBW + Fractals: Breakout above a fractal high with expanding BBW = high-probability entry.

Pro Tip

In FX Replay, BBW is your pre-trade radar:

  • Low BBW → Be alert — a move is brewing.
  • High BBW → Market is already moving — ride the trend or wait for a pullback.

Enhance signals by pairing BBW with:

  • FVG retests or order-block reactions after a squeeze
  • Zeussy session markers to align with market rhythm
  • Trade-journal tags like “BBW squeeze + HTF PO3 bias + volume spike” for systematic review*