stelaraX - BB Keltner Squeeze

stelaraX – BB Keltner Squeeze

stelaraX – BB Keltner Squeeze is a volatility and momentum indicator designed to detect compression phases and the moment they release into a potential breakout. It compares Bollinger Bands against a Keltner Channel to identify “squeeze” conditions and overlays a momentum histogram to gauge breakout direction and strength.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com

Core logic

The script builds Bollinger Bands (BB) and a Keltner Channel (KC) from the same price source and flags a squeeze when BB contracts inside KC. A momentum component is calculated using linear regression to estimate directional pressure during and after the compression.

Key principles:

* Bollinger Bands define volatility via standard deviation around an SMA
* Keltner Channel defines volatility via ATR around an EMA
* squeeze is active when BB is fully inside KC (volatility compression)
* squeeze fires when BB exits KC after being inside (release phase)
* momentum is derived from a linear regression of detrended price
* histogram color reflects momentum direction and acceleration

This combination helps identify low-volatility buildup and the likely direction of the subsequent move.

Visualization

The script plots:

* a momentum histogram in a separate indicator pane
* dynamic bar colors indicating bullish/bearish momentum and strengthening/weakening pressure
* a zero line for directional context
* squeeze status points on the zero line (squeeze ON)
* a distinct marker when the squeeze releases (squeeze fire)
* alert conditions for squeeze start and squeeze fired events

This layout makes compression phases and breakout timing easy to spot.

Use case

This indicator is intended for:

* identifying volatility compression before breakouts
* timing entries around squeeze release events
* confirming breakout direction using momentum pressure
* filtering trades during low-volatility ranging phases
* supporting systematic breakout and volatility-expansion strategies

It works especially well on intraday and swing timeframes and integrates cleanly with structure, trend filters, and AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.