Squeeze Momentum IndicatorHello.
I thought it would be a good idea to comment on one good indicator.
This is SQZMOM by LazyBear.
It is one of a class of volatility indicators.
It has two indicative messages.
1. Crosses.
Black crosses indicate price contraction. Price contraction signals that the movement can no longer be continued in the direction of the previous momentum.
Gray crosses mean expansion of the market, respectively, the realization of the potential in the direction of the current momentum.
2. Momentum bars.
Green ones show upward movement.
Red ones - downward movement.
Now let's look at the difference of situations 1 and 2, first of all through the difference of indication 1 (Crosses).
No black crosses have appeared on situation 1. The price is breaking out of the channel and further market expansion is taking place.
Situation two also has a channel, but we already see 4 consecutive black crosses and a lowering of indicator bars.
It is also a divergence at the same time.
As with any other indicator, you will monitor whether the bar has reached the maximum zone (90 on average).
Situation 1 has not reached, but there are black crosses.
Situation 2 has reached ~90 zone.
The optimal entry point (in theory) is the first black cross and the down or up bar at the same time.
If momentum falls, it's short. If it rises, it's long.
However, practice shows that it is not enough, and we have to hedge with other signs. In this case the reliability increases.
Now you can predict the candle's exit from channel 2.
