Squeeze Momentum Indicator

Squeeze Momentum Indicator

This is a derivative of John Carter’s “TTM Squeeze” volatility indicator, as discussed in his book “Mastering the Trade” (chapter 11).

Black (or white) crosses on the midline show that the market just entered a squeeze ( Bollinger Bands are with in Keltner Channel). This signifies low volatility , market preparing itself for an explosive move (up or down). Gray crosses signify “Squeeze release”.

Mr.Carter suggests waiting till the first gray after a black cross, and taking a position in the direction of the momentum (for ex., if momentum value is above zero, go long). Exit the position when the momentum changes (increase or decrease — signified by a color change). My (limited) experience with this shows, an additional indicator like ADX / WaveTrend, is needed to not miss good entry points. Also, Mr.Carter uses simple momentum indicator , while I have used a different method (linreg based) to plot the histogram.

More info:
– Book: Mastering The Trade by John F Carter

(Description from the original author of this indicator LazyBear, all credits go to him).


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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

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  1. Al Wikah • 222 days ago #

    Bonjour Nicolas,
    Merci pour votre formidable travail de codage et de partage.
    Je n’ai pas trouvé le moyen de vous contacter directement, alors je me permets de le faire à travers ce commentaire.
    Je me forme depuis peu (2 ans) à la bourse et au trading et débute dans l’apprentissage du code via PRT.
    Pas mal d’indicateurs que j’ai utilisés mais, je constate que rien ne remplace une bonne stratégie.
    Quels livres ou formations sur les stratégies de trading me recommanderiez-vous ‘(en FR & EN)?
    Merci d’avance pour le retour.

  2. Violet • 222 days ago #

    Nicolas and readers, a warning:

    the code in prc_squeezemomentumindicator.itf is *not* the same as the one shown in the verbose explanation.
    The .itf file contains several errors.

    • Nicolas • 222 days ago #

      Not at all, we have tested it and it is the right file that contains the same code as the one described in this post. I feel that you have imported another file instead? There is another squeeze momentum indicator in the library.

  3. Violet • 221 days ago #

    I downloaded the .itf it again. This time the .itf version is different from the one I downloaded earlier this morning.
    But it still contains an error. You declare a mult variable:
    //mult = 2.0 //BB MultFactor
    and do not use it in the code.

    • Nicolas • 221 days ago #

      in this case, change the line 18 with:
      dev = mult * std[length](source)

  4. crolakstrading • 215 days ago #

    HI, Nicolas thanks very much for this indicator. Any possibility of making a screener for this to get a signal when the first grey cross and first histogram up or down close. to get a signal?

  5. rama • 215 days ago #

    This indicator is not picking up in automated program when the value crosses over or under zero

    • Nicolas • 215 days ago #

      it should

    • crolakstrading • 214 days ago #

      That’s great!! do you have any plans on making the screener? I did try to make the screener for this.. it’s really really complicated for me and failed big time 🙂

  6. Gianno82 • 214 days ago #

    Hi Nicolas, thank you very much for your suggestions.
    What does dark grey7red columns mean? It’s meaning an uptrend (dark red) and a downtrend (dark grey)…is it right?
    Thank you very much
    bye for now

    • Nicolas • 214 days ago #

      yes, a reversal of the current trend.

  7. crolakstrading • 214 days ago #

    length = 20 //BB Length
    mult = 2.0 //BB MultFactor
    lengthKC= 20 //KC Length
    multKC = 1.5 //KC MultFactor
    useTrueRange = 1 //0=false;1=true Use TrueRange (KC)
    // — end of settings

    // Calculate BB
    source = customclose
    basis = average[length](source)
    dev = multKC * std[length](source)
    upperBB = basis + dev
    lowerBB = basis – dev

    // Calculate KC
    ma = average[lengthKC](source)
    if useTrueRange then
    irange = tr
    irange = (high – low)
    rangema = average[lengthKC](irange)
    upperKC = ma + rangema * multKC
    lowerKC = ma – rangema * multKC

    sqzOn = (lowerBB > lowerKC) and (upperBB < upperKC)
    sqzOff = (lowerBB upperKC)
    noSqz = (sqzOn = 0) and (sqzOff = 0)

    data = source – (highest[lengthKC](high)+lowest[lengthKC](low)+average[lengthKC](close))/3
    val = linearregression[lengthKC](data)
    Result = 0
    if val>0 then
    if val>val[1] then
    Result = 9
    if val<val[1] then
    Result = 3
    SCREENER[result] (result AS "SqueezeMI")

    • mscharstrom • 179 days ago #

      Didnt work for me, would love to have this as a screener!

  8. Samurai • 214 days ago #

    Ciao Nicolas, complimenti per gli screener che condividi con noi sono il top!
    Volevo chiederti se potevi creare uno screener che trovava le azioni con i fondamentali migliori.

  9. FVtrading • 214 days ago #

    Good morning I’m new on the forum and on the platform. First of all thanks for the work done with this indicator. I’ve a question, how can I do a Proback test with this indicator? Many Thanks

  10. Jan • 213 days ago #

    Hallo FVtrading,
    if I understand you question correctly, and you want to use this indicator, do the following: download file as attached above Filename : prc_squeezemomentumindicator.itf , read eventual manual, clicking on the link above “How to import ITF files into ProRealTime platform?”, go to your PRT environment, and click on Import at the Indicators, then select the downloaded file, and it will be attached to your indicators and ready to run if selected. Success

    • FVtrading • 212 days ago #

      My point is that on the book Carter says that “Once the first gray dot appears after a series of black dots, I go long if the histogram is above zero”. My problem is that If I try to do the backtest on Prorealtime , I see that I should use the graphic condition but I’m not able to translate this input “first gray and Histogram below zero” in a codniton to backtest. Many thanks

  11. ran2019 • 183 days ago #

    Hello Nicolas, I am new for trading, Could you please tell me if TTM squzee works on Tradingview OR MT4, How do I download it, I have basic knowledge in computers, Thank You Nicolas

    • Nicolas • 183 days ago #

      All codes here are made to be used with Prorealtime trading platform, open a free account on http://www.prorealtime.com

  12. Xtian • 159 days ago #

    Bonjour Nicolas, Merci pour votre travail de codage et de partage. J’ai bien télécharger votre indicateur et fais la modification qui produisait une erreur sur la ligne 18 avec:
    dev = mult * std [longueur] (source)
    Cependant votre indicateur ne s’affiche toujours pas dans mes graphes.

  13. Gaby333 • 155 days ago #

    not working the same thing as xtian saying?

  14. fucode • 98 days ago #

    I need to calculate this in excel. Is it posible ? how ?

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