Low Volatility Setup - S&P 100

The Bandwidth Indicator is calculated subtracting the lower band from the upper band and then normalizing the result, after you divide it by the middle band.The width of the bands is expressed as a percent of the moving average. Using BandWidth, you can exploit one the Squeeze setup. When the bands get very narrow, you can expect a sharp expansion in volatility in the near future. A fall in volatility to extremely low levels suggests a sudden increase in volatility and a trend in the near future. The Squeeze is triggered when BandWidth falls to its lowest level in the past six months.In the Figure you can see the stocks printing a very low level of the BandWidth indicator and present a Squeeze setup.