Squeeze Momentum [Plus]

The Squeeze Momentum [Plus] indicator is a comprehensive volatility and momentum analysis tool designed to identify periods of price compression and potential explosive breakouts. It combines the classic TTM Squeeze logic with advanced momentum smoothing, multi-level squeeze detection, and auxiliary trend strength filters like ADX.

Usage

The indicator primarily functions by identifying "Squeezes," which occur when Bollinger Bands tighten and trade inside Keltner Channels. This suggests energy is building for a significant move.

• Squeeze Levels: The tool features three distinct squeeze intensities:
  • Gray Dot (Low Squeeze): The easiest to form, representing early compression.
  • Orange Dot (Original Squeeze): The standard John Carter squeeze setting.
  • Yellow Dot (Power Squeeze): Indicates extreme compression and high potential for a violent breakout.
• Momentum Histogram: Smoothed via linear regression, the histogram displays the direction and strength of the trend. Divergence can be automatically plotted to find potential reversals.
• Trend Strength (ADX): A built-in ADX line measures trend intensity. A rising white line suggests a strengthening trend, while a gray line indicates weakening momentum.
• Auxiliary Signals: The script includes a Hull Moving Average (HMA) signal for trend following and a "Williams Vix Fix" to help identify potential market bottoms during high-volatility panic phases.

Details

The "Momentum" component is calculated using the distance of the price from the average of the Bollinger Band and Keltner Channel midlines, then smoothed using linear regression for a cleaner visual output. Unlike traditional versions that use simple 20-period SMAs, this "Plus" version allows users to choose from over 20 different moving average types (EMA, WMA, ALMA, JMA, etc.) for both Bollinger Band and Keltner Channel calculations.

Settings

Core Settings

• Squeeze Input: Defines the source data for calculations (Default: Close).
• Length: The lookback period for Bollinger Bands and Keltner Channels.
• Bollinger Bands Calculation Type: Select the moving average method for the bands.
• Keltner Channel Calculation Type: Select the moving average method for the channel.

Visuals & Filters

• Color Format: Choose between 5 different color schemes for the histogram.
• Draw Divergence: Enables automatic detection and drawing of momentum divergences.
• Show ADX: Toggles the ADX line and its scaling factor.
• H Signal: Enables signals based on the Hull Moving Average.
• Filtered Entries (FE/AE): Toggles triangles for "Filtered" and "Aggressive Filtered" entry signals.

FAQ

How do I interpret the histogram colors? The histogram colors represent rising or falling momentum above and below the zero line. Darker colors typically represent a cooling off in the current trend direction.

What is the difference between the gray, orange, and yellow dots? They represent the degree of compression. Gray is a "low" squeeze, orange is "mid", and yellow is "high" (extreme compression).

How can I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.