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How to anticipate an all day squeeze?

petech

Member
Below is the intra day chart of TSLA on the 5 mins. I have the alligator indicator turned on, as well as the bollinger band. The date was April 26, 2021. What are some signs or indicators what would help me see that a stock is stuck in a squeeze. Where virtually any form of trend following strategy would not work. Beyond wanting to learn from this particular day, I'm also wondering in parallel how to spot the afternoon squeeze that is quite common for TSLA.

dO1rlFx.jpg


From this page, https://usethinkscript.com/threads/...ipts-to-detect-periods-of-consolidation.1159/
I've looked at the consolidation barebones script for that particular day, and I'm not sure what to make of it. I've also looked at it for other days following and not sure what to make of it either. On that same page I've also tested the code from post #6 and I wasn't sure what to make of it either, it made the candles tiny and unreadable. On that same thread, post #25, I tested the keltner bandwidth script. Didn't know what to make of it. Also on post #25, I looked at the balance of power script and it does appear to be better at showing momentum over time. Though I could also figure that out by looking the price action or looking at the bollinger band, or look at the bollinger bandwidth. What I am having trouble is that any false breakout during a squeeze generally looks the same as how a successful breakout would also start.

I also looked at this page, https://usethinkscript.com/threads/true-momentum-oscillator-for-thinkorswim.15/
In particular True Momentum Oscillator from post #1. Wasn't sure what to make of it in regards to how to know if the stock is in a squeeze.

From this page
https://usethinkscript.com/threads/eci-gaussian-indicator-for-thinkorswim.1160/
I also looked at the eci gaussian. I wasn't sure what to make of it.

The more successful one I've found so far is from this page
https://usethinkscript.com/threads/...e-experiment-for-thinkorswim.1215/#post-62342
From post #1, Mobius' Momentum Squeeze.
So for 4/26 on TSLA's 5 min chart, it seems to do a reasonable job pointing out dangerous times of sideways movement. It also seems to do a reasonable job on some other days for TSLA.

Is there any other indicator I should look at in addition to help me understand when a stock is in a squeeze and to watch out for false breakouts for intra day scalping?

Thanks in advance.
 
@petech Have you checked out my version of TTM_Squeeze_Clouds...??? If I check, I may have a newer version...
I have not seen it before. I've loaded it and use it to look through several months of 5mins TSLA intra day charts. I like it a lot. It 'seems' like on any given day, once I see the first sign of a squeeze, the odds of there being another big breakout later that day is lower. Which might suggest it isn't worth watching the charts anymore at that point.

I can only assume this indicator does not repaint. I don't see how it could if it is just measuring the difference in volatility at any given time. But I suppose I'll find out when I watch it live during market hours.

I went into the settings to see if I could turn off the clouds and just leave on the vertical lines. It seems like that is not possible. So what I could do is drag it to the lower studies, so it will be off my chart.

On that page you linked, there is code above the 3 images and there is code after the 3 images. I installed them both and loaded them both. They both look identical. So I will assume they are duplicates. Let me know if they are not. I don't know what the difference is.

I quite like your indicator, thank you for showing it to me.

BTW I've also noticed that it seems like your indicator/script while visually very different than "Mobius' Momentum Squeeze", the output seems near identical. That script seems to flag all the same candles that your script does. Though I REALLY like the execution of your vertical lines saying squeeze on and squeeze off.
 
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