Improved Scalping Consolidation & Squeeze Indicator
This indicator highlights three key market states designed for scalpers and intraday traders:
Consolidation zones (low volatility, neutral momentum)
Volatility squeezes (Bollinger Bands inside Keltner Channels)
Momentum exhaustion (trend weakening signals)
It applies bar coloring to visually map the transition between compression → expansion conditions that often precede breakouts or trend continuations.
How It Works
1. Consolidation Detection
The script identifies compression periods based on:
RSI neutrality (45–55 range)
Low MACD histogram amplitude
Low short-term ROC (rate of change)
These zones represent tightened price action before volatility returns.
2. Squeeze Detection
A squeeze occurs when:
Bollinger Bands contract inside Keltner Channels
This is a classic volatility compression signal and is often used to anticipate breakout conditions.
3. Momentum Exhaustion Detection
Signals when:
RSI is overbought (>70)
MACD histogram begins weakening
This highlights potential fatigue in upward momentum.
Strength Filters (Optional)
You can choose whether signals require:
Single-bar confirmation
or
N-bar consecutive confirmation (configurable)
This allows the script to be used as:
A sensitive, real-time scalping tool
A slower, more selective swing filter
Bar Colors
Orange → Squeeze detected
Yellow → Consolidation zone
White → Momentum exhaustion
Normal candles → No significant condition detected
Priority is applied in this order:
Squeeze → Consolidation → Exhaustion
Use Cases
Anticipating breakouts during low-volatility phases
Mapping structure during ranging markets
Improving scalping entries with volatility filters
Understanding when trending momentum is weakening
Notes
This tool is not a buy/sell indicator by itself. It is a market condition visualizer designed to enhance timing, confirmation, and context when combined with your strategy.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact OxPsalms directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact OxPsalms directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.