This study tries to highlight LazyBear Squeeze Momentum divergences as they are defined by TradingLatino TradingView user Squeeze momentum green peaks are connected by a line Associated prices to these green peaks are also connected If both lines have a different slope orientation then there is a divergence.
It only shows two last divergence lines and angles.
The original chart screenshot shows some divergence lines on the top or main chart these were drawn manually because you cannot write to two different charts from the same pine script study (Well, not in August 2020 anyways)
It's aimed at BTCUSDT pair and 4h timeframe.
HOW IT WORKS Simple geometric mathematics are used to calculate the two lines degrees Then both degrees are compared to show if both lines agree ( // or \\ ) or if they disagree ( /\ or \/ )
SETTINGS (SQZDiver) Show degrees [False]: Show degrees of each Squeeze Momentum Divergence lines to the x-axis. (SQZDiver) Show desviation labels [True]: Whether to show or not desviation labels for the Squeeze Momentum Divergences. (SQZDiver) Show desviation lines [True]: Whether to show or not desviation lines for the Squeeze Momentum Divergences.
(ADX) Smoothing [14] (ADX) DI Length [14] (ADX) key level [23] (ADX) Print [False]: Whether to show or not scaled ADX line
(SQZMOM) BB Length [20] (SQZMOM) BB MultFactor [2.0] (SQZMOM) KC Length [20] (SQZMOM) KC MultFactor [1.5] (SQZMOM) Use TrueRange (KC) [True] (SQZMOM) Print [True]: Whether to show or not Squeeze Momentum indicator.
WARNING Some securities and timeframes might output degrees too next to zero. The code might need to be tweaked to meet your needs.
USAGE One strategy is to sell when you are in a long entry when you find out that the price slope is upwards ( / ) while the lb smilb slope is downwards: ( \ ) E.g. You will see: / \ on the indicator.
Why? Because it might signal you that the price is going to correct downwards soon.
FEEDBACK 1 Please let me know if there is any other strategy based on the red side of LB Squeeze Momentum so that I might add support for it in the future.
FEEDBACK 2 Calculating degrees in a chart with a different x-axis scale is a nightmare that's why I did not a range settings so that values next to zero are converted into zero and thus showing an horizontal line.
Feedback is welcome on this matter.
EXTRA 1 If you turn off showing the divergence lines and if you turn off showing the divergence labels you almost get what TradingLatino user uses as its default momentum indicator.
EXTRA 2 Optionally this indicator can show you a rescaled ADX (it only works properly on 2020 Bitcoin charts)
[B]ABOUT COLOURS[/B] TradingLatino user has both dark green and light green inverted compared to this LB SQZMOM chart.
CREDITS I have reused and adapted some code from 'Squeeze Momentum Indicator' study which it's from TradingView LazyBear user.
I have reused and adapted some code from 'Directional Movement Index + ADX & Keylevel Support' study which it's from TradingView console user.
Phát hành các Ghi chú
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ADX improvements:
Now the ADX value is properly plotted with the correct scale.
Added different colours for ADX when it goes downwards or upwards
ADX Keylevel (23) line is now shown in silver colour when ADX is below the keylevel. It is shown in white colour when ADX is above the keylevel.
Added optional label for knowing what's the last bar ADX value.
Now you can see the ADX value for every bar on the Data Window.
Phát hành các Ghi chú
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ADX improvements:
Added ADX Scale
Option to enable or disable ADX scale
Please be aware that the drawn ADX Scale is only accurate on the last values of ADX.
te quedo increible este script! solo tengo 2 dudas, ¿la primera es si el tema de la divergencia solo aplica para detectar unicamente correcciones o tambien impulsos? pues noto que solo se traza unicamente en lo verde, y la segunda es ¿si la linea se va trazando en tiempo real cuando detecta la divergencia? gracias. por su maravillo trabajo. un saludo
ruckard
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@leofranjav, Creo que sí que se traza en tiempo real pero no estoy seguro.
Por otro el script sólo muestra las divergencias de lo verde. No de lo rojo que entiendo es con lo que te refieres a impulsos.
Hacer que se mostrasen ambos supongo que era muy complicado.
Copiar y pegar el studio y hacerlo para los rojos parece bastante directo pero, claro, habría que ponerse.
lorenzoscoccia
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beautiful. would be amazing to make it work in all charts.
ruckard
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@lorenzoscoccia, I am tempted to do the same indicator for the top char but I'm afraid of TV considering it a non original study and thus duplicated (so that they delete it).
manthur
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How many bars before the divergence is confirmed and painted to the chart?
ruckard
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@manthur, No bars, maybe one bar. The divergence is painted as soon as it's detected.
fagervan
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why is adx keylevel crooked? how do i put it right
ruckard
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@fagervan, That's because of different scale with the Squeeze Momentum. Having a crooked ADX is the price you have to pay to avoid using one extra indicator.
If you don't mind using an extra indicator just use a traditional ADX indicator in order to paint it.