Squeeze Break


This indicator is based on a strategy mentioned in John Carter's book, 'Mastering the Trade'

The basic idea behind the strategy is that markets tend to move from periods of Low volatility to High volatility and vice versa.
The strategy aims to capture moves from low to high volatility. For gauging this he uses Two common indicators - Bollinger Bands and Keltner Channels.
He also uses the Momentum indicator to provide a trade bias as some as the Bollinger Bands come back outside the Keltner Channels.

The Squeeze Break indicator combines this into a signal indicator and has the following components :

1. A positive Green histogram means that the Bollinger Bands are outside the Keltner Channels and the market is lightly to be Trending or Volatile. The stronger the Histogram the stronger the directional price move.
2. A negative Red histogram means that the Bollinger Bands are inside the Keltner Channels and the Market is lightly to be Consolidating. The stronger the red Histogram the tighter price action is becoming.
3. Incorporated into the indicator is a Momentum indicator. According to the strategy J. Carter goes Long when the Bollinger Bands break outside the Keltner Bands and the Momentum indicator is above the Zero line. He goes Short when the Momentum indicator is below the Zero line.
4. This indicator tends to be Better with the Larger timeframes.


Parameter :

Bollinger Period
Bollinger Dev
Keltner Period
Keltner Mul
Momentum_Period


And can Change the Other Colors for Lines : Up, Down and Momentum