Squeeze Box [DW]This is an experimental study designed using data from Bollinger Bands to determine price squeeze ranges and active levels of support and resistance.
First, a set of Bollinger Bands using a Coefficient of Variation weighted moving average as the basis is calculated.
Then, the relative percentage of current bandwidth to maximum bandwidth over the specified sampling period determines the relative squeeze.
The box is outlined by drawing the current highest and lowest source value over the sampling period whenever a squeeze is active.
I've included the COVWMA in the visualization for additional confirmation of price activity.
Custom Bar color scheme is included.
Squeeze
Trendstone Squeeze v1.0The idea of the Squeeze is to figure out when the market is primed for a movement. The script is based on the excellent description of John Carter on the second edition of his book. I made a few changes regarding the sources of data, he uses a plain momentum oscillator, I have added an aggressive and a conservative profile. Aggresive profile is good for entries as the oscillator has a faster response while the conservative is better for entries as it will keep you in the trade. In conjunction with other tools like volatility adjusted bands you can create rules that would use both triggers.
ST_MultiSqueezeLiteDisplays the status of the squeeze on multiple time frames on the base chart. This "Lite" version of the indicator is available to those who purchased the full version for TOS or TradeStation upon request.
Simpler Trading SqueezeWhen the Bollinger Bands cross inside the Keltner Channels this indicates a quiet period in the market AKA “it’s in a squeeze” and when the “squeeze fires” this means the Bollinger Bands have crossed outside of the Keltner Channels and price is moving.
The oscillator is a momentum indicator identifying which direction the squeeze has fired. If a squeeze “loses momentum” that means the move is over.
Again, the indicators that embody the Squeeze is available for free on all trading platforms, BUT if you don’t want to go cross eyed looking at all the squiggle lines and want an easy to use visual representation then pick up the Squeeze for your trading platform today.
Squeeze Momentum on Reversal Strategy** From the original work of LazyBear ** Thanks for his Squeeze Momentum indicator
This strategy gives acceptable result on EUR/USD - 1H chart with default parameters
Keltner Channels Trending SqueezeDark green cloud indicates long term up trend
Light green cloud indicated short term up trend within long term uptrend
Light red could indicates long term downtrend
Dark red indicates short term downtrend
Green circles indicate upward trend overall
Red circles indicate downward trend overall
Orange circles indicate possible squeeze building. THe longer the squeeze the more drastic a price change once it breaks out either direction.
Version 1 of this script. Currently working on 2.
[RS]Volatility Explosive Measure V0EXPERIMENTAL:
Measures the volatility range of current price range, can help detect squeezes as well explosive moves
Patrick's Buy/Sell HistogramSimply look for a 12 point long bar and that's a perfect time to buy the security
UCS_Squeeze_OptimizationSqueeze Momentum Indicator - Optimized
All Updates from Version 3 + Squeeze Optimized further.
UCS_Squeeze_Timing-V3Another Version with More Features . I am confident enough this works fine now. I am Sure this will be a valuable tool for you guys who love squeezes.
///////////////// This can be further optimized, Let me know with a comment, if you still need this to be optimized. ////////////////////
This update includes
- Added Options to detect squeeze using Heikin Ashi Candle
- Added Options to use BBR or Momentum (ROC) for the Momentum Histogram
- Custom Momentum Smoothing time period
- Removed the Separate Look back periods for BB/KC - Since it doesn't really make sense using different lengths for KC and BB.
HA Closes can be really helpful in trading ETFs like FXE, GLD, FXY, SLV etc, which constantly gaps on daily basis. This helps in smoothing out. And most Importantly it Lines up with the Underlying's Squeeze.
[The Next Major Version is currently being Back tested with better timing triggers etc...... That will replace all other Squeeze indicators in the market - Some Major upgrades have been done to the squeezes to read the consolidation is with support or resistance. Also plan on adding best bet entries and pre-breakout signals. So far so good, this recent contradicting trends in daily / weekly in the market is making the indicator hard to work per theory]
The delay is because, I do not like to post any script (with signals) without sufficient back testing . I will not post these indicator with signals, unless I am sure it works per my theoretical derivations.
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Thanks for Being Patient and all your support.
Until then - Good Luck Trading.
UCS_Squeeze_Timing-V2Statistically, Squeeze fires in the direction of strength (Up or Down). By replacing the Rate of Change with Bollinger Band % BB, allows us to easily pick the direction to trade the Squeeze. With the knowledge of Price Pattern, it makes it even easier.
I have identified 4 Setups that works wells with this. I will let you explore and comment. Could possibly initiate arguments and can identify a few more.
Nothing is perfect, but probable.
Using this with the Timing V1 Signals - It is easier to sneak in. More variations to this in future. Will need time to backtest other variations.
UCS_Squeeze_Timing-V1There is an important information the Squeeze indicator is missing, which is the Pre Squeeze entry. While the Bollinger band begins to curves out of the KC, The breakout usually happens. There are many instances that the Squeeze indicator will fire, after the Major move, I cant blame the indicator, thats the nature (lagging) of all indicators, and we have to live with it.
Therefore pre-squeeze-fire Entry can be critical in timing your entry. Timing it too early could result in stoploss if it turns against you, ( or serious burn on options premium), because we never know when the squeeze will fire with the TTM squeeze, But now We know. Its a little timing tool. Managing position is critical when playing options.
I will code the timing signal when I get some time.
Updated Versions -
Indicator: Custom COG channelThis is my custom channel (Bear Channel!? :)) derived from BB/STARC. It uses both ATR/STDEV for plotting the bounds.
I use COG (Center of Gravity) for deriving the baseline. This enables it to track the price action better than many other channels that make use of MAs or simply "close". Indicator also marks "squeezes" (stdev bands come inside ATR bands). Pay attention to these, as these usually indicate a move.
I am still exploring this indicator on different BTCUSD time frames, would love to hear your feedback / setups for other instruments.
Code for this indicator: pastebin.com
Code for COG fibs I mentioned in the comments: pastebin.com
