Custom EMA/ATR/Keltner/Bollinger with Squeeze Setup
21-EMA and ATR-Based Analysis 21-EMA (Exponential Moving Average):
Acts as a dynamic support/resistance level. The price's relationship with the 21-EMA is used to detect trends and potential reversals. ATR (Average True Range):
Measures volatility. Used to define price thresholds for buy/sell conditions (e.g., price not more than 1 ATR above 21-EMA for a buy signal). 2. Bollinger Bands and Keltner Channels for Squeeze Setup Bollinger Bands (BB):
Calculated using a 20-period simple moving average and standard deviations. Represents high and low volatility zones. Keltner Channels (KC):
Based on a 20-period EMA and ATR. Provides narrower channels for price action compared to Bollinger Bands. Squeeze Condition:
Occurs when Bollinger Bands fall inside Keltner Channels, signaling low volatility. These periods often precede significant price movements (breakouts). 3. Momentum Indicator (MACD Histogram) MACD Histogram: Measures momentum during a squeeze. Positive histogram values suggest bullish momentum, while negative values suggest bearish momentum. Used to predict breakout direction from a squeeze. 4. RSI (Relative Strength Index) for Overbought/Oversold Conditions Buy Signal: RSI below 50 indicates a potential oversold condition, supporting a buy signal. Sell Signal: RSI above 80 indicates overbought conditions, supporting a sell signal. 5. Buy/Sell Signal Conditions Buy Signal:
Price is not more than 1 ATR above the 21-EMA. RSI is below 50 (oversold). Price touches the 21-EMA within a small tolerance. Squeeze condition is active. Sell Signal:
Price is 3 ATR above the 21-EMA. RSI is above 80 (overbought). Additional Signals:
Buy: Price is 2 standard deviations below the 21-EMA. Sell: Price is 2 standard deviations above the 21-EMA. 6. Visual Enhancements
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