Bollinger Band Squeeze Strategy

Bollinger Band Squeeze Strategy MCP Connector for Claude

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Identify market volatility contractions and breakout signals using Bollinger Bands and Keltner Channels.

3 tools Official Updated Oct 1, 2026 Official Vinkius Partner

This MCP server provides a deterministic technical analysis engine to detect market volatility squeezes. By monitoring when Bollinger Bands move inside Keltner Channels, the engine identifies periods of low volatility. It then triggers precise BUY or SELL signals when price breaks out of these bands, confirmed by volume spikes. Use analyze_squeeze_signals to evaluate historical data, get_current_volatility_metrics for risk assessment, and validate_breakout_conditions to verify signal validity.

bollinger-bandskeltner-channelsvolatilitytradingsqueeze-strategy

3 tools expose this connector's capabilities to your AI agent.

analyze_squeeze_signals

Evaluates historical price, volume, and volatility data to identify squeeze periods and subsequent breakout signals

validate_breakout_conditions

A specialized validator to check if a specific price action meets the strict criteria for a squeeze breakout

get_current_volatility_metrics

Calculates specific volatility indicators (ATR and BB width) for a given set of prices

See how to talk to your AI agent using Bollinger Band Squeeze Strategy.

Analyze these closing prices and volumes for squeeze signals: [150, 151, 150, 149, 150, 152, 155, 160] and [1000, 1100, 1050, 1000, 1050, 1200, 2500, 2800].

A BUY signal was detected at the final bar. The price broke above the upper Bollinger Band after a 5-bar squeeze, with volume confirmed at 2800 (exceeding the 1.5x average threshold).

What are the current volatility metrics for these prices: [100, 102, 101, 103, 102]?

The current volatility metrics show an ATR of 1.2, a BB width of 4.5, and a middle band of 101.6.

Is this breakout valid? Squeeze length: 6, isSqueezed: true, currentVolume: 5000, avgVolume: 2000.

Yes, the breakout is valid because the squeeze lasted more than 5 bars and the volume is significantly higher than the average.

A squeeze occurs when Bollinger Bands contract inside the Keltner Channels, indicating a period of extremely low volatility that often precedes a significant price breakout.

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