For some reason I cannot edit previous posts, just reposting with better formatting and a minor change in Conditions 2 and 3.
First we need to build an indicator based on existing PRT indicators (those are indicators taken from existing PRT 10.3 indicators list and not the ones used in TTM Squeeze oscillator).
Indicator 1 – Bollinger Up line (20,2)
Indicator 2 – Bollinger Down line (20,2)
Indicator 3 – Keltner Channel Up line (20)
Indicator 4 – Keltner Channel Down line (20)
Indicator 5 – TTM Squeeze oscillator (the red/green dots specifically).
(see cross over/under in “1-2.png” in earlier post).
Rules
Early Entry Signal
Condition 1 – Indicator 5 dot is Green
Condition 2 – Indicator 1 crosses under Indicator 3 or Indicator 1 is lesser than Indicator3.
Condition 3 – Indicator 2 crosses under Indicator 4 or Indicator 3 is lesser than Indicator4.
See screenshot showing the crossovers/under ref “1-2.png”.
Outcome – When Condition 1 and Condition 2 and Condition 3 = green candlestick.
Candlesticks remain green as long as above condition exists.
Candlesticks revert to default colors any time above conditions do not exist.
This is the only way this indicator is activated. This indicator is only active till the 1st candlestick color change from “light blue” or “red” following the green candlestick to any other color.
This indicator can only produce Exit signals listed below only if the Early Entry Signal was activated and candlestick color remains unchanged.
More on that below.
Early Exit Signal for any time candlestick closes above the Up line of Indicator 1.
Condition 1 – Candlestick closes above Indicator 1.
This is a prerequisite and signal listed in condition 2 cannot occur if condition 1 was not met. Please note that Condition 2 will happen any number of candles after Condition 1 was met.
Condition 2 – Candlestick closes below Indicator 1.
This means that all candles after Condition 1 is met will be “light blue” till shift in momentum. We are looking for early indication that momentum is about to shift. So long as the candles remain “light blue” and any time any light blue candle closes below Indicator 1 then that candle is to turn to “dark blue”.
However, if the momentum shifts and produces a “dark blue” candle before any candle could close below Indicator 1 then this indicator needs to disengage. The indicator will be only active till the 1st “dark blue” candle after condition 1 was met.
Outcome – When Condition 2 = dark blue candlestick color.
Indicator disengages till the next set up.
Early Exit Signal for any time candlestick closes below the Down line of Indicator 2
Condition 1 – Candlestick closes below Indicator 2.
This is a prerequisite and signal listed in condition 2 cannot occur if condition 1 was not met. Please note that Condition 2 will happen any number of candles after Condition 1 was met.
Condition 2 – Candlestick Closes above Indicator 2.
This means that all candles after Condition 2 is met will be “red” till shift in momentum. We are looking for early indication that momentum is about to shift. So long as the candles remain “red” and any time any red candle closes above Indicator 2 then that candle is to turn to “yellow”.
However, if the momentum shifts and produces a “yellow” candle before any candle could close above Indicator 2 then this indicator needs to disengage. The indicator will be only active till the 1st “yellow” candle after condition 1 was met.
Outcome – When Condition 2 = yellow candlestick color.
Indicator disengages till the next set up.
Integration with TTM Squeeze oscillator
We want to integrate above indicator with the existing TTM Squeeze oscillator. Whenever the signal of (green, dark blue, yellow) is produced then it will override TTM Squeeze oscillator candlestick color for that 1 candlestick for Early Exits and any number of Green candlesticks whenever conditions allow for it. This is to be applied only to the candlestick and not to the momentum bar.
