BB Expansion Oscillator (BEXO)

BB Expansion Oscillator (BEXO) is a custom indicator designed to measure and visualize the expansion and contraction phases of Bollinger Bands in a normalized way.

🔹 Core Features:

Normalized BB Width: Transforms Bollinger Band Width into a 0–100 scale for easier comparison across different timeframes and assets.

Signal Line: EMA-based smoothing line to detect trend direction shifts.

Histogram: Highlights expansion vs contraction momentum.

OB/OS Zones: Detects Over-Expansion and Over-Contraction states to spot potential volatility breakouts or squeezes.

Dynamic Coloring & Ribbon: Visual cues for trend bias and crossovers.

Info Table: Displays real-time values and status (Expansion, Contraction, Over-Expansion, Over-Contraction).

Background Highlighting: Optional visual aid for trend phases.

🔹 How to Use:

When BEXO rises above the Signal Line, the market is in an Expansion phase → potential trend continuation.

When BEXO falls below the Signal Line, the market is in a Contraction phase → potential consolidation or trend weakness.

Overbought/Over-Expansion zone (above OB level): Signals high volatility; watch for possible reversal or breakout exhaustion.

Oversold/Over-Contraction zone (below OS level): Indicates a squeeze or low volatility; often precedes strong breakout moves.

🔹 Best Application:

Identify volatility cycles (squeeze & expansion).

Filter trades by volatility conditions.

Combine with price action, volume, or momentum indicators for confirmation.

⚠️ Disclaimer:
This indicator is for educational and research purposes only. It should not be considered financial advice. Always combine with proper risk management and your own trading strategy.