Adaptive Squeeze Momentum PRO

This indicator is built on the classic Squeeze Momentum, but fully updated and enhanced for today’s traders. Here’s how it works and what makes it unique:

1️⃣ The core logic: the “Squeeze”

The market compresses when Bollinger Bands (BB) contract inside Keltner Channels (KC).

That’s called “Squeeze ON” → low volatility, the market is coiling energy.

When BB break back outside KC, we get “Squeeze OFF” → volatility expansion, often the start of a strong move.

2️⃣ The momentum histogram

The histogram tracks both direction and strength of momentum.

Bright green → bullish momentum increasing.

Dark green → bullish momentum fading.

Bright red → bearish momentum growing.

Dark red → bearish momentum weakening.

This gives a clear picture of not just where the market is going, but how strong the move is.

3️⃣ Smart filters

To reduce false signals, extra filters are included:

EMA filter: only validate signals in the direction of a chosen EMA (e.g. EMA 50).

Volume filter: optional check that volume is above its moving average → avoids dead squeezes without real participation.

4️⃣ Visual signals

Black dot → squeeze ON (volatility compression).

Gray dot → squeeze OFF (release, watch closely).

Histogram color shifts live to show momentum changes.

5️⃣ Info label (latest candle)

On the last bar, a small label summarizes:

Current state → Squeeze, Release, or Neutral.

BB & KC parameters in use.

Whether EMA filter is ON or OFF.

🎯 How to use it

Watch for squeeze ON (black dot + tight histogram) → market is loading energy.

Wait for the release (gray dot) → volatility expansion is coming.

Confirm with histogram color → green = bullish move, red = bearish move.

Use filters:

EMA filter → trade with trend.

Volume filter → only take signals with strong participation.

⚠️ Disclaimer:
This script is for educational purposes only. It is not financial advice or a guaranteed trading system. Always backtest thoroughly and use proper risk management before applying it in live markets. Trading involves risk, and you are solely responsible for your own decisions.