Squeeze Index QuantAlgo
- Indicators
- Krystof Zak
- Version: 1.0
The Squeeze Index aims to measure the action of price being squeezed, and is expressed as a percentage, with higher values suggesting prices are subject to a higher degree of compression.
Settings
It is recommended using a convergence factor equal to the period setting or a convergence factor twice as high.
Settings
- Convergence Factor: Convergence factor of exponential envelopes.
- Length: Period of the indicator.
Usage
Prices being squeezed refer to the action of price being compressed within a tightening area. Prices in a tight area logically indicate a period of stationarity, price breaking out of this area will generally indicate the trader whether to buy or sell depending on the breakout direction.
It is recommended using a convergence factor equal to the period setting or a convergence factor twice as high.