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Squeeze Momentum Indicator

Translate from Pine: Squeeze Momentum Indicator [LazyBear]

(_https://tradingview.com/script/nqQ1DT5a-Squeeze-Momentum-Indicator-LazyBear/).

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).

Mr. Carter uses a simple momentum indicator, here’s a linreg based method to plot the histogram.

More info:
– Book: “Mastering The Trade by John F Carter”

The appendix contains two versions of the source code:

  • MetaTrader 5
  • NinjaTrader 8

 

 

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