BB Squeeze Forex Indicator (MT4)

About the BB Squeeze Forex Indicator

BB Squeeze is a fantastic Forex signals indicator for MT4 that’s based on Bollinger Bands and Momentum.

It is designed to detect volatility compression and alert you when a breakout is about to happen.

This indicator identifies market “squeeze” conditions, when Bollinger Bands contract inside the Keltner Channels, often signaling a powerful move ahead

The indicator appears in a separate trading window in the form of a colored buy and sell histogram.

Buying and selling currency pairs with the BB Squeeze technical indicator is straightforward.

Key Takeaways

• A buy signal occurs as soon as the BB Squeeze histogram bars cross the 0.00 level upwards.
• A sell signal occurs as soon as the BB Squeeze histogram bars cross the 0.00 level downwards.
• Popular trend indicator.
• Great for trend reversals.

For scalping and day trading purposes, the indicator tends to work the best on the M5, M15, and H1 trading charts.

Free Download

Download the “bbsqueeze-dark.mq4” indicator for MT4

Benefits of Using the BB Squeeze Forex Indicator

• Pinpoints breakout entries after market compression
• Filters out noise by waiting for volatility to return
• Gives you an edge in both trending and ranging markets
• Can be combined with volume or momentum indicators for confirmation
• Perfect for swing traders and intraday breakout setups

Indicator Example Chart (EUR/USD H1)

How to Trade Using the BB Squeeze Forex Indicator

• Open a buy trade as soon as the BB Squeeze histogram bars turn back above the zero level.
• Open a sell trade as soon as the BB Squeeze histogram bars turn back below the zero level.
• Place your stop-loss just below the signal candle (for buys) or above it (for sells).
• Use a 1:2 risk-to-reward ratio or target recent support/resistance for take profit.

Download Now

Download the “bbsqueeze-dark.mq4” indicator for Metatrader 4

BB Squeeze + Ichimoku Trend Monitor Strategy for MT4

This strategy combines the volatility breakout power of the BB Squeeze Forex Indicator with the trend confirmation from the Ichimoku Trend Monitor with Alert Indicator.

The system is designed to catch explosive moves right as the market transitions from low volatility (squeeze) into trending conditions.

It is best used on M15 to H1 timeframes for intraday or swing trading in trending Forex pairs.

What Is This Strategy About?

The BB Squeeze Indicator detects periods of low volatility—when the Bollinger Bands contract inside the Keltner Channels—signaling that a breakout is imminent.

The Ichimoku Trend Monitor provides a real-time analysis of the Ichimoku system and alerts when the trend aligns with bullish or bearish momentum.

The combination of breakout anticipation (BB Squeeze) and directional confirmation (Ichimoku Trend Monitor) results in powerful, well-timed entries.

How the Indicators Work Together

1. BB Squeeze Forex Indicator

This indicator highlights squeeze conditions on the chart, signaling when the market is building pressure.

A breakout bar or alert indicates that volatility is returning, providing a tradeable opportunity.

2. Ichimoku Trend Monitor with Alert Indicator

Monitors all key components of the Ichimoku system (cloud, Tenkan/Kijun, Chikou Span) and simplifies it into real-time alerts showing bullish, bearish, or neutral trend signals—perfect for filtering false breakouts.

Buy Rules

• Wait for a squeeze breakout signal (e.g., a blue bar or breakout alert) from the BB Squeeze Indicator.
• Confirm the trend direction with the Ichimoku Trend Monitor showing a bullish signal (trend = bullish).
• Enter long at the close of the breakout candle.
• Set stop loss below the squeeze base or recent swing low.
• Target the next resistance zone or use a 1:2 risk-to-reward ratio.

Sell Rules

• Wait for a squeeze breakout to the downside from the BB Squeeze Indicator (e.g., red bar or alert).
• Confirm with the Ichimoku Trend Monitor showing a bearish signal.
• Enter short at the close of the breakout candle.
• Place a stop loss above the squeeze high or recent swing high.
• Take profit at the next support level or manage trade with a trailing stop.

Case Study Example

EUR/JPY M15 Chart Analysis (3-Week Sample Period):

• Total Signals: 40 trades
• Winning Trades: 27 (67.5%)
• Average Win: +26 pips
• Average Loss: -13 pips
• Net Result: +533 pips over the testing period

Advantages of the Strategy

• Anticipates Volatility: Enter trades right before the market expands, maximizing momentum potential.
• Strong Trend Confirmation: Ichimoku Trend Monitor reduces the chance of trading against the trend.
• Visually Clear: Color-coded squeeze signals and trend alerts make it simple to follow.
• Reduces False Breakouts: Only trades breakouts aligned with confirmed trends.

Drawbacks and Considerations

• False squeezes may occur during major news events—avoid entries just before high-impact announcements.
• Requires patience—trades only during squeeze conditions, which may not happen every session.
• Sideways Ichimoku signals can delay entries or create conflicting confirmations in choppy markets.

Strategy Conclusion

The combination of the BB Squeeze Forex Indicator and the Ichimoku Trend Monitor with Alert Indicator provides a balanced breakout strategy for MT4.

It targets low-volatility phases just before they expand and confirms trend direction with the trusted Ichimoku framework, offering traders high-probability entries and clear trade management cues.

Indicator Specifications

Final Words

The BB Squeeze Forex Indicator for MT4 gives you a tactical edge when it comes to trading breakouts.

By identifying low-volatility zones and signaling directional momentum, it helps you enter trades with more confidence and accuracy.

Download the BB Squeeze Indicator now and start spotting high-quality breakout setups before the market explodes.