MQL4 - automated forex trading   /  

Code Base

Read Financial Magazines in MetaTrader 4 and MetaTrader 5!

Code Base  Indicators  Squeeze Break Indicator To post a new code, please log in or register

Download MetaTrader 5 and visit MQL5.community Code Base
and Trade on the Go!
and Trade on the Go!
Couldn't find the right code? Order it in the Jobs section

This library is for
MetaTrader 4
Download MT 4 - 455 Kb

and Trade on the Go!

and Trade on the Go!

Name:
Squeeze Break Indicator
Author: Catan (2009.04.17 11:17)
Downloaded: 12725
Download:
 Squeeze_Break.mq4 (10.1 Kb) View

This indicator is based on a strategy mentioned in John Carter's book, Mastering the Trade. The basic idea behind the strategy is that markets tend to move from periods of low volatility to high volatility and visa versa. The strategy aims to capture moves from low to high volatility.

For gauging this he uses two common indicators - Bollinger Bands and Keltner Channels (ok, not so common!). He also uses the Momentum indicator to provide a trade bias as some as the Bollinger Bands come back outside the Keltner Channels. The Squeeze_Break indicator combines this into a signal indicator and has the following components:

  1. A positive green histogram means that the Bollinger Bands are outside the Keltner Channels and the market is lightly to be trending or volatile.The stronger the histogram the stronger the directional price move.
  2. A negative red histogram means that the Bollinger Bands are inside the Keltner Channels and the market is lightly to be consolidating. The stronger the red histogram the tighter price action is becoming.
  3. Incorporated into the indicator is a Momentum indicator. According to the strategy J. Carter goes long when the Bollinger Bands break outside the Keltner Bands and the Momentum indicator is above the zero line. He goes short when the Momentum indicator is below the zero line.
  4. I've also added other indicator info in the top left hand corner to give a broader idea of current market conditions.
  5. The indicator provides audio alerts when a potential breakout is occurring. This indicator tends to be better with the larger timeframes. Personally I don't trade purely on an alert signal alone. It's just a handy tool for warning me of changes in price action and potential breakouts.

8 comments  To post a new comment, please log in or register

ya ya Fine no but supper fine combination i like it much i use this indicator.


Author: Catan

15.03.2010 14:37 sureshkansara

Hello Everyone:

Instead of using Momentum to determine buy/sell signals what about using Williams %R? Just a suggestion.

cornerstone-43

04.09.2009 05:47 cornerstone

Hi

Could someone tell how to change the alert to signal when the indicator goes red? As opposed to when it goes back to green.

dave

16.06.2009 10:58 daveg

This is great work!Thanks for the indicator Catan!!

17.05.2009 15:19 vladv
donmajor wrote:

This is a great work. Thank you very much.

Thanks for the encouraging words donmajor ! Much appreciated

Regards,

Des

21.04.2009 15:57 Catan
Meta1 wrote:

Hi,

there are little sign for the break out in the chart: red and blue.

red for sell and blue for buy, that's right?

Best regards

J_l

Hi Meta1,

That's the idea anyway. A red arrow indicates that the Momentum indicator is below the zero line and a blue arrow indicates that it is above the zero line. According to the strategy rules one should go short on a red arrow and long on a blue arrow. Be aware of resistance levels close to blue arrows and support levels close to red arrows. If they are too close, which can happen, I wait for price to penetrate those levels first.

Regards,

Des

21.04.2009 15:55 Catan

Hi,

there are little sign for the break out in the chart: red and blue.

red for sell and blue for buy, that's right?

Best regards

J_l

20.04.2009 16:46 Meta1

This is a great work. Thank you very much.

20.04.2009 03:52 donmajor