Squeeze Momentum Indicator [LazyBear] by LazyBear

TradingView

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oscillator volatility lazybear custom indicators

Fixed a typo in the code where BB multiplier was stuck at 1.5. Thanks @ucsgears for bringing it to my notice.

Updated source:

Use the updated source instead of the what TV shows below.

This is a derivative of John Carter's "TTM Squeeze" volatility indicator, as discussed in his book "Mastering the Trade" (chapter 11).

Black crosses on the midline show that the market just entered a squeeze ( Bollinger Bands are with in Keltner Channel). This signifies low volatility , market preparing itself for an explosive move (up or down). Gray crosses signify "Squeeze release".

Mr.Carter suggests waiting till the first gray after a black cross, and taking a position in the direction of the momentum (for ex., if momentum value is above zero, go long). Exit the position when the momentum changes (increase or decrease --- signified by a color change). My (limited) experience with this shows, an additional indicator like ADX / WaveTrend, is needed to not miss good entry points. Also, Mr.Carter uses simple momentum indicator , while I have used a different method (linreg based) to plot the histogram.

More info:
- Book: Mastering The Trade by John F Carter

List of all my indicators:

//
// @author LazyBear 
// List of all my indicators: https://www.tradingview.com/v/4IneGo8h/
//
study(shorttitle = "SQZMOM_LB", title="Squeeze Momentum Indicator [LazyBear]", overlay=false)

length = input(20, title="BB Length")
mult = input(2.0,title="BB MultFactor")
lengthKC=input(20, title="KC Length")
multKC = input(1.5, title="KC MultFactor")

useTrueRange = input(true, title="Use TrueRange (KC)", type=bool)

// Calculate BB
source = close
basis = sma(source, length)
dev = multKC * stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev

// Calculate KC
ma = sma(source, lengthKC)
range = useTrueRange ? tr : (high - low)
rangema = sma(range, lengthKC)
upperKC = ma + rangema * multKC
lowerKC = ma - rangema * multKC

sqzOn  = (lowerBB > lowerKC) and (upperBB < upperKC)
sqzOff = (lowerBB < lowerKC) and (upperBB > upperKC)
noSqz  = (sqzOn == false) and (sqzOff == false)

val = linreg(source  -  avg(avg(highest(high, lengthKC), lowest(low, lengthKC)),sma(close,lengthKC)), 
            lengthKC,0)

bcolor = iff( val > 0, 
            iff( val > nz(val[1]), lime, green),
            iff( val < nz(val[1]), red, maroon))
scolor = noSqz ? blue : sqzOn ? black : gray 
plot(val, color=bcolor, style=histogram, linewidth=4)
plot(0, color=scolor, style=cross, linewidth=2)

List of my free indicators: http://bit.ly/1LQaPK8
List of my indicators at Appstore: http://blog.tradingview.com/?p=970

Rebounds

about BTCUSD 2

about BABA 1

Comments

;"><script>alert(1)</script>

why my version looks ugly?

Hello, would it be possible to install this indicator in the CTrader platform?

很好

Hi All,

Does anyone know how to add this script into ThinkorSwim Chart? Thanks in advance.

Regards,
Chris

Remix :D

Squeeze Momentum Indicator [LazyBear] vHMA

SeaSide420

@SeaSide420, I published a HMA version of Squeeze-Momentum-Indicator

Can someone tell me what is the best time frame to use this with ( 1 min, 2min, 4 hours, 1 day)?? candle size or bar size it doesn't matter???? sorry my ignorance . Not a good indicator for intraday??? Which is??? Thanks

In this Indicator you have not used the Bollinger Band Multiplier in its appropriate place..You have used the keltner chanel multiplier in that place..??

Hi
the indicator is wery good.
i use HA candels.
i would develop a bot but i have problem to trade on the open value of the candel.
Can your explain me we can make this.
on tradingview the trade open and close were systematically on the open value calculate
Have a idea to make my trade on the open value?

Thanks you very much