Adaptive Squeeze Momentum Pro

The Adaptive Squeeze Momentum Pro indicator is a multi-layered oscillator that combines volatility compression detection with ATR-normalized momentum and automated divergence scanning to identify market coiling and potential breakouts.

Usage

The indicator is used to identify periods of market consolidation (squeezes) and the subsequent direction of momentum when volatility expands.

• Momentum Histogram: The color-coded bars indicate both direction and strength. Bright green/red indicate accelerating momentum (Strong), while teal/dark red indicate decelerating momentum (Weak).
• Squeeze Background: An orange-tinted background appears when volatility bands contract inside the ATR channels. A longer squeeze typically suggests a higher-energy release.
• Divergences: Look for green (bullish) or red (bearish) "Div" labels. Bullish divergences during a squeeze often hint at an upward breakout, while bearish divergences suggest a downward move.
• Presets: Users can choose between "Conservative", "Default", "Aggressive", or "Scalping" modes to instantly adjust lookback periods and sensitivity based on their trading style.

Details

This tool improves upon the classic squeeze concept by using an ATR-normalized momentum calculation. By dividing raw momentum by the current ATR, the oscillator becomes dimensionless (typically ranging between -3 and +3), making it comparable across different assets like BTCUSD and EURUSD.

The volatility detection uses EMA-based bands rather than standard Bollinger Bands (SMA), allowing for faster responsiveness to recent price changes. It also features a 4-tiered squeeze intensity system based on the ratio between volatility width and channel width, distinguishing between mild and extreme compression.

Settings

Main Settings

• Squeeze Length: Lookback period for volatility bands and ATR channels.
• Source: The price data used for calculations (default is Close).
• Volatility Band Mult: Multiplier for the EMA-based bands; higher values trigger squeezes more easily.
• ATR Channel Mult: Multiplier for the ATR channel; lower values make the channel narrower.
• Momentum Length: Lookback for the momentum oscillator calculation.
• Preset: Pre-configured settings for various trading styles (Conservative, Aggressive, etc.).

Filters & Advanced

• Detect Divergences: Enables/disables automated divergence scanning.
• Divergence Lookback: Pivot detection sensitivity.
• Early Divergence: When enabled, signals appear on bar close without waiting for right-side confirmation.
• Use HTF Trend Filter: Filters divergence signals based on the trend of a higher timeframe EMA.
• Momentum Smoothing: Applies EMA smoothing to the histogram to reduce noise.

FAQ

How do I interpret the histogram colors?

Bright colors (Bright Green/Red) indicate momentum is moving away from the zero line (accelerating), while faded colors (Teal/Dark Red) indicate momentum is returning toward the zero line (decelerating).

What is the difference between Early and Confirmed divergence modes?

Early mode places labels immediately upon a potential pivot high/low at bar close, whereas Confirmed mode waits for a specific number of bars to pass to ensure the pivot is valid.

How can I access this indicator?

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