Squeeze Index [LuxAlgo] For ThinkOrSwim

[hazmat8039]

The Squeeze Index aims to measure the action of price being squeezed, and is expressed as a percentage, with higher values suggesting prices are subject to a higher degree of compression.

Settings

• Convergence Factor: Convergence factor of exponential envelopes.
• Length: Period of the indicator.
• Src: Source input of the indicator.

Usage
Prices being squeezed refer to the action of price being compressed within a tightening area. Prices in a tight area logically indicate a period of stationarity, price breaking out of this area will generally indicate the trader whether to buy or sell depending on the breakout direction.

The convergence factor and length settings both play an important role in the returned indicator values. A convergence factor greater than the period value will detect more squeezed prices area, while a period greater than the convergence will return fewer detected squeezed areas.

We recommend using a convergence factor equal to the period setting or a convergence factor twice as high.

The above chart makes use of a convergence factor of 100 and a period of 10.

Due to the calculation method, it is possible to see retracements being interpreted as price squeezing. This effect can be emphasized with higher convergence factor values.

Details
In order to measure the effect of price being squeezed in a tighter area we refer to damping, where the oscillations' amplitude of a system decrease over time. If the envelopes of a damped system can be estimated, then getting the difference between the upper and lower extremity of these envelopes would return a decreasing series of values.

This approach is used here. First the difference between the exponential envelopes of extremities is obtained, the logarithm of this difference if obtained due to the extremities converging exponentially toward their input.

We then use the correlation oscillator to get a scaled measurement.



Im trying to convert this,
https://www.tradingview.com/script/Et6YD2t4-Squeeze-Index-LuxAlgo/

 

[samer800]

Im trying to convert this,
https://www.tradingview.com/script/Et6YD2t4-Squeeze-Index-LuxAlgo/
but I am getting stuck, I know there are other squeeze detectors out there but this one is simple and I can adjust the length and convergence factor with inputs. if someone could help that would be great.

// This work is licensed under a Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) https://creativecommons.org/licenses/by-nc-sa/4.0/
// © LuxAlgo

//@version=5
indicator("Squeeze Index [LuxAlgo]", "Squeeze Index [LuxAlgo]")
//------------------------------------------------------------------------------
//Settings
//-----------------------------------------------------------------------------{
conv = input(50, 'Convergence Factor')

length = input(20)

src = input(close)

//Style
col_0 = input(#ffeb3b, 'Gradient'
, inline = 'inline0'
, group = 'Style')

col_1 = input(#ff5d00, ''
, inline = 'inline0'
, group = 'Style')

col_2 = input(#ff1100, ''
, inline = 'inline0'
, group = 'Style')

//-----------------------------------------------------------------------------}
//Squeeze index
//-----------------------------------------------------------------------------{
var max = 0.
var min = 0.

max := nz(math.max(src, max - (max - src) / conv), src)
min := nz(math.min(src, min + (src - min) / conv), src)
diff = math.log(max - min)

psi = -50 * ta.correlation(diff, bar_index, length) + 50

//-----------------------------------------------------------------------------}
//Plots
//-----------------------------------------------------------------------------{
css1 = color.from_gradient(psi, 0, 80, col_0, col_1)
css2 = color.from_gradient(psi, 80, 100, css1, col_2)

plot_0 = plot(psi, 'PSI', psi > 80 ? na : css2)
plot(psi, 'Dots', psi > 80 ? css2 : na, style = plot.style_cross)

plot_1 = plot(80, display = display.none, editable = false)

fill(plot_0, plot_1, psi < 80 ? na : color.new(#ff1100, 80))

hline(80)

//-----------------------------------------------------------------------------}

find below
CODE:

#// This work is licensed under a Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) https://creativecommons.org/licenses/by-nc-sa/4.0/
#// © LuxAlgo
#indicator("Squeeze Index [LUX]", "SI [LUX]")
# Converted by Sam4Cok@Samer800    - 04/2023
declare lower;

input conv   = 50;# 'Convergence Factor')
input length = 20;
input threshold = 80;
input src = close;

################
def na = Double.NaN;
def bar =  AbsValue(CompoundValue(1, BarNumber(), 1));

script correlationTS {
    input data1 = close;
    input data2 = close;
    input length = 12;
    plot CorrelationTS = Covariance(data1, data2, length) / ( StDev(data1, length) * StDev(data2, length) );
}

#//-----------------------------------------------------------------------------}
#//Squeeze index
#//-----------------------------------------------------------------------------{
def max;
def min;

max = Max(src, if(max[1]==0,src, max[1]) - (if(max[1]==0,src, max[1]) - src) / conv);
min = Min(src, if(min[1]==0,src[1], min[1]) + (src - if(min[1]==0,src[1], min[1])) / conv);

def diff = Log(max - min);

def psi = -50 * correlationTS(diff, bar, length) + 50;

#//-----------------------------------------------------------------------------}
#//Plots
#//-----------------------------------------------------------------------------{
plot psiLine = psi;#if bar <= length then na else psi;
psiLine.SetLineWeight(2);
psiLine.AssignValueColor(CreateColor(255, 255 - psi * 2.55, 0));
plot psiUpper = if psi < threshold or bar <= length then na else psi;
psiUpper.SetDefaultColor(Color.LIGHT_RED);
psiUpper.SetStyle(Curve.POINTS);
psiUpper.SetLineWeight(2);

plot line80 = if isNaN(close) then na else threshold;
line80.SetDefaultColor(Color.GRAY);
line80.SetStyle(Curve.MEDIUM_DASH);

AddCloud(psiUpper,  line80,  Color.DARK_RED);#psi < 80 ? na : color.new(#ff1100, 80))

input lowerThreshold  = 20;
plot psiLower = if psi < lowerThreshold  then psi else na;
psiLower.SetDefaultColor(Color.LIGHT_green);
psiLower.SetStyle(Curve.POINTS);
psiLower.SetLineWeight(2);

plot line20 = if isNaN(close) then na else lowerThreshold;
line20.SetDefaultColor(Color.GRAY);
line20.SetStyle(Curve.MEDIUM_DASH);

AddCloud(psilower,  line20,  Color.DARK_green, color.dark_green);

# End Of Code

 

[thatsben]

View attachment 18425
find below
CODE:

#// This work is licensed under a Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) https://creativecommons.org/licenses/by-nc-sa/4.0/
#// © LuxAlgo
#indicator("Squeeze Index [LUX]", "SI [LUX]")
# Converted by Sam4Cok@Samer800    - 04/2023
declare lower;

input conv   = 50;# 'Convergence Factor')
input length = 20;
input threshold = 80;
input src = close;

################
def na = Double.NaN;
def bar =  AbsValue(CompoundValue(1, BarNumber(), 1));

script correlationTS {
    input data1 = close;
    input data2 = close;
    input length = 12;
    plot CorrelationTS = Covariance(data1, data2, length) / ( StDev(data1, length) * StDev(data2, length) );
}

#//-----------------------------------------------------------------------------}
#//Squeeze index
#//-----------------------------------------------------------------------------{
def max;
def min;

max = Max(src, if(max[1]==0,src, max[1]) - (if(max[1]==0,src, max[1]) - src) / conv);
min = Min(src, if(min[1]==0,src[1], min[1]) + (src - if(min[1]==0,src[1], min[1])) / conv);

def diff = Log(max - min);

def psi = -50 * correlationTS(diff, bar, length) + 50;

#//-----------------------------------------------------------------------------}
#//Plots
#//-----------------------------------------------------------------------------{
plot psiLine = psi;#if bar <= length then na else psi;
psiLine.SetLineWeight(2);
psiLine.AssignValueColor(CreateColor(255, 255 - psi * 2.55, 0));
plot psiUpper = if psi < threshold or bar <= length then na else psi;
psiUpper.SetDefaultColor(Color.LIGHT_RED);
psiUpper.SetStyle(Curve.POINTS);
psiUpper.SetLineWeight(2);

plot line80 = if isNaN(close) then na else threshold;
line80.SetDefaultColor(Color.GRAY);
line80.SetStyle(Curve.MEDIUM_DASH);

AddCloud(psiUpper,  line80,  Color.DARK_RED);#psi < 80 ? na : color.new(#ff1100, 80))

# End Of Code

#samer800 can you add a threshold gray dash at 20, a Light Green cloud and curve.points when line crosses 20 threshold?

 

[MerryDay]

#samer800 can you add a threshold gray dash at 20, a Light Green cloud and curve.points when line crosses 20 threshold?

Here ya go. Add the following code to the bottom of your study:

input lowerThreshold  = 20;
plot psiLower = if psi < lowerThreshold  then psi else na;
psiLower.SetDefaultColor(Color.LIGHT_green);
psiLower.SetStyle(Curve.POINTS);
psiLower.SetLineWeight(2);

plot line20 = if isNaN(close) then na else lowerThreshold;
line20.SetDefaultColor(Color.GRAY);
line20.SetStyle(Curve.MEDIUM_DASH);

AddCloud(psilower,  line20,  Color.DARK_green, color.dark_green);

 

[lexcorp]

I'm getting an error with the additional code at the bottom did I miss something ?

 

[useThinkScript]

I'm getting an error with the additional code at the bottom did I miss something ?

Good Catch!

1. the script snippet has been fixed in the post above, you can re-cut and paste.
2. the script snippet has been added to @samer800 original script, you can just reload the entire indicator
3. the script was added to the shared chart link: http://tos.mx/!gabHbHwQ Click here for --> Easiest way to load shared links If you would like to add it that way.

Thanks for the heads up!