Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

BB Squeeze Replica For Tradestation

Recommended Posts

This is an interesting indicator re-created by other traders on the TS forum. Known as the BB Squeeze Indicator, its concept is based on capturing breakout moves by using the Bollinger Bands and the Keltner Channels.

 

Whenever the Bollinger Bands fall inside the Keltner Channels the indicator will fire a signal. This signal is represented by a red dot on the lower pane.

 

When the Bollinger Bands breakout of the Keltner Channels the indicator fires a squeeze indicated by a blue dot on the lower pane. The trading signal is taken when the blue dot appears after the red dot in the direction of momentum. Momentum is plotted as a histogram. If the momentum is green (up) on a squeeze, this is a long signal. If the momentum is red (down) on a squeeze, this is a short signal.

 

See attachment for a screenshot.

 

Note: Please refer to the Tradestation Forum for the owner of this indicator.

squeezeindicator.jpg.dab124ab3c90102a968f5582bf10870b.jpg

BB_SQUEEZE.ELD

Share this post


Link to post
Share on other sites

Just taking a look at this indicator and am trying to backtest it in Amibroker. Do you know of a version for Amibroker? Most of it is pretty straight forward; just not sure about the momentum portion and how it is handled.

 

thx,

 

Ed

Share this post


Link to post
Share on other sites

Has anyone put this backtesting in TS? If not I'm willing to do and share the results with you all. I can convert it into a strategy and see if it's profitable or not. I'll be back on March 7th so I can get started then.

 

I need to get more examples on this indicator so I can have a clear understanding how this works. Any details (links, etc) would greatly help.

 

So I'll start with questions:

 

1) what is considered a dominant momentum? big green histogram? how big and how long is it? Does it have to more of these than red histogram?

2) What about divergence? For example, while prices are making new high, but a green histogram is smaller than the last green histogram peak. Any consideration in that?

3) The signals to trade only when the dots turn blue? Where do we exit? When it turns red?

4) What stops are used? Trailing stops, hard normal stops?

5) Target profits?

6) What timeframes are recommended? Tick or minute charts?

7) What instruments are recommended?

Share this post


Link to post
Share on other sites

My initial impression is that from the interpretation and use, there seems to be alot of false signals or that signals fire off but prices stall or just goes the other direction. Prove me wrong.

Share this post


Link to post
Share on other sites

To me its like the New Market Paradigm that Walt Downs put together. The bollinger contraction is essentially volatility declining which means that when a breakout occurs it is more likely to continue (volatility expansion/contraction being cyclic).

Share this post


Link to post
Share on other sites

I believe the guys over at Trade The Markets use a 5 minute squeeze more often than the others. I personally do not use this indicator but I have seen the 5 minute squeeze give off nice signals before an actual breakdown or breakout.

Share this post


Link to post
Share on other sites

It doesn't fly. At least not in putting in a system as instructed specifically by them. Too many false signals despite restricting it to trade only morning, only afternoons, or both. I even optimized the parameters to see if it has some hope of a consistent profitability. Nada. Not sure if I am going put more energy into it.

Share this post


Link to post
Share on other sites
Guest FLX

You have to use this with a trend line break and you might get the result your looking for to trade. What do you do when the BB or macd is Neutralizes that is a valid signal but how can you back test Neutralization in trade station you cant so you have to wait for a trendline break or s/r breaks. (flat lines) If you dont you could miss the trade! If you cant put all the component in to trade station it is not worth back testing.

 

BB in an uptend go's up then flat, goes up than flat, go's up than flat! You get the picture! How do you trade flat ........Trendline breaks! S/R Lines!

Share this post


Link to post
Share on other sites

Hi FLX, do you have an example? In charts would be very helpful. I followed strictly the rules of that TTM people gave. Adding other things is a whole new subject. Incorporating trendlines along with Squeeze will be challenging to code.

Share this post


Link to post
Share on other sites
Guest FLX

This is a big subject and something you will have to follow up on due to the vast nature of the trend line, but if you want a good book on the subject look at Tom Demark, The Science of techical Analysis.

If you are not using trendlines you will experience hugh problems determining trendline support and resistence. We have tested all these indicator, but most of the time there late, with a signal to trade so you need a trendline to confirm break out on the 15m and the 60 min. The best example is in choopy market. You must have s/r line and trendlines to confirm breakout. We have wrote our own indicator to avoid this problem. Most of the MACDS are 3 to 5 bars late and the trades are long gone in Most cases.

 

If the macd is turning(not confirmed) you have a trend line break, the trendlline confirmed the move your ready to go what are you going to do wait for the macd that is four bar behind.

 

The biggest mistake a trader can make is not draw fibonacci and trendlines on there chart. Long term and short term DY,WKLY, 240m, 1HR, 15m

 

You dont do what feels good, you do what has to be done! Let the market determine where it will go.

 

I made the mistake last week of determining direction, the direction was correct but it went down 500 dollar before it started to rally.

A simple 60 min trendline would have solved the problem.

 

Always look at the 60 and 15 min trendline!

 

Dont get lock into a direction, let the market tell you the rest of the story.

 

Something i learned if the market moves, (days range 700 points) or more (ER2 Dow SP) the next days volitility is very high and expect major swing in the market the next day.

This is the reason the market went down 300 more than expected!

Share this post


Link to post
Share on other sites
This may be a difficult question but how do I get this indicator into Tradestation 2000i. ?

 

relatively new to tradestation.

 

Thanks

 

Dovee you will have to create an indicator ( name it : _BB Squeeze )and paste this formula, then verify it... try if it works, if it doesnt please tell me.. you may need some functions... should work... cheers Walter.

 

 

[LegacyColorValue = true];

 

 

 

 

{@@14439@@}

{04/05/2006}

//Updated by TradingDude, fixed "division by zero error"

 

{02/16/2005}

{Updated by Redlock}

{

Well, I have been working in this indicator. I have made a couple of changes:

(1) that if the momentum changes direction, it changes color.

(2) I have taken out the plotting of the alertline

(3) have the dots plotted along the axis

(4) Have changed the name of the indicator to BBSqueeze (cuts down on confusion).

 

I think that you will find that it resembles what is on the TTM indicator.}

 

{------------------------------------------------------------------}

{mmillar, 05/12/2005

For anyone interested I made a small change to the indicator(s) above.

I found that the indicator displayed fine for ES, YM etc but screwed up for FX -

this is due to the number of decimal places used by the symbol.

I just added a multiplier so the indicator is normalised across all symbols.

 

Add the following lines...

Vars: LHMult(0);

if ( barnumber=1 ) then Begin

LHMult=pricescale/minmove;

end;

 

And modify the following line so that it includes the LHMult variable...

 

Plot3(value2*LHMult, "NickmNxtMove", color);

 

}

 

{ Bolinger Band Squeeze (BBS) Indicator }

 

{ A variation of an idea by nickm001 (Originally coded by eKam) that when Bollinger Bands (BB) fit inside

the Keltner Channel (KC), a breakout is about to occur. It works on longer term charts, such as

15 minute to daily charts.

 

This code creates an indicator that plots the ratio of BB width to KC width. When BB and KC widths are

the same, the ratio (BBS_Ind)is equal to one (1). When the BB width is less than the KC Width (i.e. BB

fit inside KC), the BBS_Ind is less than one and a breakout is indicated.

 

An Alert Line is provided to indicate the level at which the trader considers that the "sqeeze is on" and

a breakout is eminant.

 

Coded by Kahuna 9/10/2003

 

Added by eKam: 9/10/2003

The average of where price has been relative to the Donchian mid line and Exponential average of the

same length is also plotted as an attempt to predict the direction of the breakout.

 

Added 2/1/2005 For decreasing Delta bar....darker colors to highlight the change.}

 

Inputs: {------------------------------------------------}

Price(Close),

Length(20), { Length for Average True Range (ATR) & Std. Deviation (SD) Calcs }

nK(1.5), { Keltner Channel ATRs from Average }

nBB(2), { Bollinger Band Std. Devs. from Average }

AlertLine( 1 ), { BBS_Index level at which to issue alerts }

NormalColor( Red ), { Normal color for BBS_Ind }

AlertlColor( Blue ); { Color for BBS_Ind below alert line }

 

 

Variables: {---------------------------------------------}

ATR(0), { Average True Range }

SDev(0), { Standard Deviation }

BBS_Ind(0), { Bollinger Band Squeeze Indicator }

alertTextID(-1),

Denom(0),

LHMult(0);

 

 

 

if ( barnumber=1 ) then

Begin

If minmove <> 0 then

LHMult = pricescale/minmove;

end;

 

if barnumber = 1 and alertTextID = -1 then

alertTextID = Text_New(date,time,0,"dummy");

 

{-- Calculate BB Squeeze Indicator ----------------------}

ATR = AvgTrueRange(Length);

SDev = StandardDev(Price, Length, 1);

 

Denom = (nK*ATR);

If Denom <> 0 then

BBS_Ind = (nBB * SDev) /Denom;

 

If BBS_Ind < Alertline then

SetPlotColor(1, NormalColor)

else

SetPlotColor(1, AlertlColor);

 

{-- Plot the Index & Alert Line -------------------------}

Plot1(0, "BBS_Ind");

 

{-- Plot delta of price from Donchian mid line ----------}

value2 = LinearRegValue(price-((Highest(H, Length)+Lowest(L, Length))/2

+ xAverage(c,Length))/2,Length,0);

 

var:color(0); color = yellow;

 

if value2 > 0 then

if value2 > value2[1] then

color = green

else

color = darkgreen;

 

if value2 < 0 then

if value2 < value2[1] then color = red

else

color = darkred;

 

Plot3(value2*LHMult, "NickmNxtMove", color);

{plot3(value2,"BB Squeeze",color);}

 

{-- Issue Alert when the Squeeze is On ------------------}

if BBS_Ind crosses below AlertLine

and Text_GetTime(alertTextID) <> time then

begin

text_setLocation(alertTextID, date, time, 0);

Alert("Check for Squeeze Setups on " + SymbolName);

end;

 

{-- Issue Alert when the Squeeze Releases ---------------}

if BBS_Ind crosses above AlertLine

and Text_GetTime(alertTextID) <> time then

begin

text_setLocation(alertTextID, date, time, 0);

Alert("Squeeze is Over on " + SymbolName);

end;

 

if BBS_Ind crosses below AlertLine then

SetPlotColor(1, Green);

Share this post


Link to post
Share on other sites
Guest FLX

https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=4173&SearchTerm=choas&txtExactMatch=

I dont have time to post this link or indicator on your site but this will help you out a lot, save the time and energy and use this indicator. Choas A/o

I tested this and it work a lot better, use it the same way but has alot better signal. Test it out and let me know if it works better than the bb.

I use it in 5m and 10 min chart and 471TK put up and run with it.

Thanks Mike

Share this post


Link to post
Share on other sites
Guest FLX

Place a momentum indicator over top, the Choas A/O, when it break below.. above the zero line on the Mom ZERO line look to enter off the 5 min Chart. You want the Choas to change Green first or red and moving up/dwn in that direction of the trade at the same time . You can place an order out side the range of the last 5 bar to enter! You had 5 trades on the Em dow on friday! Tell me what you see! Alert Do not trade at 11am thur 13:00 Bad time for indicators......Unless you like Spanked ! Press FLX at the left for a picture image.

Share this post


Link to post
Share on other sites

Hi Walter, The code will not verify in 2000i. I think some of the functions are not quite the same, for example it doesn't seem to recognise what the line

"SDev = StandardDev(Price, Length, 1);" is.

either the term Satandarddev or the ( variables in the brackets)

 

Will investigate further but if you have any suggestions I would be grateful.

 

Thanks

Share this post


Link to post
Share on other sites
Hi Walter, The code will not verify in 2000i. I think some of the functions are not quite the same, for example it doesn't seem to recognise what the line

"SDev = StandardDev(Price, Length, 1);" is.

either the term Satandarddev or the ( variables in the brackets)

 

Will investigate further but if you have any suggestions I would be grateful.

 

Thanks

 

 

ok dovee, you have to create a function with the exact name : Standarddev

 

then paste this:

 

{ Standard Deviation of Population or Sample }

 

inputs:

Price( numericseries ),

Length( numericsimple ),

DataType( numericsimple ) ; { pass in 1 if you are working with the entire

population, and 2 if you are working with a sample and want the SD for the

population }

 

Value1 = VariancePS( Price, Length, DataType ) ;

if Value1 > 0 then

StandardDev = SquareRoot( Value1 )

else

StandardDev = 0 ;

 

 

{ ** Copyright © 1991-2003 TradeStation Technologies, Inc. All rights reserved. **

** TradeStation reserves the right to modify or overwrite this analysis technique

with each release. ** }

 

 

 

 

then verify function.... after that go open and an verify again _bbsqueeze indicator... try it if again error tel me maybe need more functions. cheers Walter

Share this post


Link to post
Share on other sites

Hi Walter, thanks for that. I did just manage to get the other one working by simply removing the "1) in the line. It now works well.

 

 

The Change in colour form red to blue is the squeeze Ind alert, is that correct?

 

Thanks again

Share this post


Link to post
Share on other sites
Hi Walter, thanks for that. I did just manage to get the other one working by simply removing the "1) in the line. It now works well.

 

 

The Change in colour form red to blue is the squeeze Ind alert, is that correct?

 

Thanks again

 

yes dove, the centerline changes color as the bb gets inside or outside keltner, showing market phases... dont take this indicator alone, wont be effective just by itself... its a good indicator to understand market climate (just that)... cheers Walter.

Share this post


Link to post
Share on other sites

Hi Walter, As I said I'm relatively new to tradestation, so soory for these question but I'm just trying get a handle on what the coding does for this bb Squeeze ind.

Apart from the alert line coloursetc, what term determines the "momentum" part of the indicator. It seems to be "nicknxtmove" but what is the coding for this?

or is this a called function?

Share this post


Link to post
Share on other sites

I trade almost exclusively price action, internals, MP etc. Iow, i don't use lagging indicators.

 

The squeeze indicator is the one exception. I have found it's robust on the 5 min. timeframe, but I do filter trades.

 

For example, if a long squeeze fires above an obvious support level (floor trader pivot) that makes it much more likely i'll take the signal.

 

On the other hand, I won't take it if it is firing long right into a congestion zone or obvious resistance level.

 

I've watched some of the trade the market videos, learned about the indicator, and programmed one into the Quotetracker paintbars.

 

I use it with the understanding that there is no holy grail, and it must be used in conjunction with logical analysis of support/resistance/ and price action.

 

It is true that volatility is much more cyclical and there is more serial correlation in regards to volatility, than price.

 

I think that basic reality is why this indicator works, at least for me

Share this post


Link to post
Share on other sites

Anyone knows if it is possible to have a squeeze for radarscreen? something like ttm with status (squeeze/fired), signal (long/short) and number of bars (it is in squeeze or fired).

 

When adding bbsqueeze to radarscreen, the data doesn't seems to match the infos on a graph.

 

Thank you.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Why are Market Wizard's insults and humiliations tolerated with impunity whereas our replies are sistematically banned? Just curious.
    • Bitcoin (BTC) Consolidates As Bears And Bulls Tussle Above $9,400 Support Key Resistance Zones: $10,000, $11,000, $12,000 Key Support Zones: $7, 000, $6, 000, $5,000 BTC/USD Long-term Trend: Ranging Bitcoin has failed to break above $10,400 overhead resistance. The bulls made two unsuccessful attempts at the resistance. In the recent one, the bears took the price to a low of $9,290 and then pulled back above $9,400. In the interim, the price is fluctuating above $9,400 and approaching the high of $9,800. As the bulls have failed to push above the overhead resistance, the pair may commence a range movement. Nonetheless, it is anticipated that if the bears break below the $9,400 support, selling pressure may resume. Meanwhile, BTC may continue the range-bound movement. BTC/USD – Daily Chart Daily Chart Indicators Reading: After the downward move of Bitcoin, the Relative Strength Index has also fallen to level 52. This simply means the coin is above the centerline 50. In other words, BTC is in an uptrend and it is likely to rise. Price broke the support line of the ascending channel. The uptrend will be in proper perspective only when the bulls break into the ascending channel. BTC/USD Medium-term Trend: Bearish On the 4- hour chart, Bitcoin now trades between $9,400 and $10,200 after the first breakdown at the $10,400 overhead resistance. The bulls tested the resistance at $10,200 twice , before the downward move. The large bearish candlesticks tested a low of $9,290. However, the small body candlesticks that follow are called indecisive candlesticks. BTC/USD – 4 Hour Chart 4-hour Chart Indicators Reading Presently, BTC is trading above a 25% range of the daily stochastic. That is the coin is in the bullish trend zone. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways trend. General Outlook for Bitcoin (BTC) From every indication, if the bulls fail to push above the overhead resistance, the price action in October and November will repeat itself. For the past three days, BTC is still fluctuating above $9,400. Instrument: BTC/USD Order: Sell Entry price: $9,700 Stop: $9,900 Target: $8,400 Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results Source: https://learn2.trade 
    • The Sharp Recovery In EURJPY Lose Momentum, Falters Beneath The Level At 121.00 EURJPY Price Analysis – February  21 The single European currency rose 88 basis points or 0.73% against the Japanese yen in the previous session. After two consecutive sessions showing strong growth, EURJPY is now losing some momentum amid JPY bulls. Key Levels Resistance Levels: 122.37, 122.87, 121.00 Support Levels: 119.99, 117.08, 115.83 EURJPY Long term Trend: Ranging The EURJPY rebound from the level of 118.46 continues to advance from the previous session, but today it has stalled. Super-speed acceleration claims that a decline from 122.87 level could have ended in three waves to 118.46 level. However, the support level formed by the intersection of the moving average of 5 and 13 at 119.90 level can support the exchange rate during the trading session on Friday, while greater advance can continue from the level of 115.83. EURJPY Short term Trend: Ranging From an analysis of the 4-hour time frame, the intraday bias is now on the rise for a resistance level of 121.15 at first. The breakthrough will be aimed at 122.87 high levels. On the other hand, a breakdown of the secondary support levels of 119.99 could change the bias towards lower testing to retest the low level of 118.46 instead. Instrument: EURJPY Order: Sell Entry price: 121.00 Stop: 119.66 Target: 121.47 Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results Source: https://learn2.trade 
    • What makes InstaForex a good choice is that it is a reliable binary options trading platform so the trader would not have to dread anything if he decides to choose this platform.  They offer a 24/7 consultancy support. The exclusive online support facilitates the trader to get all the help that he has been looking for so far. This means that if the trader has any questions he can put them up ready to reach a solution to his problems. InstaForex provides trading binary options on currency pairs, cryptocurrency pairs, metals, and CFDs on shares.   InstaForex Broker 2.000$ Forex / Binary Options No Deposit Bonus! Crypto Trading Available! https://binaryoptionsfree.eu/review/instaforex-broker-2-000-forex-binary-options-no-deposit-bonus/
    • CRYPTOBO Broker - Binary Options No Deposit Cryptocurrency Bonus Real 10,000 Satoshi For Free!Make Financial Bets using Bincoins and win Bitcoins!Receive 10,000 Satoshi for Free Without Deposit to bet and win!Read CRYPTOBO Review!
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.