Squeeze Momentum Indicator added Alerting + webhook

The Squeeze Momentum Indicator added Alerting + webhook indicator identifies periods of price consolidation and potential breakouts by analyzing the relationship between Bollinger Bands and Keltner Channels. It serves as a powerful volatility and momentum tool, signaling "squeezes" during low volatility and potential directional explosive moves when volatility returns.

Usage

The indicator oscillates around a zero line to represent momentum. The central "dots" or crosses indicate the volatility state:

• In Squeeze: Displayed when Bollinger Bands fall within the Keltner Channels. This suggests a period of low volatility and potential consolidation.
• Squeeze Release: Displayed when Bollinger Bands move outside the Keltner Channels. This indicates a breakout or a surge in volatility.

The momentum histogram provides directional bias:

• Green Bars: Indicate positive momentum. Bright green shows rising positive momentum, while dark green shows fading positive momentum.
• Red Bars: Indicate negative momentum. Bright red shows increasing selling pressure, while dark red shows waning negative momentum.

Details

The script is based on the classic Squeeze Momentum concept originally popularized by John Carter and later refined by various authors in the community. It combines two primary technical studies:

1. Bollinger Bands: Measures volatility based on standard deviations.
2. Keltner Channels: Measures volatility based on Average True Range (ATR).

A "Squeeze" occurs when the Bollinger Bands (the more reactive volatility measure) contract inside the Keltner Channels. When the bands expand back out, the squeeze is "released," often leading to a trending move. This version includes a momentum oscillator calculated via linear regression of price relative to a midline, smoothed by a signal line to determine precise release directions.

Settings

Main Settings

• Source: The price data used for calculations (default is Close).
• BB Length: The lookback period for the Bollinger Bands calculation.
• BB MultFactor: The standard deviation multiplier for the Bollinger Bands width.
• KC Length: The lookback period for the Keltner Channels.
• KC MultFactor: The multiplier applied to the ATR for the Keltner Channels width.
• Use TrueRange (KC): When enabled, uses True Range instead of simple High-Low range for Keltner Channels.
• Signal Length: The smoothing period for the momentum signal line, used to filter release conditions.

FAQ

How do I use the webhooks?

The indicator includes pre-formatted JSON messages for webhooks. To use them, select the "Webhook" versions of the alerts in the Alert creation menu and paste your destination URL (e.g., Discord or Telegram) into the Webhook URL field.

What is the difference between a grey and blue dot?

A grey dot (or standard cross) represents a squeeze release, suggesting active volatility. A blue dot (neutral) signifies that the bands are neither in a tight squeeze nor a standard release, representing a neutral volatility state.

How do I access this indicator?

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