Gabriel's Squeeze Momentum

3 days ago

📊 Gabriel’s Squeeze Momentum — Deluxe Volatility + Momentum Suite

An advanced, all-in-one squeeze & momentum framework that times volatility compression/expansion and trend shifts, with optional CVD (cumulative volume delta) momentum, ATR zone context, Discontinued Signal Lines (DSL) scalps, Colored DMI trend label, Williams VIX Fix (WVF) low-volatility exhaustion pings, Buff’s VTTI/VPCI volume confirmation, and real-time divergence detection.

What it does:
Discover Squeezes. They occur when volatility contracts, often preceding significant price moves.

Measures momentum with a fast, ATR-normalized linear regression—optionally on Price or CVD—so you see direction and “how hard it’s pushing.”

🧭 Signal Legend ~ Colors the squeeze so you instantly know regime:
🟡 / 🟣 (Tight/Very Tight): Coiled spring; prepare a plan.
🔴 / ⚫ = (Regular/Wide): Watch for Divergences between Price and Momentum.
🟢 (Fired): Expansion started; trade with momentum cross and bias.

Adds context bands at ±1/±2/±3 ATR (“trend / expansion / OB-OS”) to filter late or weak signals.

DSL (Discontinued Signal Lines) give early scalp flips on momentum vs. adaptive bands.

DMI label & triangles communicate trend strength and whether +DI / −DI is in control.

Williams VIX Fix flags capitulation/exhaustion style spikes (with optional VIX proxy).

VTTI/VPCI modules confirm when volume aligns with price trend or contradicts it.

Divergences (regular & hidden) auto-draw with optional live (may repaint) or on-close.

🎢 Squeeze Momentum — How the Logic Works 🎢

The Squeeze Momentum model is built on the principle of volatility compression and expansion. In markets, periods of low volatility are often followed by explosive moves, while high volatility eventually contracts. The “squeeze” seeks to identify these compression phases and prepare traders for the likely expansion that follows.

This indicator achieves that by comparing Bollinger Bands (BB) to Keltner Channels (KC).

Bands: Bollinger vs. Keltner

Bollinger Bands (BB): Calculated using a Simple Moving Average (SMA) of price and standard deviations (σ) of the closing price. The bands expand and contract depending on volatility.

Keltner Channels (KC): Built from an SMA plus/minus multiples of the Average True Range (ATR). Unlike some simplified squeeze indicators that approximate ATR, this implementation uses a true ATR-based KC, ensuring accuracy across different assets and timeframes.

By comparing whether the Bollinger Bands are inside or outside the Keltner Channels, the indicator identifies different squeeze regimes, each representing a distinct volatility environment.

📦 Regime Colors

The squeeze states are color-coded for quick interpretation:

🔹Wide Squeeze (⚫): BB inside KC with a high ATR multiplier. Extremely low volatility, often before major expansion.

🔹Normal Squeeze (🔴): BB inside KC with a moderate ATR multiplier (about 25% more sensitive than Wide). Typical compression setting.

🔹Narrow Squeeze (🟡): BB inside KC with a lower ATR multiplier (about 50% more sensitive than Wide). Signals tighter compression.

🔹Very Narrow Squeeze (🟣): BB inside KC with the lowest ATR multiplier (100% more sensitive than Wide). Indicates extreme coiling.

🔹Fired Squeeze (🟢): BB break outside KC. Marks the release of volatility and potential trend acceleration.

This multi-layered system improves upon classical SQZPRO by using precisely calculated Keltner Channels and multiple sensitivity levels, giving traders more granular information about volatility states.

🔒 Multi-Timeframe Support

The indicator automatically adjusts squeeze thresholds for different timeframes — hourly, 4-hour, daily, weekly, and monthly charts. Each regime has been manually tuned for its timeframe, allowing traders to use the same tool whether scalping, swing trading, or holding longer-term positions.

🎯 Momentum Core

Detecting a squeeze is only half the equation — the indicator also includes a momentum engine to determine direction and strength.

Price momentum is measured as the distance of Close from its Highest High and Lowest Low range, smoothed with a Simple Moving Average, and refined with Linear Regression.

This value is then divided by ATR, normalizing momentum relative to volatility.

Optionally, CVD Mode (Cumulative Volume Delta ÷ Volume) can replace price momentum for assets where order-flow and volume dynamics dominate (e.g., crypto).

🦆 Signal Line

Momentum is paired with a Simple Moving Average signal line:

🔹Bullish: Momentum > Signal.

🔹Bearish: Momentum < Signal.

This crossover logic provides directional bias and filters for false squeezes.

🚀 When to Use Price vs. CVD

CVD Mode (Crypto, FX with tick volume): Best for assets with strong volume/order-flow signals.

Price Mode (Equities, Commodities, Higher TFs): Best for assets with irregular or thin volume data.

🛢️ATR Zones (context filter) 🛢️

Its design is straightforward yet effective: it measures the difference between the current price from its highest highs, lowest lows, and a moving average over a chosen period, then expresses that difference in terms of the Average True Range (ATR) over the same period. By normalizing price deviations against volatility, ATR provides a clear sense of how far and how fast price is moving relative to its “normal” range.

Interpreting the Zone

Positive Values: When it is above zero, price is trading above its HH, LL, and moving average, suggesting bullish momentum. The higher the value, the stronger the momentum relative to volatility.

Negative Values: When the Momentum is below zero, price is trading below its HH, LL, and moving average, signaling bearish momentum. The deeper the reading, the stronger the downside pressure.

Magnitude Matters: Because the Momentum is expressed in ATR units, traders can immediately gauge whether the move is small (less than 1 ATR), moderate (1–2 ATRs), or extreme (3+ ATRs). This makes it especially useful for assessing overbought or oversold conditions in a normalized way.

Strengths:

🔹Volatility-Normalized: Unlike simple squeeze momentum oscillators that have different OB/OS levels, this Momentum adjusts for volatility. This makes signals more consistent across assets with different volatility profiles.

🔹Simplicity:

±1 ATR: trending zone (bulls above +1, bears below −1)

±2 ATR: expansion (keep, add, or trail). Stretch/risk of mean reversion.

±3 ATR: potential exhaustion/mean-revert zone.

🔹Momentum Clarity: By framing momentum in ATR terms, it is easier to distinguish between a small deviation from trend and a genuinely significant move. Sometimes it is a good sign that it trend to ±3/2 ATR, looks for similar directional moves.

Color: The script shades +2/+3 (OB) and −2/−3 (OS) areas and provides swing alerts at ±1 ATR.

💚 What Are Discontinued Signal Lines (DSL)? 💚


In technical analysis, one of the most common tools for smoothing out noisy data is the signal line. This concept appears in many indicators, such as the MACD or stochastic oscillator, where the raw value of an indicator is compared to a smoothed version of itself. The signal line acts as a lagging filter, making it easier to identify shifts in momentum, crossovers, and directional changes.

While useful, the classic signal line approach has limitations. By design, a single smoothed line introduces lag, which means traders may receive signals later than ideal. Additionally, a one-size-fits-all smoothing process often struggles to adapt to different levels of volatility or rapidly changing market conditions.

This is where Discontinued Signal Lines (DSL) come in. DSL is an advanced extension of the traditional signal line concept. Instead of relying on just one smoothed comparison, DSL employs multiple adaptive lines that adjust dynamically to the current state of the indicator. These adaptive lines effectively “discontinue” the dependence on a single, fixed smoothing method, producing a more flexible and nuanced representation of market conditions.

How DSL Works?

Traditional Signal Line: Compares an the Momentum against its own moving average. Provides crossover signals when the raw indicator value moves above or below the smoothed line.

Strength: reduces noise. Weakness: delayed signals and limited adaptability.

DSL Extension: Uses multiple adaptive lines that respond differently to the indicator’s current behavior. Instead of one static moving average, the DSL approach creates faster and slower “reaction lines.” These lines adapt dynamically, capturing acceleration or deceleration in the indicator’s state.

Result: Traders see how momentum is evolving across multiple adaptive thresholds. This reduces false signals and improves responsiveness in volatile conditions.

Benefits of Discontinued Signal Lines

🔹Nuanced Trend Detection
DSL doesn’t just flag when momentum changes direction—it shows the quality of that shift, highlighting whether it is gaining strength, losing steam, or consolidating.

🔹Adaptability Across Markets
Because DSL adjusts to the Momentum’s own dynamics, it works well across different asset classes and timeframes, from equities and futures to forex and crypto.

🔹Earlier Signal Recognition
Multiple adaptive lines allow traders to spot developing trends earlier than with a single smoothed signal line, without being overwhelmed by raw indicator noise.

🔹Better Confirmation
DSL is particularly useful for confirmation. If both adaptive lines agree then a fill is applied in the direction, confidence in the trend is higher as the color turns bull/bear.

🔹Practical Uses
Momentum Trading: Spot acceleration or deceleration in trend strength.
Trend Confirmation: Verify whether a breakout has momentum behind it.
Noise Filtering: Smooth out erratic moves while retaining adaptability.

⚖️ Colored Directional Movement Index (CDMI) ⚖️


The Directional Movement Index (DMI), created by J. Welles Wilder, is one of the most respected trend-following indicators in technical analysis. It is actually a family of three separate indicators combined into one: the +DI (Positive Directional Indicator), the –DI (Negative Directional Indicator), and the ADX (Average Directional Index). Together, they measure not only whether the market is trending but also the strength of that trend. Traders have used the DMI for decades to identify trend direction, gauge momentum, and filter out periods of market noise.

However, despite its reliability, the traditional DMI can be challenging to interpret. Reading three separate lines at once and extracting meaningful signals requires both experience and careful observation. This complexity often discourages newer traders from fully utilizing its power.

The Colored Directional Movement Index (CDMI) is a modern reinterpretation of Wilder’s classic tool. It condenses the same information into a single visual line while using color, shape, and density to communicate what’s happening beneath the surface. The goal is simple: make the DMI’s insights faster to read, easier to act upon, and more intuitive to integrate into trading decisions.

Key Features of CDMI

🔹Color Scale for Trend Strength
The main triangle changes its base color depending on the strength of the DI reading. Dark Red or Green, colors correspond to stronger trends, while faded Gray or lighter yellow tones signal weaker or fading trends. This makes it visually clear when the market is consolidating versus trending strongly.

🔹Color Density for Momentum
Beyond strength, the CDMI uses color density to represent momentum in the trend’s strength. If the ADX is rising (trend gaining momentum), the triangles grows more darker. If the ADX is falling (trend losing momentum), the triangle becomes paler. This provides an instant sense of whether a trend is accelerating or decelerating.

🔹Directional Triangles for Trend Direction
To replace the separate +DI and –DI lines, the CDMI plots small triangle shapes along the bottom axis. An upward-facing triangle indicates that +DI is dominant, confirming bullish direction. A downward-facing triangle signals –DI dominance, confirming bearish direction. This way, both strength and direction are shown without the clutter of multiple overlapping lines.

🔹Label Display for Detailed Values
For traders who want precise data alongside the visuals, CDMI includes a label that shows:

Current trend strength (ADX value).

Current +DI and –DI values.

Momentum status of the ADX (rising or falling).

Historical values of DMI readings, so traders can track how the indicator has evolved over time.
Tooltips are also available to explain “How to read the colored DMI line”, making this version more beginner-friendly.

Why CDMI Matters

The CDMI retains the proven reliability of Wilder’s DMI while solving its biggest drawback—interpretation difficulty. Instead of juggling three separate plots, traders get a single, information-rich line supplemented with intuitive shapes and labels. This streamlined format makes trend verification, momentum analysis, and signal confirmation much faster.

For trading applications, the CDMI can help:

Confirm Entries by showing whether the market is trending strongly enough to justify a position.

Avoid False Signals by filtering out periods of low ADX (weak trend).

Enhance Timing by tracking momentum shifts in trend strength.

By simplifying the complexity of the original DMI into an elegant, color-coded tool, the CDMI makes one of technical analysis’ most advanced indicators practical for everyday use.

😅 The VIX, the Williams Vix Fix, and Market Bottoms 😎


The VIX, formally known as the CBOE Volatility Index, has long been considered one of the most reliable indicators for spotting major market bottoms. Often referred to as the “fear gauge,” it measures the market’s expectation of volatility in the S&P 500 over the next 30 days. When fear grips investors and volatility spikes, the VIX rises sharply. Historically, these moments of extreme fear often coincide with powerful buying opportunities, as markets have a tendency to rebound once panic selling exhausts itself.

Larry Williams, a well-known trader and author, developed the Williams Vix Fix as a way to replicate the insights of the VIX across any tradable asset. While the VIX itself is tied specifically to S&P 500 options, Williams wanted a tool that could capture similar panic-driven dynamics in stocks, futures, forex, and other markets where the VIX is not directly applicable. His “fix” uses price action and volatility formulas to approximate the same emotional extremes reflected in the official VIX, creating almost identical results in practice. This makes the Williams Vix Fix a powerful addition to the trader’s toolbox, allowing the same principle that works on U.S. equities to be applied universally.

One of the most important characteristics of both the VIX and the Williams Vix Fix is that they are far more reliable at signaling market bottoms than market tops. The reason is psychological as much as it is mathematical. At market bottoms, fear and panic are widespread. Retail investors often capitulate, selling in a frenzy as prices drop. This panic drives volatility higher, producing the spikes we see in the VIX. At the same time, professional traders and institutions—those with larger capital and more disciplined strategies—tend to step in when volatility is stretched. They buy when others are fearful, using the panic of retail investors as an opportunity to acquire assets at discounted prices. This confluence of retail panic and institutional buying power is what makes the VIX such a strong bottom-finding tool.

In contrast, at market tops, the dynamic is very different. Tops tend not to be marked by panic or fear. Instead, they form quietly as enthusiasm fades, liquidity dries up, and buying interest wanes. Investors are often complacent, assuming prices will continue to rise, while professional money begins distributing their positions. Because there is no surge in fear, volatility remains muted, and the VIX does not offer a clear warning. This is why traders who rely on the VIX or the Williams Vix Fix must understand its limitations: it is exceptional for detecting bottoms but less useful for anticipating tops.

For traders, the lesson is straightforward. When you see the VIX or Williams Vix Fix spiking to extreme levels, it often indicates a high-probability environment for a rebound. These tools should not be used in isolation, but when combined with support levels, sentiment indicators, and market breadth, they can provide some of the most reliable bottom-fishing signals available. While no indicator is perfect, few have stood the test of time as consistently as the VIX—and thanks to Williams’ adaptation, its power can now be applied to nearly every market.

Indicator Signals (Great in risk-off charts):
🔹Flags spike events (tops/bottoms) with both original and filtered (AE/FE) criteria.

🔹Great as a risk overlay: tighten stops into AE/FE, or require “no spike” to enter.

🤯 Volume Comfirmation: VTTI & VPCI (Buff Dormeier) 🤯

Volume Trend Technical Indicator (VTTI)

The Volume Trend Technical Indicator (VTTI) is a momentum-style tool that analyzes how volume trends interact with price movement. Unlike basic volume measures that simply report how many shares or contracts were traded, the VTTI evaluates whether volume is expanding or contracting in the same direction as the prevailing price trend. The underlying logic is that healthy trends are supported by rising volume, while weakening trends often occur on shrinking volume.

At its core, VTTI looks at the rate of change in volume compared to price movements. By smoothing and normalizing these relationships, the indicator helps traders determine whether momentum is accelerating, decelerating, or diverging.
Rising VTTI: Suggests that volume is confirming the current price trend, strengthening the case for continuation. Flips BG Green after crossing it's signal.
Falling VTTI: Indicates that the trend may be losing participation, often a sign of possible consolidation or reversal. Flips BG Red after crossing it's signal.
Traders often use VTTI to filter entries and exits. For example, if price breaks out but VTTI does not rise above zero, the breakout may lack conviction. On the other hand, when both price and VTTI are aligned, probability of continuation improves.

Volume Price Confirmation Indicator (VPCI)

The Volume Price Confirmation Indicator (VPCI), developed by Buff Dormeier, takes the relationship between price and volume a step further. While traditional indicators like On-Balance Volume (OBV) or Chaikin Money Flow look at cumulative patterns, VPCI breaks price and volume into trend and volatility components and then recombines them to measure how well they confirm each other.

In essence, VPCI asks: “Does volume confirm what price is signaling?”

The formula integrates:
Price Trend Component – whether the market is trending upward or downward.
Volume Trend Component – whether trading activity supports that price trend.
Volatility Adjustments – to account for irregular swings.

The resulting oscillator fluctuates around a zero line:
Positive VPCI: Indicates that price and volume trends are in agreement (bullish confirmation).
Negative VPCI: Suggests that price and volume are diverging (bearish warning or false move).
Crossovers of Zero: Can serve as potential buy or sell signals, depending on context.
A key strength of VPCI is its sensitivity to divergence. When prices continue rising but VPCI begins falling, it often foreshadows a weakening rally. Conversely, a rising VPCI during a flat or down market can highlight early accumulation.

VTTI (Entry Signal) vs. VPCI (Exit Signal)
While both indicators study price-volume dynamics, their focus differs:
VTTI is simpler, emphasizing the trend of volume relative to price for momentum confirmation.
VPCI is more advanced, decomposing both price and volume into multiple components to produce a nuanced oscillator.
Used together, they provide complementary insights. VTTI helps quickly spot whether volume is supporting a move, while VPCI offers deeper confirmation and highlights subtle divergences.

Note: The Up/Down Volume Alert works better on the 4 HR, for Daily scalps or 30 minute for HR scalps. Intraday it's 2/10 minute.

🦅 Divergence toolkit 🦅

Divergences in Technical Analysis

Divergence occurs when the price action of an asset moves in one direction while a technical indicator, such as RSI, MACD, or Momentum, moves in the opposite direction. This disagreement between price and indicator often signals a shift in underlying market dynamics. Traders use divergences to anticipate either potential reversals or continuations in trends.

There are two main types of divergences: regular divergences, which typically precede reversals, and hidden divergences, which suggest continuation of the current trend.

Regular Divergence (Reversal Signals)
A regular divergence occurs when price and indicator disagree during a trend extension. These divergences signal that momentum is no longer fully supporting the current trend and that a reversal may be imminent.

🔹Regular Bullish Divergence
Price Action: Forms a lower low.
Indicator: Forms a higher low.
Interpretation: Price is making new lows, but the indicator is gaining strength. This suggests that selling pressure is weakening, and a reversal to the upside may occur.
Example: RSI rising while price dips to fresh lows.

🔹Regular Bearish Divergence
Price Action: Forms a higher high.
Indicator: Forms a lower high.
Interpretation: Price is reaching new highs, but the indicator shows weakening momentum. This implies that buying pressure is fading, warning of a potential downside reversal.
Example: MACD histogram falling while price makes higher highs.

Regular divergences are often spotted near the end of trends and are most powerful when aligned with key support/resistance levels or overbought/oversold conditions.

Hidden Divergence (Continuation Signals)
A hidden divergence occurs during retracements within a trend. Unlike regular divergences, hidden divergences suggest that the prevailing trend still has strength and is likely to continue.

🔹Hidden Bullish Divergence
Price Action: Forms a higher low.
Indicator: Forms a lower low.
Interpretation: Price is retracing within an uptrend, but the indicator is overshooting downward. This shows that momentum remains intact, supporting continuation upward.

🔹Hidden Bearish Divergence
Price Action: Forms a lower high.
Indicator: Forms a higher high.
Interpretation: Price is retracing within a downtrend, while the indicator overshoots upward. This indicates that bearish momentum remains strong, supporting continuation downward.

Hidden divergences often appear during pullbacks, helping traders time entries in the direction of the prevailing trend.

Practical Use of Divergences
🔹Trend Reversal Alerts – Regular divergences are early warnings that a trend may be ending.
🔹Trend Continuation Signals – Hidden divergences help confirm that retracements are simply pauses, not full reversals.
🔹Confluence with Other Tools – Divergences are more reliable when combined with support/resistance, candlestick patterns, or volume analysis.
🔹Multi-Timeframe Analysis – Spotting divergences on higher timeframes often produces stronger signals.

🕭🔔🛎️ Alert 🛎️🔔🕭

🔹Squeeze

🟢 Fired Squeeze

⚫ Low (Wide) Squeeze / 🔴 Normal / 🟡 Tight / 🟣 Very Tight

🔹Momentum

🐂 Bullish Trend Reversal (Crossover of Momentum and Signal from sub −2)

🐻 Bearish Trend Reversal (Crossover of Momentum and Signal from above +2)

📈 Bullish Swing (cross above +1 ATR) / 📉 Bearish Swing (cross below −1 ATR)

🔹DSL

💚 Bullish DSL Scalp / 💔 Bearish DSL Scalp

🔹Volume

🎯 Strong Up Volume (VPCI > 0 and VTTI up)

⏳ Strong Down Volume (VPCI < 0 and VTTI down)

🔹Divergences

🦅 Bullish, 🦆 Bearish, 🦅 Bullish Hidden, 🦆 Bearish Hidden

Management: Search Vanguard ETFs in your browser, look up full list of VOO holdings. Download it, or copy paste all the ticker symbols. Place that with a AI, just ask it to place , in between each ticker. NVDA, TSLA, AVGO, etc. Create a new watchlist, in the + add all tickers separated by commas. Place a watchlist alert ⚠️ only available for premium + subscribers.

Practical playbook

1) Classic Squeeze Break

Setup: 🔴(D)/🟡(2D)/🟣(3D) squeeze → wait for 🟢(1HR) Fired.

Confirm: Momentum > Signal and above +1 ATR (or DMI strong & rising).

Manage: add on pullbacks that hold +1 ATR; scale near +2 ATR or WVF AE/FE.

2) DSL Scalp in Trend

Setup: Clear trend (DMI strong) + DSL bull/bear trigger in the direction of trend.

Filter: avoid tight/very tight yellow/purple unless you want micro-scalps.

Exit: opposite DSL or ATR midline loss.

3) Mean-Reversion Fade

Setup: Momentum extended to ±3 ATR, WVF spike, and a regular divergence.

Entry: Counter signal only when mom crosses back through ±3 ATR toward mid. Exit early if squeeze ⚫/🔴, Momentum may extend to ±3/2 ATR in the same direction.

Risk: reduce size; this is a fade, not trend following.

4) Volume-Confirmed Breakout

Setup: Squeeze → 🟢 Fired + VPCI > 0 and VTTI up → trend continuation.

Manage: trail behind +1 ATR (long) or −1 ATR (short). 9 SMA works good.

Inputs at a glance (key ones)

Mode: Price or CVD momentum; Squeeze Sensitivity (σ); Momentum Length; Signal Length; ATR Smoothing.

🧮 Colors:

SQZMOM: per squeeze regime, momentum, ATR fills.

DSL: On/Off, Fast/Slow, Length.

ATR Zones: Bullish/Bearish levels (±1), ±2/±3 zone lines & fills.

DMI: Lengths, key & weak thresholds, label on/off.

WVF/VIX: Lookbacks, bands, AE/FE toggles, VIX proxy symbol.

VTTI/VPCI: Fast/slow/signal (VTTI), Short/Long (VPCI), and volume source (Tick/CVD/NVI/PVI/OBV/PVT/AccDist/VWAP).

Divergences: Regular/Hidden toggles, Sensitivity %, Lifetime, Live vs On-Close, Lines/Labels.

🔎 Suggested defaults (feel free to tweak)

Calibration: Size Momentum, so that when it's above zero the asset is trending up. For the signal, it can be kept the same or lower.

Intraday (60–240m): σ = 2.0, 18~20, 3~5, DSL Fast, DMI key 23, weak 17.

Daily/Weekly: keep σ = 2.0, consider DSL Slow, DMI key 25, weak 20, widen ATR filters; lean on VPCI/VTTI (4-HR).

CVD mode: use where tick/volume quality is high (index futures, liquid equities, crypto majors).

🪟 Tips & caveats

Swing Screener: Favor liquid underlyings (index futures/ETFs, large caps). Large-Cap, 2 M Vol, Mid-Cap, 500K Vol. Squeeze: BB( 20) upper < KC (20) upper, and BB (20) lower > KC (20) lower. Optional: Price above 9 SMA, 21 SMA, and 50 SMA, they are my SMA of choice. 200 SMA too, unless you are willing to fish in a bear market. Vice-versa for shorts. Optional: ADX 4 HR > 17, or 23 depending on what you are looking for.

Scalp Screener: Same as above, change the D 9 SMA to 5, and the BB/KC from D to 1 HR. Scalps may last 2~3 days.

Position Screener: Change all daily setting to W, aside from Volume. Optional: PEG < 1.5, FCF > 0, ROA > 8% or ROE > 6%.

Good with Moving averages (9/21/50) and low-volume zones.

Position size by IV, ATR, and account risk. Consider stop/hedge rules around ±2/±3 ATR.

Let alerts stage your watchlist; act only on combined squeeze + momentum signals.

Divergences in live mode can repaint (Real-Time); for algo or alerts, use on-close.

Tight/Very tight squeezes are great for scalps but choppy; combine with DMI rising + VPCI>0.

±3 ATR is exhaustion context, not an auto-fade—look for WVF/Div/DSL confirmation.

For alerts, pair “Fired Squeeze + Bullish Swing” (or bearish) to avoid false starts.

🎯 How to Trade Entry ~ Recap:

Tight/very tight squeeze → fires → momentum crosses up (or DSL bull).
Exit/Flip: Momentum crosses down into/after expansion or hits +2/+3 ATR with fade signs. Filter: Avoid fresh longs at +3 ATR; avoid fresh shorts at −3 ATR unless fading with confirmation.

📐 Options Integrations

✅ Risk Reversal/Modified Risk Reversal (Bullish: Short Put + Long Call)


Use when: Squeeze fires up from 🟡/🟣 and momentum crosses above signal (or zero/DSL).

Playbook Entry: On or just after the bullish fire and momentum upcross. DMI or Volume supports trend as well.

Structure: Sell a put at/just below the −2 ATR reference (or recent swing support). Buy a call at/above the breakout zone (prior high/mid-range +1 to +2 ATR).

A classic risk reversal is a long call plus a short put. That’s a very bullish structure—you gain if the price rallies (via the call), and you collect a premium by selling a put. But it has a naked downside risk. The modified risk reversal fixes that by adding a long lower put (making the short put into a defined put credit spread).

Management: If momentum stays above signal, ride toward +2 → +3 ATR. Sell the put near the current price → receive big premium. Buy the lower put → spend part of that premium (risk cap). Buy the call above the current price → spend more, but the short put premium mostly pays for it.

Exits/Adjust: Momentum downcross or squeeze flips back on (new compression) → reduce. If price retests −1/−2 ATR and holds, you can roll the short put down/out.



Breakout = Big Success; No Breakout = you keep the initial credit. Reversal = Max loss is capped by the long lower put.

✅ Iron Condor (Neutral: Short OTM Put Spread + Short OTM Call Spread)

Use when: Squeeze is active (🟡/🟣), momentum is flat near zero, and there is no directional edge. 🟢 lasts for around 5~8 bars typically. I measure the historical duration of it, and wait for a range period to occur.


Playbook Entry: During compression, set wings outside ±2 ATR (or recent range extremes). I prefer identifying boxes where the rectangle pattern occurs on the chart.

Management: Time decay works while price remains trapped in the coil. High-winrate ~80%, but 1 loser can wipe most of the gains.

Exits/Adjust: If a squeeze fires and momentum breaks hard one way, close the losing side, consider converting to a vertical or rotating to a directional spread aligned with momentum.
4HR-Bullish, closing one wing:


Tip: Align daily/weekly context with your intraday entries. 9 > 50 on Weekly, similar on Daily. Sell premium into compression; switch to directional spreads on expansion and momentum confirmation.

✅ Naked Call/Puts (Directional: 10~30 Delta Calls)

Stick to naked calls and puts when the squeezes are fired from either 🔴 or ⚫.
Look for Strikes slightly out of the money with an OI and Volume spread less than <10%.
If Strike Date is >45, manage 21 Days before expiration. Scalp: Expiration Strikes of 1/4 of the Squeeze period. Leap: Expiration Strikes of 1.75x of the Squeeze period.


📐 Futures Integrations

Playbook Entry:
Verify if the squeeze on the hourly is red or green, and enter on the 2- or 5-minute during a similar squeeze state.



Trend-Following: Traditional 2 Renko Block above 21 SMA and Momentum is bullish, or vice versa. (2~ES, 5~NQ)


Structure: Go long at/just below the ATR reference (or recent swing support). Exit below the breakout zone (prior high/mid-range +1 to +2 ATR).

Management: If momentum stays above +1 ATR ride toward +2 → +3 ATR, etc. House-money, should be kept.

Exits/Adjust: Momentum downcross or squeeze flips back on (new compression) → exit. On Renko Charts, lower the sensitivity to 0.7~1. If price retests 0/−1/−2 ATR and holds, you can enter when the 9 SMA flips. The 50 SMA is better for Daily and up; I wouldn't trade against it then.

📌 FOMO Trading Playbook



Credits & License

Credits: JF10R (Multi-Timeframe Squeeze), BigBeluga (DSL), OskarGallard (Colored DMI base), ChrisMoody (WVF ideas), PineCodersTASC (VTTI/VPCI), EliCobra (Divergence toolkit).

License: Mozilla Public License 2.0 (MPL-2.0).

Author: © GabrielAmadeusLau

3 days ago

Release Notes

On Style.

2 days ago

Release Notes

There was a duplicate alert, I solved it.

19 hours ago

Release Notes

I added a mini table at the very bottom of the inputs. It may help.

18 hours ago

Release Notes

I added more alerts.

15 hours ago

Release Notes

I made the Top WVF very sensitive.