Script based in:
original John Carter's ideas (SQUEEZE & SQUEEZE PRO) at simplertrading dot com
LazyBear's script (Squeeze ) here at tradingview dot com
USE IT IN CONJUNCTION WITH THE SQUEEZE PRO ARROWS INDICATOR
This system is based in the reversion to the mean: contraction leads to expansion and the other way on
The dot signal is a warning of compression, more often than not this leads to a expansion of and a move in the action price usually bigger than the expected move
Be aware of the trend direction, use the momentum histogram to see the slope direction
There are 3 levels of compression:
Level 1: ORANGE, the lesser compresion level
Level 2: RED, the normal level marked by the original squeeze indicator
Level 3: YELLOW, the max compression level
The more the compression the bigger the after move
The GREEN dots signal the expansion out of the squeeze ranges
Please check the John Carter's book (Mastering the Trade) and attend his webinars for more insight about the squeeze & squeeze pro systems
I'm starting at trading and learning every day, I attended one of his webinars about the Squeeze Pro, and with help of the LazyBear's Squeeze code up the Squeeze PRO.
Please be aware, I'm not an expert trader, only a developer with an idea: learn to pull out money from the market in a consistent way.
This is a Beta version, please feel free to comment and give feedback, anything you consider iteresting, the more you elaborate the better :D
Thanks you all!!!
The squeeze pro from John Carter uses 3 colors to identify the 3 different compression levels, black for 2xBB<2xKC, red for 2xBB<1.5xKC and yellow for 2xBB<1xKC (BB->bollinger bands, KC->keltner channles), I'm using orange, red and yellow since I like my charts background in black and for me those colors do the trick.
Anyone can modify the colors of any indicator from the settings/style page :D
Can you elaborate a little more from your last sentence? If it's only a colour thing I think changing the orange to black will do the trick. If you think it will be useful I could code a checkbox to set the original indicator color automatically.
Thanks for your comment and please tell me anything you want, changes/improvements you may want... I'm glad if this helps to anyone :D