# Bollinger Band Squeeze Strategy AI Agent Connect

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

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_cqh2s4FbvqbhGHz3pOnv79BwIc1xn9mtzRKcOV0X/ai-agent-connect
- **Tags:** bollinger-bands, keltner-channels, volatility, trading, squeeze-strategy

## Description

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.

## Tools

### 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

## Prompt Examples

**Prompt:** 
```
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].
```

**Response:** 
```
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).
```

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

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

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

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

## Frequently Asked Questions

**What is a volatility squeeze?**
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.

**How are breakout signals confirmed?**
Breakouts are confirmed when the price closes outside the Bollinger Bands after a squeeze of at least 5 bars, accompanied by volume that is at least 1.5 times the 20-day average.

**Can I customize the volatility parameters?**
Yes, you can adjust the Bollinger Band period, standard deviation, Keltner Channel period, and ATR multiplier using the `analyze_squeeze_signals` tool.