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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

 

 

6 Comments

    1. Hi!
      Gray and light gray colors are used by default, like neutral. Do not use them in any way.

  1. The 2nd plot “IsSqueezes” gives only the midline value which always remains at zero. Is there a way to plot the color change of the dots, or signal change when a dot prints on the line?

  2. I have not made this indicator for MT4. MT4 does not have such color change options.

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