Squeeze momentum indicator lazybear mt44/18/2024 ![]() You can use the following as exit signals: ![]() If movements on different time-frames coincide, it intensifies signals. The average movement lasts for about 8-10 bars. You should stay in the trade until the histogram becomes bigger/smaller. If the histogram is above zero, a long position should be opened, if it is below zero – a short one. John Carter writes that, technically, the first grey dot shows the trade entry. At these moments, ‘energy is released’ and bands expand. Technically, the SM indicator looks for places where Bollinger Bands go outside ATR. Keltner Channel measures Average True Range (ATR).If they expand, it means that there was a breakout and the volatility increased. If they shrink, it means that the market is inactive. Bollinger Bands measure volatility in the market. Bollinger Bands measure a standard price deviation from the average value.In fact, Squeeze Momentum combines two indicators – Bollinger Bands with 20.2 settings and Keltner channel with 20 and 1.5 settings – and helps to find consolidation periods, after which a breakout may take place and the trend price movement may start. ![]() Despite the fact that SM is a technical indicator, it is not lagging and can give a warning about a price reversal. Similarly, it is dangerous to short new highs during an obvious bullish trend. However, if he buys on a new high during a flat, he will be losing his capital. įor example, a trader can confidently buy on a new high during a trend market ( how to identify a trend day ). It is also very important for traders to understand the current market state because different types of trades work differently in the trend and flat. Traders like to trade such breakouts very much because these breakouts are often followed by a strong and lengthy trend movement, on which they can make money. There is always a breakout after the flat movement (especially if it lasts long enough). The market consolidates 80% of time and only 20% of time it moves in a certain direction. Squeeze Momentum shows periods when volatility increases or decreases, in other words, when the market goes from the trend into flat movement and vice versa. He made USD 18.2 million on options and futures trading in 2020, which is 1,270% of annual yield. I hope that helps? I might not have the perfect settings here but I am always experimenting with new indicators.The indicator was created by John Carter. ![]() Dynamic trends line green for buys, reds for sells. When the price is bouncing around the bottom of the chart and keeps going back there like on this chart there is no interest from buyers at that point.Īnd 7. The Stochastic set at 5 5 5 shows you where the price is heading towards, at this point I have highlighted on the chart it is showing the price declining as the price is nearly overbought levels, when the blue line goes under the orange line, the price is also confirmed as going down. Maybe select the white background too on TV so that you can see the numbers more clearly as they are harder to see on a black background. Have a look at his indicator explanation page on Machine Learning: Lorentzian Classification - Indicator by jdehorty - TradingView. However the one in MT4 is most probably a bit better. It kind of acts a bit like Level 2 Data that AT uses in MT4. The buys are about to change completely and then we are in looking at sells only, so you let it push out until you see the highest bars at the bottom, wait to see the change of colour to a darker shade and then think about quitting your sell.Īnother change of direction towards buys.įrom the Lorentzian Indicator take note of the numbers. This might be a good place to think about selling your buys? Momentum is changing as the buy volumes are coming down and changing to the darker colours, so there is an early warning on a change of direction coming.
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