Multi-timeframe Squeeze Mom + ADX and DIs

4 Sep 2022

Multi-timeframe Squeeze and ADX

This indicator is designed to be able to get used in combination with others that can lead to a potential help for trading.

The indicator uses colors such us light green, dark green, light red and dark red. Light green and light red to indicate the second half and strongest movement of an upwards and downwards movement, respectively. The same for the first half of an upwards or downwards movement, dark red for the possible start of the upwards movement and dark green ad possible start of the downwards movement.

The indicator is multi-timeframe because the trader can configure within the menu a background timeframe, which plots a squeeze momentum for a different timeframe than the one selected for the main graph. It plots the background timeframe with an area style, while the main squeeze is plotted with a column style. This helps the traders to analyze whether entering a position countering a higher timeframe upwards or downwards squeeze momentum.

It also shows the divergences that occur between the price and the squeeze momentum that can add strength to a potential movement upwards or downwards.

The ADX, DI+ and DI- lines are also added to determine the potential strength of the movement in the monitor (squeeze momentum). If the DI+ is over the DI-, then the strength is likely higher upwards and the opposite for the downwards strength.

Fundamentals

• Squeeze momentum: It shows the periods when volatility increases or decreases, in other words, when the market goes from the trend into flat movement and vice versa.
  
• ADX (Average Directional Index): The ADX helps the indicator to estimate the strength of the movement, always considering the DI+ and DI- to not go against the trend strength.
  
• Positive (DI+) and Negative DI (DI-): Both DI+ and DI- measure up and down price movement, in some cases crossovers of these lines can be used as trade signals.
  
• Divergences: Divergence occur when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator (squeeze momentum). Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
  

Panel

This panel allows the trader to have a summary of the values of the direction and strength of the movement. It has the following characteristics:

• It is placed on the right middle side of the chart indicator by the default.
  
• Its colors changes according to the indicator’s values.
  
• The summary box shows the projection for the main squeeze plot and also for the background squeeze plot. If only one is needed, it can be changed on the menu of the indicator.
  

Summary

From all previously mentioned, it can be stated that the indicator allows users to:

• Detect the direction of trends
  
• Detect price and squeeze divergences
  
• Get a table summarizing important values of the indicator to determine the strength of a trend.
  

6 Sep 2022

Catatan Rilis

Better position and mobile support

• Traders now can change the summary box to the left, middle or right
  
• Traders now can adjust the summary box size to better fit different screen sizes