OPEN-SOURCE SCRIPT
Volatility Squeeze & Momentum
This indicator flags low-volatility "squeeze" phases and pairs them with a momentum histogram, so that volatility expansions can be read together with direction. The squeeze concept was popularized by John Carter (TTM Squeeze); this script is an original open-source implementation of that public idea.
How it works
A squeeze is on when both Bollinger Bands (default 20, 2.0) sit inside the Keltner Channels (default 20, 1.5 x average true range) — a sign that recent volatility is unusually compressed. The zero line shows the state: orange dots while the squeeze is on, gray otherwise. Momentum is a linear-regression estimate of price relative to a midline (average of the Donchian midpoint and the SMA), shown as a four-color histogram: rising/falling shades above and below zero.
Three alert conditions are included: squeeze release, release with positive momentum, and release with negative momentum.
Notes and limitations
A squeeze marks compression, not direction — releases can resolve either way, and momentum at the moment of release is context, not a guarantee. All parameters are configurable; defaults follow common usage.
How it works
A squeeze is on when both Bollinger Bands (default 20, 2.0) sit inside the Keltner Channels (default 20, 1.5 x average true range) — a sign that recent volatility is unusually compressed. The zero line shows the state: orange dots while the squeeze is on, gray otherwise. Momentum is a linear-regression estimate of price relative to a midline (average of the Donchian midpoint and the SMA), shown as a four-color histogram: rising/falling shades above and below zero.
Three alert conditions are included: squeeze release, release with positive momentum, and release with negative momentum.
Notes and limitations
A squeeze marks compression, not direction — releases can resolve either way, and momentum at the moment of release is context, not a guarantee. All parameters are configurable; defaults follow common usage.
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.
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
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.
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.