MP Squeeze Momentum for MT4

MP Squeeze Momentum is a volatility and momentum indicator derivated of "TTM Squeeze" volatility indicator introduced by John Carter. It capitalizes on the tendency for price to break out strongly after consolidating in a tight range.

Introduction:

The volatility component of MP Squeeze Momentum measures price compression using Bollinger Bands and Keltner Channels. If the Bollinger Bands are completely enclosed within the Keltner Channels, that indicates a period of very low volatility. This state is known as the squeeze. When the Bollinger Bands expand and move back outside of the Keltner Channel, the squeeze is said to have released: volatility increases and prices are likely to break out of that tight range.

This Indicator has two versions which can be selected by user:

• Histogram
• Line Graph

In the first version a momentum oscillator is used to show the expected direction of the move when the squeeze fires. This histogram oscillates around the zero line; increasing momentum above the zero line indicates an opportunity to purchase long, while momentum falling below the zero line can indicate a shorting opportunity.

The second version Indicator includes line graph of the main indicator instead of using a Histogram and a second Signal line (5 bars SMA of the original line) to provide visual BUY/SELL signals.

Squeeze On/Off Dots:

The on/off state of the squeeze is shown with small dots on the zero line of the indicator: yellow dots indicate that the squeeze is on. This signifies low volatility, market preparing itself for an explosive move (up or down). Gray dots show "Squeeze release".

Settings:

• Indicator type (Histogram/Line Graph)
• Bollinger Bands period
• Bollinger Bands multiplier
• Keltner Channel period
• Keltner Channel multiplier
• Use TrueRange (KC)
• Signal line period
• Histogram color growing above zero line
• Histogram color falling above zero line
• Histogram color falling below zero line
• Histogram color growing below zero line
• No Squeeze marker color
• Squeeze On marker color
• Squeeze Off marker color
• Main line color
• Signal line color

Usage:

In Histogram version:

In Line Graph version:

#Tags: Squeeze Momentum, Squeeze Momentum Indicator, Squeeze Momentum Oscillator, Volatility Indicator, Momentum Indicator, Volatility, Momentum, Buy Signal, Sell Signal, Bollinger Bands, Keltner Channel