Squeeze Momentum Indi

Squeeze Momentum is a volatility and momentum indicator for MetaTrader 5, inspired by the well-known squeeze concept used to identify periods of low volatility before a potential expansion move.

The indicator compares Bollinger Bands with Keltner Channels to detect market compression. When the Bollinger Bands move inside the Keltner Channel, the market is considered to be in a squeeze phase. This condition often indicates that volatility is low and price may be preparing for a stronger directional move.

The indicator also includes a momentum histogram based on a linear regression calculation. This histogram helps traders evaluate the potential direction and strength of the move after the squeeze is released.

Main Features

• Detects squeeze compression using Bollinger Bands and Keltner Channels
• Shows squeeze-on, squeeze-off, and neutral conditions on the zero line
• Displays a linear regression momentum histogram
• Uses different histogram colors to show momentum direction and acceleration
• Works in a separate indicator window for clean chart analysis
• Includes adjustable Bollinger Band and Keltner Channel parameters
• Supports True Range or High-Low range calculation for Keltner Channel logic
• Designed with confirmed closed-bar logic for stable historical signals
• Suitable for forex, indices, commodities, crypto, and other MT5 symbols

How to Read the Indicator

Black marks on the zero line indicate that the market is currently in a squeeze condition. This means Bollinger Bands are inside the Keltner Channel, showing reduced volatility.

Gray marks indicate squeeze release. This means the volatility compression has ended and the market may begin a stronger movement.

Blue marks indicate a neutral condition where the market is neither in a full squeeze nor in a confirmed squeeze release state.

The histogram shows momentum direction:

• Histogram above zero suggests bullish momentum
• Histogram below zero suggests bearish momentum
• Brighter positive bars indicate strengthening bullish momentum
• Darker positive bars indicate weakening bullish momentum
• Brighter negative bars indicate strengthening bearish momentum
• Darker negative bars indicate weakening bearish momentum

Basic Usage Idea

A common way to use this type of indicator is to wait for a squeeze condition, then watch for the first squeeze release signal. After the release, traders may use the histogram direction as market context.

For example, if the squeeze releases and the histogram is above zero, it may suggest bullish momentum. If the squeeze releases and the histogram is below zero, it may suggest bearish momentum.

Momentum color changes can also be used as an early warning that the current move is losing strength.

Recommended Use

This indicator is best used as a volatility and momentum confirmation tool, not as a standalone trading system. For better decision-making, combine it with trend analysis, support and resistance, market structure, ADX, WaveTrend, moving averages, or your own trading strategy.

Non-Repaint Design

The indicator is designed to use confirmed closed-bar calculations for historical signals. Important squeeze and momentum states are not confirmed using the currently forming candle. This helps keep past signals stable and suitable for strategy review.

Risk Warning

This tool does not predict future price movement and does not guarantee profitable trades. It is designed for chart analysis and decision support only. Always use proper risk management and test any strategy carefully before using it in live trading.