BB Squeeze Breakout

// This Pine Script® code is licensed under Apache-2.0
// SPDX-License-Identifier: Apache-2.0
// © PineForge contributors 2026
//
// PF probe 02 — BB / KC squeeze breakout
// Purpose: parity test for ta.bb() + ta.kc() tuple returns and the BB-inside-KC
// squeeze-state derivation.
//
//@version=6
strategy("BB Squeeze Breakout", overlay=true, initial_capital=1000000, process_orders_on_close=false, pyramiding=1, commission_type=strategy.commission.percent, commission_value=0, slippage=0, default_qty_type=strategy.fixed, default_qty_value=1)

// === Inputs ===
bbLen  = input.int(20, "BB Length", minval=5)
bbMult = input.float(2.0, "BB Multiplier", step=0.1)
kcLen  = input.int(20, "KC Length", minval=5)
kcMult = input.float(1.5, "KC Multiplier", step=0.1)
src    = input.source(close, "Source")

// === Bollinger Bands (tuple) ===
[bbMid, bbUpper, bbLower] = ta.bb(src, bbLen, bbMult)

// === Keltner Channels (tuple) — now using ta.kc() directly ===
[kcMid, kcUpper, kcLower] = ta.kc(src, kcLen, kcMult)

// === Squeeze detection: BB inside KC ===
sqzOn  = bbLower > kcLower and bbUpper < kcUpper
sqzOff = bbLower < kcLower or bbUpper > kcUpper

// === Momentum ===
mom = ta.linreg(src - bbMid, bbLen, 0)

// === Track squeeze state ===
var bool wasSqueezed = false
if sqzOn
    wasSqueezed := true

// === Squeeze fires when BB expands outside KC ===
sqzFired = wasSqueezed and sqzOff

// === Entry signals ===
if sqzFired and mom > 0
    strategy.entry("Long", strategy.long)
    wasSqueezed := false
if sqzFired and mom < 0
    strategy.entry("Short", strategy.short)
    wasSqueezed := false

// === Exit on opposite momentum ===
if strategy.position_size > 0 and mom < 0
    strategy.close("Long")
if strategy.position_size < 0 and mom > 0
    strategy.close("Short")

plot(bbUpper, "BB Upper", color=color.blue)
plot(bbLower, "BB Lower", color=color.blue)
plot(kcUpper, "KC Upper", color=color.orange)
plot(kcLower, "KC Lower", color=color.orange)