Mobius’ Momentum Squeeze for ThinkorSwim

J007RMC

J007RMC

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I came across this Mobius momentum squeeze today the first time ive seen it.


Code:
# Momentum Squeeze
# Mobius
# Added Squeeze Label with directional color
# Label is green when momentum is ascending, red when descending
declare lower;
input length = 20; #hint length: Length for average calculation
input price = close;
input SDmult = 2.0;
input ATRmult = 1.5;
   def K = (Highest(High, length) + Lowest(low, length)) /
2 + ExpAverage(close, length);
plot Momo = Inertia(price - K / 2, length);
Momo.setPaintingStrategy(PaintingStrategy.HISTOGRAM);
Momo.setLineWeight(3);
Momo.assignValueColor(if Momo > Momo[1] and Momo > 0
then Color.Cyan
else if Momo > 0 and Momo < Momo[1]
then Color.Blue
else if Momo < 0 and Momo < Momo[1]
then Color.Red
else Color.Yellow);
def SD = StDev(close, length);
def Avg = Average(close, length);
def ATR = Average(TrueRange(high, close, low), length);
def SDup = Avg + (SdMult * Sd);
def ATRup = Avg + (AtrMult * ATR);
plot Squeeze = if SDup < ATRup
then 0
else Double.NaN;
Squeeze.SetPaintingStrategy(PaintingStrategy.Points);
Squeeze.SetLineWeight(3);
Squeeze.SetDefaultColor(Color.Red);
plot zero = if IsNaN(close) or !IsNaN(Squeeze) then Double.NaN else 0;
zero.SetPaintingStrategy(PaintingStrategy.Points);
zero.SetLineWeight(3);
zero.SetDefaultColor(Color.Green);
AddLabel(!isNaN(Squeeze), "Squeeze", if isAscending(Momo)
then Color.Green
else Color.Red);
# End Code - Momentum Squeeze
 
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tomsk

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I saw that in TSL several years ago According to Mobius it precisely replicates the TOS TTM_Squeeze. At default settings the output is the same as the TTM_Squeeze.
 
J007RMC

J007RMC

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Ahh thanks is there a way to improve on default setting maybe just curious..
 
J007RMC

J007RMC

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Wow absolutely identical but the label may in some way be helpful.
 
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tomsk

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Wow absolutely identical but the label may in some way be helpful.
That was the reason why Mobius replicated it, and you're right, it allows coders to add ore info to suit the needs.
The standard TOS TTM Squeeze has the source code locked so that Mobius study was really helpful
 
J007RMC

J007RMC

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Thanks tomsk very interesting.
 
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tomsk

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Thanks tomsk very interesting.
There is a commercial study called TTM Squeeze Pro that is being claimed to generate earlier signals than the regular TTM Squeeze.
As best as I can understand it they do some computation in the KeltnerChannel values by using 3 different "factors" - high, low and mid and some some relationship tests with the BollingerBand. The details escape me but that's how I understood it
 
J007RMC

J007RMC

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Took this off a website same updated indicator behind John Carter's famous $1.4 Million TSLA Trade
 
J007RMC

J007RMC

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Squeeze Momentum Indicator [LazyBear]

This is a derivative of John Carter's "TTM Squeeze" volatility indicator, as discussed in his book "Mastering the Trade" (chapter 11).

Black crosses on the midline show that the market just entered a squeeze (Bollinger Bands are with in Keltner Channel). This signifies low volatility, market preparing itself for an explosive move (up or down). Gray crosses signify "Squeeze release".

Mr.Carter suggests waiting till the first gray after a black cross, and taking a position in the direction of the momentum (for ex., if momentum value is above zero, go long). Exit the position when the momentum changes (increase or decrease --- signified by a color change). My (limited) experience with this shows, an additional indicator like ADX / WaveTrend, is needed to not miss good entry points. Also, Mr.Carter uses simple momentum indicator , while I have used a different method (linreg based) to plot the histogram.
More info:
- Book: Mastering The Trade by John F Carter

Code:
//
// @author LazyBear
// List of all my indicators: https://www.tradingview.com/v/4IneGo8h/
//
study(shorttitle = "SQZMOM_LB", title="Squeeze Momentum Indicator [LazyBear]", overlay=false)
length = input(20, title="BB Length")
mult = input(2.0,title="BB MultFactor")
lengthKC=input(20, title="KC Length")
multKC = input(1.5, title="KC MultFactor")
useTrueRange = input(true, title="Use TrueRange (KC)", type=bool)
// Calculate BB
source = close
basis = sma(source, length)
dev = multKC * stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev
// Calculate KC
ma = sma(source, lengthKC)
range = useTrueRange ? tr : (high - low)
rangema = sma(range, lengthKC)
upperKC = ma + rangema * multKC
lowerKC = ma - rangema * multKC
sqzOn  = (lowerBB > lowerKC) and (upperBB < upperKC)
sqzOff = (lowerBB < lowerKC) and (upperBB > upperKC)
noSqz  = (sqzOn == false) and (sqzOff == false)
val = linreg(source  -  avg(avg(highest(high, lengthKC), lowest(low, lengthKC)),sma(close,lengthKC)),
            lengthKC,0)
bcolor = iff( val > 0,
iff( val > nz(val[1]), lime, green),
iff( val < nz(val[1]), red, maroon))
scolor = noSqz ? blue : sqzOn ? black : gray
plot(val, color=bcolor, style=histogram, linewidth=4)
plot(0, color=scolor, style=cross, linewidth=2)
 
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Kimberly

New member
There is a commercial study called TTM Squeeze Pro that is being claimed to generate earlier signals than the regular TTM Squeeze.
As best as I can understand it they do some computation in the KeltnerChannel values by using 3 different "factors" - high, low and mid and some some relationship tests with the BollingerBand. The details escape me but that's how I understood it
Found this comment regarding what is different with the TTM Squeeze Pro version:


"The squeeze pro from John Carter uses 3 colors to identify the 3 different compression levels, black for 2xBB<2xKC, red for 2xBB<1.5xKC and yellow for 2xBB<1xKC (BB->bollinger bands, KC->keltner channles), I'm using orange, red and yellow since I like my charts background in black and for me those colors do the trick."
 

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