BB / Keltner Squeeze RatioVolatility

Q: How does Janira read BB / Keltner Squeeze Ratio?

Below 1.0 (BB width < Keltner width): the Bollinger Bands have contracted inside the Keltner Channel, a state often called a 'volatility squeeze'. This indicates that recent close-to-close price variation is unusually small relative to recent bar-range volatility. Squeeze resolution - the ratio rising back above 1.0 - is often associated with a significant directional move, but the squeeze itself carries no directional bias.

Timeframe M1 · unit ratio

What it measures

The ratio of Bollinger Band width to Keltner Channel width. When this ratio drops below 1.0, Bollinger Bands are inside the Keltner Channel - the classic 'squeeze' condition.

How Janira reads it (bullish vs bearish)

Below 1.0 (BB width < Keltner width): the Bollinger Bands have contracted inside the Keltner Channel, a state often called a 'volatility squeeze'. This indicates that recent close-to-close price variation is unusually small relative to recent bar-range volatility. Squeeze resolution - the ratio rising back above 1.0 - is often associated with a significant directional move, but the squeeze itself carries no directional bias.

In plain language

The Keltner Channel is like a wide road and the Bollinger Bands are a narrower lane within it. When the lane fits entirely inside the road (ratio < 1), the price is in a squeeze - it's been more consistent than usual. When the lane bursts out of the road (ratio > 1), normal volatility is restored or exceeded.

Scenarios

Ratio < 0.8 (deep squeeze): Strong compression - BB bands have contracted well inside the Keltner Channel. Historically, such compressions often precede a significant expansion.
Ratio 0.8-1.2: Moderate compression or near-neutral. The two envelopes are close in width.
Ratio > 1.5: BB bands significantly wider than Keltner. Strong recent close-to-close moves; no squeeze condition present.
Ratio transitioning from < 1 to > 1 (squeeze release): The statistical range is expanding back toward normal - often coincides with a bar-range expansion visible on the chart.

More volatility indicators

ATR % of Price (14)Normalized ATR (14)Bollinger %b (20, 2σ)Bollinger Band Width (20, 2σ)Keltner Channel Position (20, 2×ATR)Donchian Channel Position (20)Close Standard Deviation % (20)Historical Volatility (20 bars, annualised)

Janira computes BB / Keltner Squeeze Ratio deterministically from live price action, the same way for every reading - no discretion, no hidden weighting. This page explains the method; it is not a live reading and not advice.