ucsgears

UCS_Squeeze_Timing-V3

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Another Version with More Features . I am confident enough this works fine now. I am Sure this will be a valuable tool for you guys who love squeezes.

///////////////// This can be further optimized, Let me know with a comment, if you still need this to be optimized.
Squeeze Momentum Indicator [Complete Package]
. ////////////////////

This update includes

- Added Options to detect squeeze using Heikin Ashi Candle
- Added Options to use BBR             or Momentum (ROC) for the Momentum Histogram
- Custom Momentum Smoothing time period
- Removed the Separate Look back periods for BB/KC - Since it doesn't really make sense using different lengths for KC and BB.

HA Closes can be really helpful in trading ETFs like FXE             , GLD             , FXY             , SLV             etc, which constantly gaps on daily basis. This helps in smoothing out. And most Importantly it Lines up with the Underlying's Squeeze.

[The Next Major Version is currently being Back tested with better timing triggers etc...... That will replace all other Squeeze indicators in the market - Some Major upgrades have been done to the squeezes to read the consolidation is with support or resistance. Also plan on adding best bet entries and pre-breakout signals. So far so good, this recent contradicting trends in daily / weekly in the market is making the indicator hard to work per theory]

The delay is because, I do not like to post any script (with signals) without sufficient back testing . I will not post these indicator with signals, unless I am sure it works per my theoretical derivations.

-

Thanks for Being Patient and all your support.

Until then - Good Luck Trading.
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// Variation - Lazybear Squeeze Indicator
// Recreated and Modified by UCSgears
// Added Options to detect squeeze using Heikin Ashi Candle
// Added Options to use BBR or Momentum (ROC) for the Momentum Histogram
// Custom Momentum Smoothing
// Removed the Seperate Lookback periods for BB/KC - Since this doesn't really make sense in using a different lengths. 

study(shorttitle = "UCS_SQUEEZE_Timing_V3", title="Squeeze Momentum Timing and Direction - Version 3", overlay=false)

length = input(20, title="Squeeze Length")
multBB = input(2,title="BB MultFactor")
multKC = input(1.5, title="KC MultFactor")
smooth = input(20, title = "Momentum Smoothing")

usebbr = input(true, title = "Use Bollinger Band Ratio", type = bool)
useHAC = input(true, title = "Use Heikin Ashi Candle", type=bool)
useTrueRange = input(true, title="Use TrueRange (KC)", type=bool)

// Calculate BB
source = useHAC ? ohlc4 : close
basis = sma(source, length)
dev = multBB * stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev

// Calculate KC
ma = sma(source, length)
range = useTrueRange ? tr : (high - low)
rangema = sma(range, length)
upperKC = ma + rangema * multKC
lowerKC = ma - rangema * multKC

sqzOn  = (lowerBB > lowerKC) and (upperBB < upperKC)
sqzOff = (lowerBB < lowerKC) and (upperBB > upperKC)
noSqz  = (sqzOn == false) and (sqzOff == false)

momentum = usebbr ? (((source - lowerBB)/(upperBB - lowerBB))-0.5) : (((close - close[12])/close[12])*100)

val = sma(momentum,smooth)

bcolor = iff( val > 0, 
            iff( val > nz(val[1]), green, blue),
            iff( val < nz(val[1]), red, orange))
scolor = noSqz ? blue : sqzOn ? red : green 
plot(val, color=bcolor, style=histogram, linewidth=3)
plot(0, color=scolor, style=circles, linewidth=3)
ucsgears PRO
2 years ago
snapshot
Reply
ChartArt
2 years ago
Thank you! The changes seem to be good improvements in many points in the details.

Do you think there is a way to eliminate these false signals in the next version? For example based on your chart the indicator shows a growing downtrend, but the price shoots up. Later the indicator shows a growing uptrend, but the price falls down rapidly. I made a image to explain it: http://i.imgur.com/S4xqNwr.png
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ucsgears PRO ChartArt
2 years ago
Its mostly based on the choice of Indicator your are using to measure the momentum. BBR vs Rate of Change.

If using BBR, the best mathematical way to explain would be, Where the price spent most of its time, Above the Mean or Below the Mean, where the mean is 20 SMA (Length). If the price is below - That this is weak, and the probability is the squeeze will fire down, vice versa otherwise.

When using Momentum (Rate of Change) - this measure the range of the current bar with regards to the previous 12th bar. Your method of following momentum can be nest utilized using ROC than BBR.

Hope this helps.
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ucsgears PRO ChartArt
2 years ago
Momentum is a earlier signal for trend changes, at least in a general concept. This is one way to use momentum -
snapshot
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ChartArt ucsgears
2 years ago
Ah, good idea. I had not thought about using the divergence of the trend of the squeeze momentum indicator with the trend of the price to detect such trend changes.
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ucsgears PRO ChartArt
2 years ago
If you like momentum divergence, use the UCS_Oscillator. That in my opinion captures the momentum better than anything out in the market. Just my opinion.
UCS_Momentum Oscillator - Version 2
+1 Reply
ucsgears PRO ChartArt
2 years ago
Your request with bgcolor is in the below link
Squeeze Momentum Indicator [Complete Package]
Reply
coondawg71 PRO ChartArt
2 years ago
ChartArt, In your example, I think you are viewing the indicator a little too closely. If you pull our your range of vision you see the overall momentum is the prevailing trend as indicated by the histogram. The occasional squeeze is not a breakout but a retracement (pullback). The squeeze type indicators are commonly only thought of as breakout indicators rather than the dual purpose to point out areas of retracement too. Just my two cents but I think it will help view this tool in another manner.
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Nice tool UCS GEARS!!!
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ucsgears PRO coondawg71
2 years ago
Use this instead
Squeeze Momentum Indicator [Complete Package]
Reply
ucsgears PRO
2 years ago
FOLKS - Please use the updated version.
Squeeze Momentum Indicator [Complete Package]


Contains an entire package.
1. Indicator
2. Overlay
3. Alerts
Reply
jackvmk
2 years ago
it is very important indicator and thanks for work on this. and it sounds really special job if you put support and resistance for understanding explosion direction easily. which technique are you using for understanding explosions support resistance? there is genius jeffrey kennedy technique: when 5, 10, 15, 20, 30, 40 simple moving averages compressed and get closed each other (it is usual in squeeze areas), you need to find a price bar which encompasses all of them. he says that bars high and low are support resistance. when price break them squeeze is fired. i am really waiting major version and every day i will check for is it come or not. only we need 50 signals... thx for your works.
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ucsgears PRO
2 years ago
The ultimate version, Specifically the Support and Resistance - Consolidation signals are being reworked to avoid complex calc, to effectively compile the codes quicker, when working with slower internet.
+1 Reply
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