OPEN-SOURCE SCRIPT
Actualizado Adaptive Volatility Squeeze [UkutaLabs]
█ OVERVIEW
The **Adaptive Volatility Squeeze** is an advanced volatility compression indicator designed to identify when markets are storing energy before a potential breakout.
Periods of low volatility are often followed by rapid expansions in price movement. This indicator detects those compression phases by comparing **Bollinger Band width to Keltner Channel width**, allowing traders to quickly identify when the market is tightening and preparing for a move.
Unlike traditional squeeze indicators, the Adaptive Volatility Squeeze adds several improvements:
• Squeeze Strength Detection – Not all squeezes are equal. The indicator ranks compression from mild to extreme.
• Directional Pressure Momentum – Uses EMA pressure to estimate directional bias.
• Volume Expansion Highlighting – Breakouts with strong participation are emphasized.
• Squeeze Duration Tracking – Longer squeezes often produce larger moves.
Together, these elements help traders recognize when volatility is compressing, which direction pressure is building, and when a breakout is likely to occur.
█ HOW THE INDICATOR WORKS
The indicator displays two primary components:
1. Squeeze Cross – Located along the center line of the panel, these crosses represent volatility compression.
2. Directional Pressure Histogram – Displays bullish or bearish momentum pressure.
█ SQUEEZE CROSS
The crosses indicate when the market is entering a period of volatility compression.
Cross colors represent the strength of the squeeze:
• White– Normal volatility (no squeeze)
• Orange – Mild compression forming
• Red – Strong squeeze developing
• Purple – Extreme compression
The longer a squeeze persists, the more potential energy the market may be storing.
█ DIRECTIONAL PRESSURE HISTOGRAM
The histogram measures directional pressure using a fast and slow EMA comparison.
• Green bars – Bullish directional pressure
• Red bars – Bearish directional pressure
• Bright colors – Indicate increased volume participation
This helps traders determine the likely direction of a breakout once the squeeze releases.
█ HOW TO USE THIS INDICATOR
The indicator works best when traders follow the three-phase squeeze cycle:
1. Compression Phase
Crosses stop appearing as white and begin progressing from orange to red or purple.
During this stage the market is tightening and preparing for expansion. Traders should avoid early entries and instead watch for developing directional pressure.
2. Directional Bias
Observe the histogram while the squeeze is active.
• Rising green momentum suggests bullish pressure.
• Falling red momentum suggests bearish pressure.
This phase helps determine which direction the breakout is more likely to occur.
3. Release Phase
The breakout typically occurs when the squeeze ends and volatility begins expanding.
Many traders enter when:
• The squeeze cross disappear
• Momentum accelerates in the direction of the histogram
█ EXAMPLE LONG SETUP
1. Red or purple squeeze crosses persist for several bars
2. Histogram turns green and begins rising
3. The squeeze releases
This suggests volatility expansion to the upside may be beginning.
█ EXAMPLE SHORT SETUP
1. Red or purple squeeze crosses remain active
2. Histogram turns red and begins falling
3. The squeeze releases
This suggests volatility expansion to the downside may be beginning.
█ ADDITIONAL TRADING INSIGHTS
• Longer squeezes often produce larger breakouts
• Volume-confirmed momentum strengthens signals
• The first move after compression can be very fast
Because volatility expansions can happen quickly, many traders pair this indicator with structure levels, trend filters, or risk management tools.
█ RISK MANAGEMENT
No indicator guarantees future price movement. Traders should always apply proper risk management techniques, such as:
• Using stop losses
• Trading with defined risk
• Confirming signals with additional analysis
█ SUMMARY
The Adaptive Volatility Squeeze helps traders identify moments when the market is transitioning from low volatility to high volatility.
By combining squeeze strength detection, directional pressure analysis, and volume confirmation, the indicator provides a clear framework for recognizing high-potential breakout conditions.
The **Adaptive Volatility Squeeze** is an advanced volatility compression indicator designed to identify when markets are storing energy before a potential breakout.
Periods of low volatility are often followed by rapid expansions in price movement. This indicator detects those compression phases by comparing **Bollinger Band width to Keltner Channel width**, allowing traders to quickly identify when the market is tightening and preparing for a move.
Unlike traditional squeeze indicators, the Adaptive Volatility Squeeze adds several improvements:
• Squeeze Strength Detection – Not all squeezes are equal. The indicator ranks compression from mild to extreme.
• Directional Pressure Momentum – Uses EMA pressure to estimate directional bias.
• Volume Expansion Highlighting – Breakouts with strong participation are emphasized.
• Squeeze Duration Tracking – Longer squeezes often produce larger moves.
Together, these elements help traders recognize when volatility is compressing, which direction pressure is building, and when a breakout is likely to occur.
█ HOW THE INDICATOR WORKS
The indicator displays two primary components:
1. Squeeze Cross – Located along the center line of the panel, these crosses represent volatility compression.
2. Directional Pressure Histogram – Displays bullish or bearish momentum pressure.
█ SQUEEZE CROSS
The crosses indicate when the market is entering a period of volatility compression.
Cross colors represent the strength of the squeeze:
• White– Normal volatility (no squeeze)
• Orange – Mild compression forming
• Red – Strong squeeze developing
• Purple – Extreme compression
The longer a squeeze persists, the more potential energy the market may be storing.
█ DIRECTIONAL PRESSURE HISTOGRAM
The histogram measures directional pressure using a fast and slow EMA comparison.
• Green bars – Bullish directional pressure
• Red bars – Bearish directional pressure
• Bright colors – Indicate increased volume participation
This helps traders determine the likely direction of a breakout once the squeeze releases.
█ HOW TO USE THIS INDICATOR
The indicator works best when traders follow the three-phase squeeze cycle:
1. Compression Phase
Crosses stop appearing as white and begin progressing from orange to red or purple.
During this stage the market is tightening and preparing for expansion. Traders should avoid early entries and instead watch for developing directional pressure.
2. Directional Bias
Observe the histogram while the squeeze is active.
• Rising green momentum suggests bullish pressure.
• Falling red momentum suggests bearish pressure.
This phase helps determine which direction the breakout is more likely to occur.
3. Release Phase
The breakout typically occurs when the squeeze ends and volatility begins expanding.
Many traders enter when:
• The squeeze cross disappear
• Momentum accelerates in the direction of the histogram
█ EXAMPLE LONG SETUP
1. Red or purple squeeze crosses persist for several bars
2. Histogram turns green and begins rising
3. The squeeze releases
This suggests volatility expansion to the upside may be beginning.
█ EXAMPLE SHORT SETUP
1. Red or purple squeeze crosses remain active
2. Histogram turns red and begins falling
3. The squeeze releases
This suggests volatility expansion to the downside may be beginning.
█ ADDITIONAL TRADING INSIGHTS
• Longer squeezes often produce larger breakouts
• Volume-confirmed momentum strengthens signals
• The first move after compression can be very fast
Because volatility expansions can happen quickly, many traders pair this indicator with structure levels, trend filters, or risk management tools.
█ RISK MANAGEMENT
No indicator guarantees future price movement. Traders should always apply proper risk management techniques, such as:
• Using stop losses
• Trading with defined risk
• Confirming signals with additional analysis
█ SUMMARY
The Adaptive Volatility Squeeze helps traders identify moments when the market is transitioning from low volatility to high volatility.
By combining squeeze strength detection, directional pressure analysis, and volume confirmation, the indicator provides a clear framework for recognizing high-potential breakout conditions.
Notas de prensa
Added Pressure Signal MA for improved momentum clarityNotas de prensa
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La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.