[E5 Trading] Squeezes & Breakouts

2023년 1월 22일

E5 Trading Squeezes & Breakouts is a powerful indicator that works well on all timeframes with proper risk management.

• Squeezes occur when an asset's price volatility falls to statistically low levels.
  
• Breakouts from the squeeze are typically violent and potentially highly profitable if the trader can get in the trade early and catch the breakout in the right direction.
  
• E5 Trading Squeezes & Breakouts was built to help traders take advantage of these squeeze play opportunities.
  

Squeezes Visualization

• This indicator lets traders know whenever price action is in a squeeze for any asset on any timeframe.
  
• Volatility bands display on the chart along with colored squeeze bands and channel fills.
  
• Toggle (Squeeze Bands) to display "the squeeze" when price action is in a low-volatility range. Default (On).
  
• The color setting of the squeeze bands controls the color of the channel fill and the squeeze table in the lower-right corner of the chart.
  

Volatility Bands

• Gradient shading represents reversal zones based on Bollinger Bands (BB).
  
• The likelihood of price reversion towards the mean (i.e., basis) increases the further price action pushes into the darker shaded zones.
  
• The middle area inside the shaded bands (i.e., same color as chart background) is the Keltner channel.
  
• The Keltner channel is another volatility-based method used to identify breakouts and mean reversion trading opportunities.
  
• Keltner channel boundaries calculate using the exponential moving average (EMA) and average true range (ATR).
  
• Toggle (Volatility Basis) to display the basis line (i.e., mean) of the volatility bands. Default (Off).
  

Squeeze Table

• The Squeeze Table appears in the lower right-hand corner of each chart when the indicator is turned on.
  
• The squeeze table displays the squeeze status on the current timeframe plus the commonly used higher timeframes for each asset.
  
• The squeeze table will indicate “Sqz On” next to the respective timeframe whenever a squeeze is occurring. The timeframes available in the squeeze table are 5m, 15m, 1H, 4H, D, and W.
  

Squeeze Early Entry & Breakout Signals

• Squeeze Early Entry and Breakout Signals can only occur once price action has started a squeeze.
  
• Pay attention to assets that are currently in a squeeze and be ready to take action because explosive price moves are coming soon!
  
• Traders should use a stop-loss on every trade because squeeze fake-outs occur; however, the upside potential of squeeze breakouts that work out can be massive.
  
• Preserve capital with good risk management and ride the winners.
  

Squeeze Early Entry

• Toggle (Squeeze Early Entry) to display long and short trade entry signals that offer a clue about the potential squeeze breakout direction.
  
• These early entry signals provide traders with an opportunity to start building a position while in a low-volatility squeeze in anticipation of a violent breakout.
  
• Note: Squeeze Early Entry signals may not result from every squeeze.
  

Squeeze Breakout

• These signals flag when the price breaks out of a statistically low-volatility period.
  
• This is either the beginning of a potentially massive move or a nasty fake-out, which is why traders MUST use a stop-loss on every trade.
  
• Toggle (Squeeze Breakout) to display long and short squeeze breakout trade entry signals. Default (On).
  
• Note: Squeeze Breakout signals may not result from every squeeze.
  

2023년 2월 12일

릴리즈 노트

• Added Squeeze Breakout Reversal signals on high timeframes only, including 4H and higher.
  
• These Squeeze Breakout Reversal signals flag as soon as the breakout shows signs of becoming a fakeout.
  
• Added Alerts for the Squeeze Breakout Reversal signals (Bull | Bear).
  
• Modified the default color of the Squeeze Bands and Squeeze Channel Fill.
  
• Changed "Volatility Bands" nomenclature to "Volatility Zones".