Bollinger Bands Breakout

What it does

Bollinger Bands wrap a 20-period average in an envelope two standard deviations wide. A candle closing outside the band means volatility is expanding, but only if the bands are actually widening and the candle has conviction. This version confirms the break with band expansion, a strong candle body, and above-average volume so it doesn't chase fake-outs in a squeeze.

How it works

1. 1Compute the 20-SMA and ±2σ bands (drawn on the chart).
2. 2Confirm 1: a candle closes beyond a band. Confirm 2: band width is expanding vs 5 bars ago.
3. 3Confirm 3: a decisive candle body (>60% of range). Confirm 4: volume above its 20-bar average.
4. 4Confirm 5: price on the correct side of the midline. Three-plus must agree.