Squeeze Momentum Indicators for cTrader

A squeeze momentum indicator flags a squeeze when Bollinger Bands contract inside Keltner Channels, a sign that volatility has compressed. When the bands expand back outside, the compression is said to release, and a histogram shows which way momentum is pushing.

A widely copied version measures how far the close sits from the average of the recent range's midpoint and a moving average, smoothed by linear regression. Others use a plain momentum oscillator, and rising bars above zero show strengthening upward pressure while shrinking bars show it fading.

The Bollinger and Keltner multipliers decide how narrow the bands must get before a squeeze registers: a wider Keltner setting or a tighter Bollinger setting flags more of them. The shared length sets how many bars each volatility measure covers, shifting when phases begin and end.

No, the release only changes dots and colors on the chart, and this kind of indicator, available in cTrader for Windows and Mac, sends no orders. Acting on a release automatically would take a separate cBot, for example one adapted from the breakout sample, under settings you choose.

Scroll back on several markets and timeframes and note whether each release led to a sustained move, fizzled or broke the wrong way. The dots do not predict direction; many versions are free, and trials of paid ones allow the same review.