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How does RSqueeze work?
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How does RSqueeze work?

  #51 (permalink)
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john2000 View Post
@Fat Tails

Thanks for this Squeeze indicator. The Squeeze Dots work great. I'm trying to understand how to read the momentum histogram. Is seems to me it sometimes goes against the price action. This seems to happen more with downtrends as oppose to uptrends.

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@john2000: The indicator does not have a momentum histogram. The histogram just depicts the amount that the Bollinger Band has moved into the Keltner Channels.

You need to use a second indicator to determine whether the squeeze - which stands for low directional volatility - will resolve to the upside or the downside. People mostly use momentum indicators, but I would not rely on a momentum indicator alone. A squeeze means indecision, and similar to an inside bar it can resolve to either direction.


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Last edited by Fat Tails; February 24th, 2013 at 09:16 AM.
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  #52 (permalink)
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Fat Tails View Post
@john2000: The indicator does not have a momentum histogram. The histogram just depicts the amount that the Bollinger Band has moved into the Keltner Channels.

You need to use a second indicator to determine whether the squeeze - which stands for low directional volatility - will resolve to the upside or the downside. People mostly use momentum indicators, but I would not rely on a momentum indicator alone. A squeeze means indecision, and similar to an inside bar it can resolve to either direction.


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I see, Thanks Fat Tails, for the clarification.

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  #53 (permalink)
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Is it possible for someone to write a bool for the rsqueeze?


I am a bloodhound customer. I am trying to program a true or false scenario. when the indicator dots turn from blue I would like a true statement and when it turns red I would like a false statement. Can anyone help me?

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  #54 (permalink)
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Fat Tails View Post
@john2000: The indicator does not have a momentum histogram. The histogram just depicts the amount that the Bollinger Band has moved into the Keltner Channels.

You need to use a second indicator to determine whether the squeeze - which stands for low directional volatility - will resolve to the upside or the downside. People mostly use momentum indicators, but I would not rely on a momentum indicator alone. A squeeze means indecision, and similar to an inside bar it can resolve to either direction.


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@Fat Tails:

Appreciate your efforts in explaining and developing various aspects of this indicator.

Can you show me some screen shots of Ninja Market analyser parameter window showing the settings?

Thanks in Advance.

Regards,

Raj1

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  #55 (permalink)
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Raj1 View Post
@Fat Tails:

Appreciate your efforts in explaining and developing various aspects of this indicator.

Can you show me some screen shots of Ninja Market analyser parameter window showing the settings?

Thanks in Advance.

Regards,

Raj1

@Raj1: If you wish to use the indicator with the market analyzer, you will need to check the value of the plot against zero. If the plot value is smaller than zero, this is equivalent to the squeeze. You can then define cell conditions (such as colors and text) and alert conditions (for alert window or acoustic alert).

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  #56 (permalink)
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Fat Tails View Post
@gcaldridge: The RSqueeze indicators does a few things and is not easy to understand. First of all it has three different settings. You can set it to BBSqueeze, PBFSqueeze and Countertrend.

BBSqueeze

This is the classical Bollinger Bands Squeeze. The squeeze is on when the Bollinger Bands are inside the Keltner Bands. The Bollinger/Keltner thing is more of a visualization. The logic behind is a comparison of standard deviation and average true range.

- The standard deviation measures directional volatility on the base of the variance, which is the squared distance between the last value of a N-period moving average and the preceding N closes.
- The average true range basically measures intra-bar volatility.

If the standard deviation (directional volatility) is smaller than the average true range (non-directional volatility), then you are in a squeeze, as price did not move a lot over the last N bars, all data points are still close to the current value of the moving average.

The squeeze is shown as dots.

Then there is a histogram. This is a bit of voodoo. The indicator calculates an average of the midline of a Donchian Channel and an EMA, then substracts it from the last value of price and applies a linear regression calculation to the resulting DataSeries. The result is something similar as a raw MACD, smoother but with more lag. Honestly, I do not understand what it is good for - which of course does not mean that the author of the indicator had some serious ideas how to use it.


PFSqueeze

This is a nice oscillator based on Gaussian Filters. The oscillator is based on the concept of the MACD. It uses Gaussian Filters instead of the EMAs to calculate the difference between two of them. Remember that the raw MACD is a difference between two EMAs. Here the raw histogram is calculated as the arithmetic average of 4 such differences, each of the differences being calculated from two Gaussian filters. The Guassian filters used have different periods, so the resulting oscillator is a bit of a multiperiod MACD modification.

The squeeze dots just indicate the slope of a Gaussian average, so it has nothing to do with a squeeze at all. Don't know why the author called it squeeze, there is no squeeze.


CounterTrend

Another oscillator, no squeeze. It is a variation of the oscillator, also calculated from Gaussian Filters with a CCI filter added, probably for selecting the colors.


Conclusion

If you just want to have an indication of a Bollinger Band Squeeze, then you do not need this indicator. Only 5% of the code is relevant to calculate the squeeze. But it includes some nice ideas, how to build an MACD type oscillator from Gaussian filters. Whether this can be used for trading is a different question.

@ FatTail
I've downloaded RSqueeze indicator yesterday and experimenting with it.
I do not see PBF Squeeze signals viz., Buy & sell color settings of zero line ( dark green & dark red) as set in the parameter panel.
But I see only BB Squeeze signals viz., red and blue color dots on zero line.
Am I missing to see anything.
Appreciate your advise.
Regards,
Raj1

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  #57 (permalink)
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Raj1 View Post
@ FatTail
I've downloaded RSqueeze indicator yesterday and experimenting with it.
I do not see PBF Squeeze signals viz., Buy & sell color settings of zero line ( dark green & dark red) as set in the parameter panel.
But I see only BB Squeeze signals viz., red and blue color dots on zero line.
Am I missing to see anything.
Appreciate your advise.
Regards,
Raj1

The PBF squeeze option is chosen by clicking here:
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  #58 (permalink)
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Raj1 View Post
@ FatTail
I've downloaded RSqueeze indicator yesterday and experimenting with it.
I do not see PBF Squeeze signals viz., Buy & sell color settings of zero line ( dark green & dark red) as set in the parameter panel.
But I see only BB Squeeze signals viz., red and blue color dots on zero line.
Am I missing to see anything.
Appreciate your advise.
Regards,
Raj1

I was referring to the anaSqueeze indicator, which can be found here:

https://futures.io/download/ninjatrader-7/indicators/1370-download.html?view

Also you did not tell us, to what setups you wish to be alerted to...

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  #59 (permalink)
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Fat Tails View Post
I was referring to the anaSqueeze indicator, which can be found here:

https://futures.io/download/ninjatrader-7/indicators/1370-download.html?view

Also you did not tell us, to what setups you wish to be alerted to...

@FatTails:
Thanks for your quick reply.
I was looking for long and short entry alerts in market analyser after or during squeeze dot formation.
Thanking you
Ragards,

Raj1

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  #60 (permalink)
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panjm View Post
The PBF squeeze option is chosen by clicking here:
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@panjm:
Thanks for your help.
If possible can you explain how to interpret the signals of PBF Squeeze & counter trend indicator?
Thanking you
Raj1

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