Combined Box and Squeeze Strategy (Now includes shaded boxes)

16 Nov 2023

Description:

This Pine Script strategy, titled "Combined Box and Squeeze Strategy", is a unique blend of two powerful trading concepts: "The Box Percent Strat" and "Squeeze Box [DW]". The strategy is designed to work on the TradingView platform and can be applied to a wide range of financial instruments across various timeframes.

Key Features:

Box Percent Strategy: This part of the strategy creates dynamic boxes based on percentage movements. These boxes adjust their size depending on the price action, enabling traders to visualize significant price levels for potential entries and exits.
Squeeze Box Indicator: Incorporated from "Squeeze Box [DW]", this element adds a volatility component to the strategy. It helps identify potential breakout situations by highlighting periods of low volatility, which are often precursors to significant price movements.
Light Blue Shading: To enhance visual clarity and ease of interpretation, the areas between the top and bottom of the box are shaded in light blue. This feature provides a quick and easy way to identify the current box formation.
Multiple Moving Averages and Conditions: The strategy employs various moving averages (EMA, SMA, SMMA, etc.) with an adjustable sampling period. It also includes conditions for buying based on moving average trends and squeeze box breakout signals.
Risk and Trade Management: Incorporates a basic risk management strategy where the number of shares to trade is calculated based on the user's specified risk per trade and the size of the box.
Customizable Parameters: Several inputs and parameters can be customized, including risk per trade, box size percentage, moving average type, and more, allowing traders to tailor the strategy to their trading style and risk tolerance.
Usage:

This strategy is best used in markets with clear trends and can be applied to various asset classes including stocks, forex, and cryptocurrencies. It is particularly useful for traders looking to capitalize on breakout scenarios and for those who appreciate visual aids in chart analysis.

Remember, this script should be used as a part of your broader trading strategy and should not be relied upon solely for making trading decisions. Always backtest the strategy with historical data and use it in conjunction with other analysis methods.