The Squeeze

Just a small stat - very small:


The green row is my broker time which is GMT+2
The yellow row is the sum of the profits for trades that were entered in that hour.

So the trades entered in the timeslot from 4 to 5 am profitted 366$ from monday till thursday.

The testrobot were running from early monday to thursday afternoon. This is an odd stat. And due to some experimenting by me some results are not liable. So this exact stat is not too trustable.

But doing this stat on a daily basis over a periode will give a clear knowledge of when to trade the strategy. You guys should do this even if you are trading manually. Do the log every day.

So I learned from this stat (if it was trustworthy), that I should be trading in the hours 2, 4, 9, 10, 12, 13, 14. All GMT+2.

Thanks for asking. I will answer some time today.

I found this indicator in an old thread. It is rather precise.

Blue color. Squeeze is ongoing.
Green color: Trend is Long.
Red Color: Trend is Short.

I had a look at the code. It is Bollinger and Keltner - just like mine indicator.

TriggerType = 2 means it uses the CCI to concider the direction of a trend.
1 is Stochastic and 3 is RSI.

Sorry. I really got inspired to make a new type of Squeeze indicator. It will be very helpfull. And in the weekend, the servers are always closed and I cannot make any code. So I will be coding today and will not be able to answer your request before the weekend. It will not be forgotten.

Not a problem. Just had time and wanted to help with a visual back testing.

Perhaps the MT5 version?

No, I do not code MT5

So here is my new indicator.

It has a timeframe input. So you can have more than one indicators at the screen. In this example I have 3. M5, M30 and H4.

So if you trade at M5, you have the overview of some HTF. It can be a good idea to shift to those timeframes for an analyse, but at least you can decide not to trade from this one screen only.

The indicator shows a yellow bar for squeeze. Green bar for uptrend and red bar for downtrend.

The trends are read using two EMA's. 8 and 21.

Is combining with Halftrend H4 a good strategy?

Thank you for your input. It looks wonderfull.

I have used HalfTrend a lot - many years ago. It's a fine indicator. Problem is when there are ranging conditions, then it cannot be traded. The chart that you show is a very nice trending periode. If this was Youtube, I would call it "cherry picked". And Gold has had this fantastic run for a long time. I guess that is a Trump reaction. But we need to be able to trade under very different conditions. Gold will not be this nice to us forever.

So in order to use HalfTrend, you must know which instruments will be trending nicely. On beforehand of cause. If you can do that, then you have the Grail. If not, the HalfTrend is no better than so many other indicators. Sorry.

There are two ways to beat the market:

1. Know the trend before it start. And trade it.
2. Discover the trend when it start and know that it is not a false break out.

And be aware when you are in a ranging periode. Await the break out - and not the false one.

That is what this strategy is about. Because a trend often starts with a break out of a ranging condition. Then we are ready to ride it.

I will go into details about this tomorrow.

Market structure with squeezes

H4 structure


After a squeeze we get a Break Out (BO). It can be fake and go back to a squeeze situation, or it can change to a trend in the opposite direction. But many times, we get a nice trend after a BO.
So, when BO has consolidated, we can expect a period with the trend going in one direction. It can be anything from 3 bars to 20. You never know. But 3 bars at H4 is 144 bars at M5.
Trading the BO on H4 does not give a lot of profit. It will be many pips, but the risk is also many pips, so the investment must be low in order to execute money management.


M5 structure – or any lower time frame


We know that all time frames behave the same, so we find the same structures everywhere. From H4 – which just had a BO, we expect to know the direction of the trend. This is very important. We seem to know the trend direction on M5 at most squeezes before they have even started. Isn’t that fantastic? So, there will be loads of situations with squeezes giving birth to nice trends on the M5.

Therefore, we use the tools given in this strategy to trade M5 – or any lower timeframe after your wish. Wait for M5 SqueezeEnd signal and if you have a nice bar in the direction of the H4 trend, then go for it. A nice bar is at least 2*ATR. But you just eyeball when you think you have a nice bar.

But what about if the BO is in the opposite direction of the H4 trend? Well - don't trade. Many times it is a fake.

Stop trading the chart
At any end of bar in the H4 chart, take a look at the situation. Does the H4 trend seem to come to an end? Then stop trading the LTF and go into waiting mode at H4 for the next BO.

What if there are no squeezes?
Right now, Gold is sky rocketing. Therefore, there a no squeezes on H4. But it is a shame to not trade this opportunity. So, if you see a steep trend, then go to M5 anyway and trade the squeezes there.

Result of last week were fine. But I did not follow the strategy strictly. In order to get some trades, i traded M15 - without looking for squeezes at H4. I just observed if EMA's showed the right direction on H4. That gave me many trades and it was profitable.

My problem is that I lag time to trade for the time being. So I can't even sit at every 4-hour bar and decide what to trade. I hope to find time to trade it right soon.

There is an error in RFSqueezeTF_1. It is misleading.

Do not use it.

An update will come.

I like it, I'm following.

hi. i'm still waiting for your new version

jep, I have been working on it. But it has some implications that make it difficult. I cannot use the time on that for now.

Use the attached. It does the same but without historic data.

Hello. It's been quite a while, but I haven't seen any new information
Are you still using this method?

Interestiiiiing

No I am working on other stuff.

I think this strategy does have potential. But I notised, that often when there is a break out from a Squeeze, it seems to last only a few bars and then change direction. So it is hard to catch the long runs with the squeeze. Some filter is missing. And as there were nearly nobody coming with ideas, tests, results etc., I went on to other strategies.

And that is how it works. I am not using a lot of time on FF working alone.