Squeeze Momentum Indicator [LazyBear] vX

The Squeeze Momentum Indicator [LazyBear] vX indicator is a volatility regime and expansion bias tool designed to visualize periods of price compression and subsequent momentum release directly on the price chart. It provides traders with a framework to identify stored energy in the market and the directional pressure that follows once volatility expands.

Usage

The indicator can be used to identify two primary market states:

• Compression Regime: When Bollinger Bands are inside Keltner Channels, the market is in a "squeeze." This is visualized by neutral diamond markers at the top of the chart, signaling volatility contraction where energy is building for a potential move.
• Expansion (Release): When Bollinger Bands break outside the Keltner Channels, the squeeze "fires." This is signaled by triangle markers. The direction of the expansion is indicated by the triangle's orientation and color-coded pressure arrows on the chart.

Traders use the expansion pressure arrows to gauge the strength of a move. Stronger color intensities reflect accelerating momentum, while faded arrows suggest weak or dissipating pressure.

Details

The script integrates the classic Squeeze Momentum logic by LazyBear with enhanced visualization. It calculates the relationship between Bollinger Bands (standard deviation-based) and Keltner Channels (ATR-based).

• Squeeze Logic: A squeeze is active when the Bollinger Bands are narrower than the Keltner Channels.
• Momentum Engine: The expansion bias is calculated using a linear regression of price relative to the average of the Keltner Channel's midline and the high/low range over a specific period. This creates a "pressure" value that determines the bias of the volatility release.

Settings

• Show Squeeze Components: Toggles the visibility of the underlying Bollinger Bands and Keltner Channels on the chart.
• Show Squeeze Regime: Enables the top-of-chart markers (diamonds and triangles) representing volatility states.
• Show Expansion Pressure: Toggles the display of directional arrows that show momentum bias.
• Bollinger Bands (Length/Width): Adjusts the period and multiplier for the BB calculation, affecting squeeze sensitivity.
• Keltner Channel (Length/Width/TrueRange): Adjusts the parameters for the Keltner Channels. Enabling TrueRange accounts for price gaps.
• Momentum Smoothing: Sets the smoothing period for the expansion pressure engine. Lower values are more reactive; higher values filter noise.

FAQ

How do I interpret the diamond and triangle markers?

Diamonds represent a compression state (the squeeze), while triangles indicate that volatility has expanded and the squeeze has released in a specific direction.

What do the arrow colors signify?

Arrows represent expansion pressure. Green/Upward arrows indicate bullish bias, while Red/Downward arrows indicate bearish bias. The brightness of the color reflects the strength of that pressure relative to recent volatility.

How can I access Squeeze Momentum Indicator [LazyBear] vX?

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