SeaSide420

Squeeze Momentum Indicator [LazyBear] vHMA

This is a remake of the famous LazyBear Indicator, the Squeeze Momentum Indicator .
All i did was take out the SMA's and replace them with HMA's. HMA is a more responsive moving average.
Hull Moving Average .


This is a derivative of John Carter's "TTM Squeeze" volatility indicator, as discussed in his book "Mastering the Trade" (chapter 11).

Black crosses on the midline show that the market just entered a squeeze ( Bollinger Bands are with in Keltner Channel). This signifies low volatility , market preparing itself for an explosive move (up or down). Gray crosses signify "Squeeze release".

Mr.Carter suggests waiting till the first gray after a black cross, and taking a position in the direction of the momentum (for ex., if momentum value is above zero, go long). Exit the position when the momentum changes (increase or decrease --- signified by a color change). My (limited) experience with this shows, an additional indicator like ADX / WaveTrend, is needed to not miss good entry points. Also, Mr.Carter uses simple momentum indicator , while I have used a different method (linreg based) to plot the histogram.

More info:
- Book: Mastering The Trade by John F Carter


Here is the original version:
Release Notes: SMA changed to HMA

thanks to https://www.tradingview.com/u/phryll for noticing it
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Hey, great work. My question is, what are the blue dots? There are black ones for squeeze and grey ones for release, but what are the blue ones indicating?
+23 Reply
dg5701 florianboschi
@florianboschi, estoy en la misma situación que vos. Quisiera saber que significa las cruces azules
Reply
Why do you use sma again when plotting?
See:

val = linreg(source - avg(avg(highest(high, lengthKC), lowest(low, lengthKC)), sma(close, lengthKC)), lengthKC, 0)
plot(val, color=bcolor, style=plot.style_histogram, linewidth=4)
+4 Reply
@phryll, oh yea should change that to HMA too
+2 Reply
aashish2137 SeaSide420
@SeaSide420, Just checking, did you (or do you plan to) release a V2 of this script with this change?
Reply
SeaSide420 aashish2137
@aashish2137, yes, thanks for reminding me, I'll do it today
Reply
SeaSide420 aashish2137
@aashish2137, sorry for delay, it is fixed now
Reply
@phryll, fixed
Reply
SeaSide420 SeaSide420
@SeaSide420, pretty simple LoL just changed the s to h
turns out HMA is built into the version 4 pinescript
+1 Reply