Recruitment of participants Phoenix Squeeze NT8

Phoenix Squeeze NT8



There have been dozens of squeeze indicators on the market, all inspired by the legendary indicator named "TTM Squeeze". This squeeze momentum indicator for NinjaTrader 8 takes advantage of the characteristics of Bollinger Bands and Keltner Channel in a really smart way.

While Keltner Channel is rather stable, Bollinger Bands is elastic due to the nature of Standard Deviation. Therefore, whenever Bollinger Bands contracts and goes completely inside Keltner Channel, the market is said to be in a squeeze - which is usually a signal of a choppy or uncertain market condition.

Then when Bollinger Bands expands and travels outside Keltner Channel, the market leaves the squeeze and often enters an "explosion" phase, because a period of low volatility often leads to a period of high volatility (trending in either way).

Our version, Phoenix Squeeze, uses a metaphor that the phoenix is locked in a squeeze when the market has low volatility. Then the phoenix will majestically fly (either up or down) when the market explodes with increasing volatility.

The Squeeze plot created by this awesome NinjaTrader squeeze indicator is hard-coded at zero and only displays the information through its color: red or orange for in-squeeze periods, and green or darkgreen for out-of-squeeze periods. As you see, the Squeeze plot identified by our NinjaTrader 8 squeeze momentum indicator is colorized in 4 user-defined colors (instead of only 2 colors as in most versions out there) to show how strong the contraction and expansion is.

The Squeeze plot does not tell the direction of explosion, so here comes the duty of the Momentum plot which is calculated from a complex combination of the Close price, the moving average of Close, the Donchian channel midline, and the smoothing of the final result in the end. A positive momentum indicates a bullish trend, while a negative momentum indicates a bearish trend. Combining the Momentum plot information with what's provided by the Squeeze plot, you can come up with a comprehensive interpretation of the market price action.