Take profit early (while testing this strategy manually) as i noticed that if you get a big momentum change day the whole option value can go to even very fast.The market consolidates 80 of time and only 20. Squeeze Momentum shows periods when volatility increases or decreases, in other words, when the market goes from the trend into flat movement and vice versa. He made USD 18.2 million on options and futures trading in 2020, which is 1,270 of annual yield. Other more aggressive tests would be to enter a position early when red dot changes to black (high squeeze to low squeeze) and increase position when it changes to green dot (squeeze released/no squeeze) The indicator was created by John Carter.When momentum changes from Aqua to Blue close Calls, from Red to Yellow close Puts.Buy Puts on the first GREEN dot (when squeeze starts) if bearish momentum (Red bars).Buy Calls on the first GREEN dot (when squeeze starts) if bullish momentum (Aqua bars) Modified version of Squeeze Momentum Indicator by LazyBear. ![]() The indicator momentum values seem to be off by 1 day compared to TradingView.The backtest if ran on QC will result in this chart that can show the same visualisation: The Squeeze Chart I'm sharing just the indicator here in the hopes of getting the community to offer improvement suggestions of how this can be done better. It uses Bollinger Bands and Keltner Channels to determine when a squeeze is happening. This implementation is derived from the John Carter TTM Squeeze indicator that he discussed in his book “Mastering the Trade”. ![]() ![]() I would like to share one of the most popular indicators on TradingView called Squeeze Momentum Indicator done by LazyBear.
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