Squeeze Momentum Deluxe

2024년 2월 27일

The Squeeze Momentum Deluxe is a comprehensive trading toolkit built with features of momentum, volatility, and price action. This script offers a suite for both mean reversion and trend-following analysis. Developed based on the original TTM Squeeze implementation by LazyBear, this indicator introduces several innovative components to enhance your trading insights.

🔲 Components and Features

1. Momentum Oscillator - as rooted in the TTM Squeeze, quantifies the relationship between price and its extremes over a defined period. By normalizing the calculation, the values become comparable throughout time and across securities, allowing for a nuanced assessment of Bullish and Bearish momentum. Furthermore, by presenting it as a ribbon with a signal line we gain additional information about the direction of price swings.
   
2. Squeeze Bars - The original squeeze concept is based on the relationship between the Bollinger Bands and Keltner Channel, once the BB resides inside the KC a squeeze occurs. By understanding their fundamentals a new form of calculation can be inferred.
   
   

   method bb(float src, simple int len, simple float mult) =>                     method kc(float src, simple int len, simple float mult) =>                float basis = ta.sma  (src, len)                                                float basis = ta.sma  (src, len)    float dev   = ta.stdev(src, len)                                                float rng   = ta.atr  (     len)    float upper = basis + dev * mult                                                float upper = basis + rng * mult    float lower = basis - dev * mult                                                float lower = basis - rng * mult    [upper, lower]                                                                  [upper, lower]

   
   
   Both BB and KC are constructed upon a moving average with the addition of Standard Deviation and Average True Range respectively. Therefore, the calculation can be transformed to when the Stdev is lower than the ATR a squeeze occurs.
   
   

   method sqz(float src, simple int len) =>    float dev = ta.stdev(src, len)    float atr = ta.atr  (     len)    dev < atr ? true : false

   
   
   This indicator uses three different thresholds for the ATR to gain three levels of price "Squeeze" for further analysis.
   
3. Directional Flux- This component measures the overall direction of price volatility, offering insights into trend sentiment. Presented as waves in the background, it includes an OverFlux feature to signal extreme market bias in a particular direction which can signal either exhaustion or vital continuation. Additionally, the user can choose if to base the calculation on Heikin-Ashi Candles to bias the tool toward trend assessment.
   
4. Confluence Gauges - Placed at the top and bottom of the indicator, these gauges measure confluence in the relationship between the Momentum Oscillator and Directional Flux. They provide traders with an easily interpretable visual aid for detecting market sentiment. Reversal doritos displayed alongside them contribute to mean reversion analysis.
   
5. Divergences (Real-Time) - Equipped with a custom algorithm, the indicator detects real-time divergences between price and the oscillator. This dynamic feature enhances your ability to spot potential trend reversals as they occur.
   

🔲 Settings

• Directional Flux Length - Adjusts the period of which the background volatility waves operate on.
  
• Trend Bias - Bases the calculation of the Flux to HA candles to bias its behavior toward the trend of price action.
  
• Squeeze Momentum Length - Calibrates the length of the main oscillator ribbon as well as the period for the squeeze algorithm.
  
• Signal - Controls the width of the ribbon. Lower values result in faster responsiveness at the cost of premature positives.
  
• Divergence Sensitivity - Adjusts a threshold to limit the amount of divergences detected based on strength. Higher values result in less detections, stronger structure.
  

🔲 Alerts

• Sell Signal
• Buy Signal
• Bullish Momentum
• Bearish Momentum
• Bullish Flux
• Bearish Flux
• Bullish Swing
• Bearish Swing
• Strong Bull Gauge
• Strong Bear Gauge
• Weak Bull Gauge
• Weak Bear Gauge
• High Squeeze
• Normal Squeeze
• Low Squeeze
• Bullish Divergence
• Bearish Divergence
  
  As well as the option to trigger 'any alert' call.
  

The Squeeze Momentum Deluxe is a comprehensive tool that goes beyond traditional momentum indicators, offering a rich set of features to elevate your trading strategy. I recommend using toolkit alongside other indicators to have a wide variety of confluence to therefore gain higher probabilistic and better informed decisions.

2024년 3월 4일

릴리즈 노트

Fixed Bull\Bear momentum alerts.