Squeeze Pro Overlays for Volatility Contraction and Breakout Signals
Summary
This overlay indicator combines Bollinger Bands with three Keltner Channel widths to classify low, medium, and high volatility squeezes. It derives a momentum series from the deviation of price from a recent range and moving average, then uses its direction and level to color candles and create configurable directional signals. Options include early-entry and exit coloring, squeeze-duration choices, and several signal definitions, such as momentum change, zero crossing, basis-line position, divergence, or a combined score.
The script can also mark Bollinger Band or Keltner Channel breaches following a squeeze, with direction determined by whether price is above or below the basis line. It provides configurable visual overlays and signal arrows, but the supplied material reports no backtest results or performance evidence. Signal behavior depends on chosen squeeze, duration, and momentum rules; the indicator alone does not demonstrate that a breakout will continue or that the signals are profitable.
Key ideas
- Squeeze conditions are identified by comparing Bollinger Bands with low, medium, and high Keltner Channel widths.
- A momentum series based on price deviation helps color candles and generate directional signals.
- Users can select among several signal rules and squeeze-duration definitions.
- The overlay marks channel or band breaches that follow squeeze conditions.
- The document describes indicator mechanics but provides no evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.