Weighted Squeeze and Momentum Signals for High-Beta Equities

Summary

This script describes a long-only setup intended for volatile, high-beta equities. It assigns points to several conditions: unusually high volume, a positive daily price gap, short EMA strength relative to a medium EMA, price above the short EMA, narrow Bollinger Bands, and positive five-day momentum. A signal requires price to be above the short EMA, RSI below a configurable ceiling, and the combined score to meet a minimum threshold. When flat, the strategy enters long; it exits through a trailing stop or when price falls below the short EMA while five-day momentum is sufficiently negative.

The source supplies example settings for its moving averages, RSI, volume average, Bollinger Band period, score threshold, and trailing exit. It also shows a position-size convention and commission assumption, but provides no backtest results or analysis of profitability. The title and accompanying description frame the method as a squeeze detector, although the script uses band compression as just one scoring component and does not require it by itself. Its high-beta equity focus and indicator thresholds may limit portability across assets and market regimes.

Key ideas

• The signal combines volume, gap, trend, band-width, and momentum conditions into a score.
• A minimum score and RSI ceiling gate long entries when price is above the short EMA.
• Long positions use a trailing exit and a separate momentum-based fade condition.
• Bollinger Band compression contributes to the score but is not a standalone entry requirement.
• The document supplies code settings but no performance evidence.

Tags

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