# Squeeze Release Direction Grades the direction of every squeeze fire instead of assuming it: when 20-period Bollinger Bands re-emerge from 1.5x Keltner Channels, five votes (momentum sign, band tilt, close-based breakout side, volume expansion and the daily 50 EMA trend) combine into a Bullish, Bearish or Ambiguous read with a Strong, Moderate or Weak grade, labeled on the chart for breakout traders wary of head fakes. - Indicator in the LuxAlgo Library, by LuxAlgo, published May 16, 2026. - Access: free. - Concepts: [Squeeze Release Direction](https://www.luxalgo.com/library/concept/squeeze-release-direction/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=buvsrt15y6jqc01gt0zdo7xb - Page: https://www.luxalgo.com/library/indicator/squeeze-release-direction/ **Squeeze Release Direction** answers the question a squeeze deliberately leaves open, the definitive clean treatment of [squeeze release direction](https://www.luxalgo.com/library/concept/squeeze-release-direction/) as an evidence poll rather than a single cue. While the Bollinger Bands run inside the Keltner Channels a neutral compression zone tracks the coil; on the fire bar (the bands emerging again) five independent pieces of evidence each cast a vote, and the net score becomes the read, graded by how strongly the votes agree. ## How to Trade the Squeeze Release Direction? - **Strong or Moderate labels**: a net score of at least four or at least two on one side: the fires worth treating directionally, the vote breakdown a hover away. - **Weak labels**: a one-vote margin; evidence barely leans, so demand follow-through before committing. - **Ambiguous labels**: the votes cancel: head-fake territory, so stand aside or bracket the coil. - **Zone recolor**: the compression box freezes at the fire and takes the read's color, keeping the coil's extent visible as the reference range. With Skip Counter-Trend Fires enabled, a read that fights the higher-timeframe trend is downgraded to ambiguous rather than handed a side. ## Squeeze Release Direction Settings - **Squeeze Length** (default 20), **Bollinger Bands Multiplier** (default 2), **Keltner Channels Multiplier** (default 1.5): the shared trigger geometry; a tighter Keltner multiplier demands deeper compression before a squeeze can fire. - **Source** (default close): series feeding the trigger bands and the momentum evidence. - **Momentum Length** (default 20): the histogram whose sign supplies the first vote. - **Band Tilt Lookback** (default 3): bars over which the basis slope is judged. - **Volume Average Length** (default 20) and **Volume Expansion Multiplier** (default 1.5): the expansion test; without expansion the volume vote stays neutral. - **Higher Timeframe** (default D) with **EMA Length** (default 50): the trend vote. - **Skip Counter-Trend Fires** (default off): the bias-overlay mode described above. ## Frequently Asked Questions ### What does this add over the TTM Squeeze? The classic [TTM Squeeze build](https://www.luxalgo.com/library/indicator/ttm-squeeze/) reads the release from momentum alone; this engine keeps that cue as one vote among five and grades the result, so disagreement between the cues is visible instead of hidden. ### Why is the breakout vote read from the close? Because a tick beyond a band is exactly the material head fakes are made from. Requiring the close beyond the band turns that vote into a confirmation rather than a reflex. ### What are the three alerts? Bullish, bearish and ambiguous squeeze releases, one per read, each firing on the bar the bands leave the channels. ## Related indicators - [Nadaraya-Watson Envelope](https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope.md - [TTM Squeeze](https://www.luxalgo.com/library/indicator/ttm-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/ttm-squeeze.md - [Fibonacci Bollinger Bands](https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands.md - [Double Bollinger Zones](https://www.luxalgo.com/library/indicator/double-bollinger-zones/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/double-bollinger-zones.md - [Proximal Range Filter](https://www.luxalgo.com/library/indicator/proximal-range-filter/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/proximal-range-filter.md - [Bollinger Squeeze](https://www.luxalgo.com/library/indicator/bollinger-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/bollinger-squeeze.md - [Bollinger Bands Breakout Oscillator](https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator/) (Bollinger Bands): markdown at https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator.md - [Donchian MA Bands](https://www.luxalgo.com/library/indicator/donchian-ma-bands/) (Donchian Channels): markdown at https://www.luxalgo.com/library/indicator/donchian-ma-bands.md --- Source: https://www.luxalgo.com/library/indicator/squeeze-release-direction/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/