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  • Squart Trading View

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    Chandrashekar B
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    This document describes a script that analyzes volatility squeezes based on Bollinger Bands and Keltner Channels. It identifies three levels of squeeze (orange, red, yellow) based on the tightening of these indicators. A green dot signals a break of the squeeze. The script is intended to be used with another indicator showing Squeeze Pro arrows. It analyzes volatility contractions that often precede larger moves, and traders should be aware of trend direction using the momentum histogram.

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    How to trade squart and trading view formula

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    squart trading view

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    This document describes a script that analyzes volatility squeezes based on Bollinger Bands and Keltner Channels. It identifies three levels of squeeze (orange, red, yellow) based on the tightening of these indicators. A green dot signals a break of the squeeze. The script is intended to be used with another indicator showing Squeeze Pro arrows. It analyzes volatility contractions that often precede larger moves, and traders should be aware of trend direction using the momentum histogram.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    56 views2 pages

    Squart Trading View

    Uploaded by

    Chandrashekar B
    This document describes a script that analyzes volatility squeezes based on Bollinger Bands and Keltner Channels. It identifies three levels of squeeze (orange, red, yellow) based on the tightening of these indicators. A green dot signals a break of the squeeze. The script is intended to be used with another indicator showing Squeeze Pro arrows. It analyzes volatility contractions that often precede larger moves, and traders should be aware of trend direction using the momentum histogram.

    Copyright:

    © All Rights Reserved
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    of 2

    //@version=4

    //
    //@originalauthor Makit0
    //
    //script based in:
    // original John Carter's ideas (SQUEEZE & SQUEEZE PRO)
    https://www.simplertrading.com/
    // LazyBear's script (Squeeze Momentum Indicator)
    https://www.tradingview.com/script/nqQ1DT5a-Squeeze-Momentum-Indicator-LazyBear/
    //
    // USE IT IN CONJUNCTION WITH THE SQUEEZE PRO ARROWS INDICATOR
    //
    // This system is based in the volatility reversion to the mean: volatility
    contraction leads to volatility expansion and the other way on
    // The dot signal is a warning of volatility compression, more often than not this
    leads to a expansion of volatility and a move in the action price usually bigger
    than the expected move
    // Be aware of the trend direction, use the momentum histogram to see the slope
    direction
    //  
    // There are 3 levels of compression:
    // Level 1: ORANGE, the lesser compresion level
    // Level 2: RED, the normal level marked by the original squeeze indicator
    // Level 3: YELLOW, the max compression level
    // The more the compression the bigger the after move
    //
    // The GREEN dots signal the volatility expansion out of the squeeze ranges
    //
    study(title="SKS_SQZPRO", shorttitle="SQZPRO", overlay=false, precision=1)

    source = close
    length = 20
    ma = sma(source, length)
    devBB = stdev(source, length)
    devKC = sma(tr, length)

    //Bollinger 2x
    upBB = ma + devBB * 2
    lowBB = ma - devBB * 2

    //Keltner 2x
    upKCWide = ma + devKC * 2
    lowKCWide = ma - devKC * 2

    //Keltner 1.5x
    upKCNormal = ma + devKC * 1.5
    lowKCNormal = ma - devKC * 1.5

    //Keltner 1x
    upKCNarrow = ma + devKC
    lowKCNarrow = ma - devKC

    sqzOnWide = lowBB >= lowKCWide and upBB <= upKCWide  //WIDE SQUEEZE: ORANGE
    sqzOnNormal = lowBB >= lowKCNormal and upBB <= upKCNormal  //NORMAL SQUEEZE: RED
    sqzOnNarrow = lowBB >= lowKCNarrow and upBB <= upKCNarrow  //NARROW SQUEEZE:
    YELLOW
    sqzOffWide = lowBB < lowKCWide and upBB > upKCWide  //FIRED WIDE SQUEEZE: GREEN
    noSqz = sqzOnWide == false and sqzOffWide == false  //NO SQUEEZE: BLUE

    //Momentum Oscillator
    mom = linreg(source - avg(avg(highest(high, length), lowest(low, length)),
    sma(close, length)), length, 0)

    //Momentum histogram color


    mom_color = iff(mom > 0, iff(mom > nz(mom[1]), color.aqua, color(#0000ff)),
    iff(mom < nz(mom[1]), color(#ff0000), color(#ffeb3b)))

    barcolor(mom_color, title="MOM Bars")

    //Squeeze Dots color


    sq_color = noSqz ? color.blue : sqzOnNarrow ? color.yellow :
       sqzOnNormal ? color(#ff0000) : sqzOnWide ? color.gray : color(#00ff00)

    plot(mom, title='MOM', color=mom_color, style=plot.style_histogram, linewidth=5)


    plot(0, title='SQZ', color=sq_color, style=plot.style_circles,  linewidth=3)
    plot(mom, title='MOMLine', color=color(#b2b5be), style=plot.style_line,
    linewidth=2)

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