Modified version of Squeeze Momentum Indicator [LazyBear] visualizing on Price Chart
author: LazyBear, modified by KıvançÖZBİLGİÇ
Release Notes
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small update: Keltner Channel calculations replaced by kc(series, length, mult, useTrueRange) build-in function
Release Notes
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enhancement
The Squeeze Indicator measures the relationship between Bollinger Bands and Keltner's Channels to help identify consolidations and signal when prices are likely to break out (whether up or down). The Squeeze Indicator finds sections of the Bollinger Bands which fall inside the Keltner's Channels and in this case the market is said to be in a squeeze (indicator turns off, displayed with grey diamond shapes in this study) When the volatility increases, so does the distance between the bands, conversely, when the volatility declines, the distance also decreases and in such cases the squeeze is said to be released (indicator turns on, displayed with triangle up or triangle down shapes)
To produce Buy/Sell signals, the Squeeze indicator is plotted along with Momentum Oscillator When the indicator is on and the Momentum Oscillator Histogram is green, it is considered a Buy signal (this signal is supposed to be correct until two green bars in a row). When the indicator is on and the Momentum Oscillator Histogram is red, it is considered a Sell signal (this signal is supposed to be correct until two red bars in a row). When the market finishes a move, the indicator turns off (grey) and no trade is recommended
Release Notes
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Update
- Multi TimeFrame ability added
- The Squeeze Indicator measures the relationship between Bollinger Bands and Keltner's Channels, hence made them optionally visable
You're a legend. This indicator is ace. Thank you.
dgtrd
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@eggpot, 😊 thank you very much 🙏, just presented @LazyBear's script differently with some slight modifications
eggpot
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@dgtrd, Excellent modifications. Is it possible to add alerts for change in the direction of the squeeze? For example, alert for bullish squeeze to bearish squeeze? Or perhaps standalone alerts if a trader just wants alerts for bullish squeezes to take long trades (and vice versa - bearish squeeze for short trades).
Squeeze captures the moments where a market is in a period of consolidation right before a big move and is assumed to predicts the subsequent direction of that move
Amir-G
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Thank you great work, could you advise how to set the alerts, or if you could change it so there’s a buy and sell alert.
dgtrd
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thnaks @Amir-G, now we have alert when squeeze release is observed
The Squeeze Indicator measures the relationship between Bollinger Bands and Keltner's Channels to help identify consolidations and signal when prices are likely to break out (whether up or down).
The Squeeze Indicator finds sections of the Bollinger Bands which fall inside the Keltner's Channels and in this case the market is said to be in a squeeze (indicator turns off - no trade is recommended, displayed with grey diamond shapes in this study)