Squeeze Momentum MTF

The Squeeze Momentum MTF indicator is a multi-timeframe volatility and momentum tool that visualizes cycle harmony across different time horizons. It extends the classic squeeze momentum concept by integrating secondary momentum histograms, ADX, and RSI into a single comprehensive interface to help traders identify periods of consolidation and explosive price action.

Usage

The indicator is primarily used to detect "squeezes"—periods where Bollinger Bands contract within Keltner Channels—indicating low volatility often followed by a significant move. By displaying multiple momentum histograms simultaneously, users can verify if higher timeframe cycles are in harmony with the current timeframe.

Key Features:

• Multi-Timeframe Histograms: View up to two additional momentum cycles from higher timeframes to confirm trend strength.
• Harmony Visualization: Optionally color chart candles based on the alignment of multiple momentum timeframes.
• Integrated ADX & RSI: Toggle an ADX line to measure trend strength and an RSI background to identify overbought/oversold conditions without cluttering the workspace.
• Cipher Dots: Includes wave-based dots for additional entry and exit timing.
• Information Table: A dashboard providing real-time data on the status of all active momentums and ADX values.

Details

The script calculates the "Squeeze" by comparing Bollinger Bands to Keltner Channels. The momentum histograms are derived from a linear regression of the price relative to the average of the high/low and a moving average. To ensure clarity when viewing multiple timeframes, the indicator includes a "General Scale" setting to normalize the height of histograms from different periods.

Settings

HTF Selection

• Higher Timeframe Selection: Choose between "Auto-Steps", "Multiple of Current TF", or "Fixed TF" for the secondary momentum layers.
• Multiple of Current TF 1/2: Set the multiplier for the automated HTF calculation.
• Fixed TF 1/2: Manually select specific timeframes (e.g., 4H, Daily).

Momentums

• MOM Length: The lookback period for the momentum calculation.
• Momentum HTF 1/2: Toggles for the additional timeframe histograms.
• Smooth Momentum: Applies smoothing to the histogram for a cleaner signal.

Squeeze & Scale

• SQZ Length: The period used for the Squeeze calculation.
• BB/KC MultFactor: Standard deviation and ATR multipliers for the bands and channels.
• General Scale: Adjusts the visual size of the histograms for better visibility.

Additional Modules

• Show Divergences: Enables automatic detection of regular and hidden divergences.
• Show ADX/RSI: Toggles the display of trend strength and relative strength oscillators.
• Show Table: Enables the on-screen dashboard for status monitoring.

FAQ

How do I interpret the "Harmony" colors?

When "Momentum color" or "Candle color" is enabled, the colors represent the alignment of the current momentum with the selected HTF momentums. Consistent coloring across timeframes suggests a higher probability trend.

What do the Cipher dots indicate?

Cipher dots are based on an EMA-derived oscillator (WaveTrend). They represent potential pivot points where momentum is shifting, often used as early signals before the histogram changes color.

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.