Squeeze Momentum Indicator SMI

The Squeeze Momentum Indicator, identifies periods of low volatility ("squeeze") when Bollinger Bands are inside the Keltner Channel, marked by black crosses on the midline. This suggests the market is preparing for a significant move.

Gray crosses indicate a "squeeze release," signaling potential breakout. To use it, wait for the first gray cross after a black cross, then enter a trade in the direction of momentum (long if above zero, short if below). Exit when momentum shifts (color change in the histogram). For better entries, combine with indicators like ADX or WaveTrend.
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