The histogram will suggest how strong the current trend is and will tell you when to exit a trade on the trend's weakening. Tesla (TSLA)- Tesla is a great example of a growth momentum stock with higher volatility that works very well for trading the squeeze. The main idea behind this indicator is to establish trading ranges during the non-trending phase of the market ( blue squares) to enter on a breakout and a switch to red squares (trending phase). Real world examples of Squeeze trade setups.

If the squares are blue, the Bollinger bands are inside the Keltner channel, which suggests a flat sideways market.

If the squares are red, the Bollinger bands are outside the Keltner channel, which suggests that exchange rate is trending strongly.

The range of blue and red squares on the zero line indicate the current relationship between the Bollinger bands and the Keltner channel:

Falling momentum below the zero line (also downtrend) is marked with lighter red bars.Īdditionally, Bollinger Squeeze Basic offers an interesting volatility measure built into the main histogram.

Rising momentum below the zero line (downtrend) is marked with darker red bars.

Falling momentum above the zero line (also uptrend) is marked with lighter green bars.

Rising momentum above the zero line (uptrend) is marked with darker green bars.

The indicator uses the momentum to measure the trend's strength and direction: The squeeze momentum indicator is a type of momentum indicator that is mainly used to determine whether the volatility of the price movements of a security is high or low.

TriggerCandle (default = Previous) - the candle to issue alerts on: Previous - the most recently closed candle or Current - the yet unfinished candle.

This is usually the first sign of an impending. Once a price’s rate of price change starts to slow down, this is a signal that the trend is nearing exhaustion. Therefore, momentum indicators can measure how strong or weak a market trend is. Notifications should be properly configured in MetaTrader via Tools->Options->Notifications. A momentum indicator works by calculating the rate at which the price of a financial asset is changing.

EnablePushAlerts (default = false) - if true, MetaTrader's push notification alerts will be sent to your device upon the BB/Keltner arrows' change of color.

Email should be properly configured in MetaTrader via Tools->Options->Email.

EnableEmailAlerts (default = false) - if true, MetaTrader's email alerts will be sent on the BB/Keltner arrows' change of color.EnableNativeAlerts (default = false) - if true, MetaTrader's native pop-up alerts will be used on the BB/Keltner arrows' change of color.Momentum_Period (default = 12) - the period for the Momentum indicator.Keltner_Factor (default = 1.5) - the Keltner channel multiplication factor.

Keltner_Period (default = 20) - the period for the Keltner channel indicator. How can the Squeeze Momentum indicator be used The Squeeze Momentum indicator can be used to identify support and resistance levels.BB_Deviation (default = 2.0) - the Bollinger bands deviation parameter.BB_Period (default = 20) - the period for the Bollinger bands indicator.MaxBars (default = 300) - the maximum number of bars on the chart to apply the indicator to.If you are interested in Bollinger Squeeze indicators, you might also be interested in an advanced version - Bollinger Squeeze Advanced.

What is squeeze momentum indicator