DarkPool's Squeeze Momentum @author LazyBear

DarkPool's Squeeze Momentum Pro is a comprehensive overhaul of the classic volatility indicator, designed for the modern trader who requires deeper market insight. While staying true to the core logic of the original TTM Squeeze, this version introduces advanced features like automatic divergence detection, dynamic moving average selection, and main-chart integration to help you time entries and exits with precision.

Credit: This script is built upon the foundational "Squeeze Momentum Indicator" originally developed by LazyBear. This version expands on that legacy with enhanced visualization, alert systems, and divergence logic.

Key Features

1. Advanced Divergence Detection

The indicator automatically scans for Regular Bullish and Regular Bearish divergences between price action and momentum.

Bullish Divergence (Green "BULL" Label): Occurs when Price makes a Lower Low, but Momentum makes a Higher Low. This often precedes a bullish reversal.

Bearish Divergence (Red "BEAR" Label): Occurs when Price makes a Higher High, but Momentum makes a Lower High. This often precedes a bearish reversal.

2. Multi-Mode Squeeze Detection

The central dots on the zero line tell you the state of market volatility:

Red Dot (Squeeze ON): Volatility is compressed. The Bollinger Bands are inside the Keltner Channels. The market is "coiling" and preparing for an explosive move. Do not trade yet—wait for the fire.

Grey Dot (Squeeze OFF): The squeeze has "fired." Volatility is expanding, and price is moving.

Blue Dot (Wide Bands): Volatility is extremely high. The bands are exceptionally wide, often indicating the end of a trend or a period of high risk.

3. "Ghost" Histogram & Visual Depth

The momentum histogram features a "Ghost" fill (transparent background) to help visualize the volume of momentum without cluttering the screen.

Bright Green: Strong Bullish Momentum (Rising).

Dark Green: Weakening Bullish Momentum (Fading).

Bright Red: Strong Bearish Momentum (Falling).

Dark Red: Weakening Bearish Momentum (Recovering).

4. Dynamic Candle Coloring

Enabled by default, this feature colors the candles on your main chart to match the momentum histogram. This allows you to instantly gauge the trend strength without looking down at the oscillator pane.

5. Adaptive Calculation Engines

Unlike standard versions fixed to SMA, you can now select the moving average algorithm that drives the Bollinger Bands and Keltner Channels:

SMA: Standard, stable signals.

EMA: More reactive to recent price action.

WMA/RMA: Weighted options for specific strategies.

🛠 How to Operate

The "Squeeze & Fire" Strategy

Identify the Squeeze: Look for a series of Red Dots on the zero line. This indicates the market is resting and building energy.

The Trigger: Wait for the dot to turn Gray AND for the histogram to expand clearly in one direction.

Long Signal: Squeeze fires (Red -> Gray) + Histogram turns Green.

Short Signal: Squeeze fires (Red -> Gray) + Histogram turns Red.

The "Divergence Reversal" Strategy

Watch for "BULL" or "BEAR" labels appearing near the peaks or valleys of the histogram.

Confirmation: A divergence is a warning. Wait for the histogram color to change (e.g., from Bright Red to Dark Red) before entering a reversal trade.

⚙️ Settings Guide

Basis MA Type: Choose between SMA, EMA, WMA, or RMA to tune the sensitivity of the squeeze.

BB/KC Settings: Fully customizable Length and Multipliers to adapt to different assets (Crypto, Forex, or Stocks).

Pivot Lookback: Controls how strict the divergence detection is. Higher numbers = fewer, more significant signals.

Colour Main Chart Candles: Toggle this OFF if you prefer your standard candle colours.

Disclaimer

Trading involves a high level of risk and is not suitable for all investors. This indicator is a tool for technical analysis and does not constitute financial advice. Past performance is not indicative of future results. Always use proper risk management and do not trade based solely on a single indicator.