Squeeze Pro Momentum BAR color - KLT

Description:

The Squeeze Pro Momentum indicator is a powerful tool designed to detect volatility compression ("squeeze" zones) and visualize momentum shifts using a refined color-based system. This script blends the well-known concepts of Bollinger Bands and Keltner Channels with an optimized momentum engine that uses dynamic color gradients to reflect trend strength, direction, and volatility.

It’s built for traders who want early warning of potential breakouts and clearer insight into underlying market momentum.

🔍 How It Works:
📉 Squeeze Detection:
This indicator identifies "squeeze" conditions by comparing Bollinger Bands and Keltner Channels:

When Bollinger Bands are inside Keltner Channels → Squeeze is ON

When Bollinger Bands expand outside Keltner Channels → Squeeze is OFF

You’ll see squeeze zones classified as:

Wide

Normal

Narrow

Each represents varying levels of compression and breakout potential.

⚡ Momentum Engine:
Momentum is calculated using linear regression of the price's deviation from a dynamic average of highs, lows, and closes. This gives a more accurate representation of directional pressure in the market.

🧠 Smart Candle Coloring (Optimized):
The momentum color logic is inspired by machine learning principles (no hardcoded thresholds):

EMA smoothing and rate of change (ROC) are used to detect momentum acceleration.

ATR-based filters help remove noise and false signals.

Colors are dynamically assigned based on both direction and trend strength.


🧪 How to Use It:
Look for Squeeze Conditions — especially narrow squeezes, which tend to precede high-momentum breakouts.

Confirm with Momentum Color — strong colors often indicate trend continuation; fading colors may signal exhaustion.

Combine with Price Action — use this tool with support/resistance or patterns for higher probability setups.

Recommended For:

Trend Traders

Breakout Traders

Volatility Strategy Users

Anyone who wants visual clarity on trend strength

📌 Tip: This indicator works great when layered with volume and price action patterns. It is fully non-repainting and supports overlay on price charts.