Volatility Breakout5m CandlesComplexity: Advanced
Keltner Channel & Bollinger Squeeze Breakout
John Carter’s classic TTM Squeeze setup. Detects compression when Bollinger Bands fit entirely inside Keltner Channels, firing trades when bands burst outside.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Squeeze = Upper_BB < Upper_KC; Fire = Upper_BB > Upper_KC with Momentum_12 > 0
Deterministic Entry Rules
Long Entry (BUY)
- ✓Bollinger Bands were inside Keltner Channels (Squeeze).
- ✓Bollinger Bands expand outside Keltner Channels.
- ✓12 Momentum indicator turns positive and green.
Short Entry (SELL)
- ✓Bollinger Bands were inside Keltner Channels.
- ✓Bollinger Bands expand outside Keltner Channels.
- ✓12 Momentum indicator turns negative and red.
Exit Criteria & Stop Loss Protection
Initial Stop LossOpposite Keltner Channel boundary.
Target Profit2.0x ATR projected from breakout.
Risk/Reward Expectancy1 : 2.2
Strategy Configuration Specs
Market Segment:Nifty 50 Index Options & BankNifty
Candle Timeframe:5m Candles
Risk-to-Reward Ratio:1 : 2.2
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
Keltner Channel (20, 1.5 ATR)BBANDS (20, 2.0 StdDev)Momentum (12)
Risk Management Controls
- •Strict trailing stoploss engages at +1.0% profit.
Target Trader Profile:Options buyers targeting explosive intraday momentum.