OPEN-SOURCE SCRIPT

MACD Dynamic Squeeze Pro [ZynAlgo]

1. Technical Overview
ZynAlgo MACD Dynamic Squeeze Pro [ZynAlgo] is a momentum-context indicator built from the traditional MACD concept. Instead of trying to pick tops and bottoms against the trend, it focuses on trend-following shakeouts, energy compression, and breakout confirmation after a squeeze phase.

2. Chart Reading & UI Guide
ZynAlgo Ribbon

The area between the MACD line and Signal line is filled with Green/Purple ribbon colors.
The ribbon helps traders quickly see which side currently has momentum control.
Use the ribbon as context for your own trading approach, not as a standalone entry trigger.

4-State Histogram

Neon Green highlights bullish acceleration.
Neon Purple highlights bearish acceleration.
Faded colors warn that momentum is losing strength or price may be stagnating.

Diamond Marker on Main Chart

The breakout context marker is plotted directly on the main price chart.
This reduces the need to constantly switch attention between the oscillator pane and price candles.
Treat the marker as a context alert that should be confirmed with your own entry method, risk plan, and market structure.

3. Zyn Explosion Logic
The Green/Purple diamond markers appear only when the indicator detects several conditions together:

Trend Filter: The MACD and Signal lines must both be above the Zero line for bullish trend context, or both below the Zero line for bearish trend context.
Squeeze Phase: The histogram compresses, showing that the market is consolidating or shaking out traders.
Explosion Phase: After the squeeze, MACD crosses the Signal line with enough timing alignment to suggest momentum expansion.

This is a context/analysis tool, not a signal generator. The marker identifies a possible momentum continuation area, but it does not execute trades or guarantee direction.

4. Settings Explanation
Momentum Average Length

Controls the period used to calculate the average volatility of the histogram.
This average becomes the baseline for detecting whether current momentum is compressed.

Squeeze Compression Ratio

Controls how tightly the histogram must compress before the market is considered to be in a squeeze phase.
For example, 0.5 means the current histogram column must compress to less than 50% of the average.
Lower values reduce marker frequency and make the squeeze requirement stricter.

Squeeze Valid Lookback

Defines how many bars after the squeeze phase the MACD cross can still qualify.
This helps reject late or off-beat crossover events.

5. Recommended Presets
Gold Breakout - XAUUSD 5m/15m

Squeeze Average Length: 20
Squeeze Compression Ratio: 0.4
Valid Lookback: 3
Useful when gold creates short-term shakeouts before starting a stronger trend move.

Crypto Trend Following - BTC/ETH 15m/1H

Squeeze Average Length: 30
Squeeze Compression Ratio: 0.5
Valid Lookback: 5
Useful when crypto spends longer periods in sideways consolidation before momentum expansion.

6. Best Practices & Limitations

Use this tool as momentum and squeeze context for your own framework.
Confirm any trade idea with price structure, session context, volatility, and risk planning.
A diamond marker is not an automatic buy or sell instruction.
This tool does not predict price movement.
You alone are responsible for your trading decisions.
No tool eliminates risk or guarantees results.

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

ZynAlgo

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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Open-source script

ZynAlgo

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