Squeeze Indicator for Volatility Compression and Momentum

Summary

This document describes an MQL4 indicator based on the Squeeze approach discussed in John Carter’s trading book. It tracks compression using Bollinger Bands and Keltner Channels, with changes to their calculations in this revision. Compression values are plotted around a zero line, while momentum is displayed as a smoothed histogram that rises or falls above or below zero.

The indicator combines volatility compression with momentum direction in a visual display intended to make both easier to assess. Its momentum smoothing draws on a linear regression technique from another indicator. The document gives implementation background and attribution, but no entry or exit rules, market examples, performance results, or risk guidance. It therefore explains how the indicator presents market conditions rather than demonstrating that it predicts breakouts or produces profitable trades. Traders would need to define and test their own rules and assess the indicator across relevant instruments and timeframes.

Key ideas

• The indicator uses Bollinger Band and Keltner Channel calculations to represent volatility compression.
• Compression values are displayed around a zero line.
• Momentum is smoothed and shown as a positive or negative histogram.
• The description provides no trading rules or performance evidence.

Tags

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