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MACD Squeeze: Trading Momentum During Bollinger and Keltner Compression

Article MQL5 code base
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Summary

The MACD Squeeze indicator adapts the squeeze concept to a MACD histogram. It identifies a potential trading zone when Bollinger Bands contract inside Keltner Bands, using the compression as a condition for deciding when to focus on the MACD signal. The indicator displays the histogram with signal labels near its center line.

Its configurable inputs cover the fast and slow MACD averages, Bollinger Band period, deviation and averaging method, and Keltner Band period, deviation, ATR period and averaging method. The description explains the indicator’s construction and intended market condition, but does not specify entry and exit rules, position sizing, or a backtest. Band compression alone does not establish the direction or profitability of a trade, so users would need to define and evaluate a complete strategy separately.

Key ideas

  • A squeeze is identified when Bollinger Bands fit inside Keltner Bands.
  • The indicator applies the squeeze condition to a MACD histogram display.
  • Inputs allow adjustment of the MACD, Bollinger Bands, and Keltner Bands calculations.
  • The description provides no complete trading rules or performance evidence.

Tags

Technical indicatorsVolatilityMomentum

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.