The measures the distance between the bands in percent of the middle: (upper − lower) ÷ middle × 100. If it falls to its lowest level in a long time, this is called a . Calm phases often end with a bigger move. In which direction, the squeeze does not show.
Do the math
Upper band 104, lower 96, middle 100: bandwidth (104 − 96) ÷ 100 × 100 = 8%. If it gets calmer and the bands are at 101 and 99, it is only 2%. Percent instead of points makes symbols with different prices comparable.
What “lowest level” means
There is no fixed limit. The exercise calls it a squeeze when today’s bandwidth is the lowest of the last 60 candles. With 20 candles there are many more hits, with 100 fewer. If you count squeezes, set the limit in advance.
The direction stays open
In the exercise, models A and B are identical candle by candle until the end of the calm phase. After that, A runs up and B down. A squeeze is a hint at calm, not at the direction.