Squeeze base indicators

[januson 10]

Hello.

I've read alot of The Squeeze Indicator and the different enhanced ones that comes into play - very interesting!

 

I'm trying to grasp some base knowledge and wanted to try program such an indicator by myself for use in Wealth-Lab.

 

I've also watched the video The Squeeze Indicator

It's concept is based on capturing breakout moves by using the Bollinger Bands and the Keltner Channels and by using the momentum also.

 

1. What periods and standard deviation are used in Bollinger Band?

2. What EMA and ATR are used for the Keltner Channel?

 

Kind regards

Janus

[walterw 10]

Januson : the formula of the ttm squezze posted on this forum is as follow :

 

 

for the central part that takes the squeeze you got atr 20 with1.5 sd and bb 20 with sd 1.... when bb is inside atr you get red dots, outside blue dots....on the other the histogram is LinearRegValue(price-((Highest(H, Length)+Lowest(L, Length))/2 + xAverage(c,Length))/2,Length,0);

where the length is 20... thats it.... on some software linear reg value = least square moving average... ( same uses woodie ).... cheers Walter.

 

 

just in case you need more data this is the ts code :

 

 

[LegacyColorValue = true];

 

 

 

 

{@@14439@@}

{04/05/2006}

//Updated by TradingDude, fixed "division by zero error"

 

{02/16/2005}

{Updated by Redlock}

{

Well, I have been working in this indicator. I have made a couple of changes:

(1) that if the momentum changes direction, it changes color.

(2) I have taken out the plotting of the alertline

(3) have the dots plotted along the axis

(4) Have changed the name of the indicator to BBSqueeze (cuts down on confusion).

 

I think that you will find that it resembles what is on the TTM indicator.}

 

{------------------------------------------------------------------}

{mmillar, 05/12/2005

For anyone interested I made a small change to the indicator(s) above.

I found that the indicator displayed fine for ES, YM etc but screwed up for FX -

this is due to the number of decimal places used by the symbol.

I just added a multiplier so the indicator is normalised across all symbols.

 

Add the following lines...

Vars: LHMult(0);

if ( barnumber=1 ) then Begin

LHMult=pricescale/minmove;

end;

 

And modify the following line so that it includes the LHMult variable...

 

Plot3(value2*LHMult, "NickmNxtMove", color);

 

}

 

{ Bolinger Band Squeeze (BBS) Indicator }

 

{ A variation of an idea by nickm001 (Originally coded by eKam) that when Bollinger Bands (BB) fit inside

the Keltner Channel (KC), a breakout is about to occur. It works on longer term charts, such as

15 minute to daily charts.

 

This code creates an indicator that plots the ratio of BB width to KC width. When BB and KC widths are

the same, the ratio (BBS_Ind)is equal to one (1). When the BB width is less than the KC Width (i.e. BB

fit inside KC), the BBS_Ind is less than one and a breakout is indicated.

 

An Alert Line is provided to indicate the level at which the trader considers that the "sqeeze is on" and

a breakout is eminant.

 

Coded by Kahuna 9/10/2003

 

Added by eKam: 9/10/2003

The average of where price has been relative to the Donchian mid line and Exponential average of the

same length is also plotted as an attempt to predict the direction of the breakout.

 

Added 2/1/2005 For decreasing Delta bar....darker colors to highlight the change.}

 

Inputs: {------------------------------------------------}

Price(Close),

Length(20), { Length for Average True Range (ATR) & Std. Deviation (SD) Calcs }

nK(1.5), { Keltner Channel ATRs from Average }

nBB(2), { Bollinger Band Std. Devs. from Average }

AlertLine( 1 ), { BBS_Index level at which to issue alerts }

NormalColor( Red ), { Normal color for BBS_Ind }

AlertlColor( Blue ); { Color for BBS_Ind below alert line }

 

 

Variables: {---------------------------------------------}

ATR(0), { Average True Range }

SDev(0), { Standard Deviation }

BBS_Ind(0), { Bollinger Band Squeeze Indicator }

alertTextID(-1),

Denom(0),

LHMult(0);

 

 

 

if ( barnumber=1 ) then

Begin

If minmove <> 0 then

LHMult = pricescale/minmove;

end;

 

if barnumber = 1 and alertTextID = -1 then

alertTextID = Text_New(date,time,0,"dummy");

 

{-- Calculate BB Squeeze Indicator ----------------------}

ATR = AvgTrueRange(Length);

SDev = StandardDev(Price, Length, 1);

 

Denom = (nK*ATR);

If Denom <> 0 then

BBS_Ind = (nBB * SDev) /Denom;

 

If BBS_Ind < Alertline then

SetPlotColor(1, NormalColor)

else

SetPlotColor(1, AlertlColor);

 

{-- Plot the Index & Alert Line -------------------------}

Plot1(0, "BBS_Ind");

 

{-- Plot delta of price from Donchian mid line ----------}

value2 = LinearRegValue(price-((Highest(H, Length)+Lowest(L, Length))/2

+ xAverage(c,Length))/2,Length,0);

 

var:color(0); color = yellow;

 

if value2 > 0 then

if value2 > value2[1] then

color = green

else

color = darkgreen;

 

if value2 < 0 then

if value2 < value2[1] then color = red

else

color = darkred;

 

Plot3(value2*LHMult, "NickmNxtMove", color);

{plot3(value2,"BB Squeeze",color);}

 

{-- Issue Alert when the Squeeze is On ------------------}

if BBS_Ind crosses below AlertLine

and Text_GetTime(alertTextID) <> time then

begin

text_setLocation(alertTextID, date, time, 0);

Alert("Check for Squeeze Setups on " + SymbolName);

end;

 

{-- Issue Alert when the Squeeze Releases ---------------}

if BBS_Ind crosses above AlertLine

and Text_GetTime(alertTextID) <> time then

begin

text_setLocation(alertTextID, date, time, 0);

Alert("Squeeze is Over on " + SymbolName);

end;

 

if BBS_Ind crosses below AlertLine then

SetPlotColor(1, Green);

[januson 10]

What can I say... I just love this forum and the contributors.

[olie1018 10]

is this formula for trade station or esignal?

 

jim

[zdo 20]

is this formula for trade station or esignal?

 

jim, TradeStation...

[olie1018 10]

Does anyone have the ttm squeeze indicator?

 

Jim

[danhoyda 10]

thanks very much for the program, can someone please clarify some of the programs features. what does it mean when the alert bar changes from blue to green to red. and what does it mean when the green has gone to dark green and the red has gone to dark red.

[danhoyda 10]

can you guys tell me what is happening when the red line becomes dark red and the green becomes dark green?