Gabriel's Squeeze Momentum PRO

“Gabriel’s Squeeze Momentum PRO” is a next-generation evolution of the classic SQZMOM concept. It layers multiple John Ehlers filters, Jurik smoothing, adaptive cycle-detection, and a Cauchy-weighted price filter on top of the familiar Bollinger-Band-inside-Keltner-Channel squeeze logic. The goal is to pinpoint volatility contractions and immediately gauge whether forthcoming expansion is likely to break bullish or bearish—while screening out noise, lag, and regime shifts across any symbol or timeframe.

1 · What the script plots
Plot What it represents Why it matters
Momentum line (teal/red) Price-de-trended linear-regression of a Cauchy-filtered source, optionally normalized. Measures directional thrust during / after a squeeze.
Signal line (white JMA) Jurik moving average of the momentum line. Smooth trigger for crossovers / reversals.
Squeeze dots (blue, black, red, yellow, purple, green) Real-time volatility state: No squeeze → Wide → Normal → Narrow → Very Narrow → Fired. Helps anticipate explosive moves as BB exits KC.
Cyclic RSI bands (cyan / fuchsia) Dynamic overbought / oversold bands derived by MESA dominant-cycle analysis. Contextualizes momentum extremes—no fixed 70/30.
Rate-of-Change (optional) (orange / blue shading) ROC of the momentum-signal spread, scaled. Highlights acceleration / deceleration.
Reversal guide lines (optional colored rays) Drawn when momentum crosses its JMA and reversal-mode is on. Visual confirmation of early trend change.

2 · Key engine components
Cauchy PDF-weighted moving average
Creates a heavy-tailed weighting curve; center bars dominate while still capturing fat-tail outliers—excellent for choppy instruments or volume-weighting (Volume weighted?).

Butterworth High-Pass & Super-Smoother Low-Pass
Strip out drift, then smooth what’s left. This isolates true cyclic motion before momentum is computed.

Fast RMS normalizer
Converts the band-pass output into a unit-scale “power” reading—vital for adaptive thresholds.

Goertzel + MESA dominant-cycle
Auto-detects fast & slow cycles, then blends them to size overbought / oversold bands and to set the adaptiveLength (if Use Adaptive Length? is enabled).

Jurik RSX & JMA
Provide ultra-low-lag smoothing for momentum and for reversal detection.

3 · Input groups and how to tune them
Group Why change it Tips
Normalization (Unbounded / Min-Max / Standard Deviations) Puts momentum & signal on the scale that best suits the asset. Crypto / small-caps: StdDev (handles volatility).
FX / indices: Min-Max or leave unbounded for raw juice.
Cauchy Distribution Tailors the Cauchy filter. Gamma ↓ (0.1-0.4) ⇒ faster / riskier. Use Adaptive Length pairs it with MESA cycle length for auto speed control.
Rate of Change Visual momentum acceleration. Leave off (Show Rate of Change = false) if you want a cleaner pane.
Momentum Colors / Directional Momentum? Switch between classic SQZMOM coloring and trend-biased histogram. Turn on when you prefer “green-gets-greener / red-gets-redder” style signals.
Squeeze Colors & Thresholds Fine-tune what “wide / normal / narrow” mean. Larger assets (SPX, BTC-Perp): raise the thresholds a touch. Thin or low-ATR symbols: lower them.
Multi-Time-frame blocks (1 h, 4 h, D, W, M) Pre-sets for BB/KC length, squeeze thresholds, and reversal MA length per TF. The script auto-detects the chart timeframe and loads the matching row—just adjust each block once.
Reversal Signals Whether to draw vertical rays on momentum crossovers. Use on swing-trading timeframes (≥1 h) to catch early momentum flips.

4 · How to read & trade it
Scan for purple / yellow / red dots
These indicate Very-Narrow, Narrow, and Normal squeezes—markets are coiling.

Wait for a fired squeeze (green dot)
BB has pushed outside KC; volatility is expanding. Momentum direction often dictates breakout bias.

Check momentum relative to zero & signal
Bullish setup: Momentum > 0 and crossing above signal. <br>Bearish setup: Momentum < 0 and crossing below signal. <br>Alerts “Bullish / Bearish Trend Reversal” are raised here if enabled.

Validate with cyclic bands
If momentum launches from near the lower cyan band, bullish moves are higher-probability (symmetrical for upper fuchsia band).

Confirm trend strength
Directional-momentum histogram keeps turning brighter in trend direction; ROC is above zero and rising.

Manage the trade

First target = prior squeeze mid-range or recent swing high/low.

Consider scaling out when momentum weakens (histogram fades) or reverses through signal line.

Optional: draw the reversal rays to highlight exit zones automatically.

5 · Practical workflows
Scalpers (1-5 min)

Uncheck Use Adaptive Length, set main Length to 10-12, Gamma to 0.3.

Use ROC for ultra-fast divergences.

Treat Normal squeezes (red) as tradable; ignore Wide. Healthy Volume is ideal.

Swing traders (1 h – 4 h)

Keep default adaptive length; enable 1-H/4-H reversal blocks.

Trade only after Very-Narrow/Narrow squeezes; ride until weekly/daily reversal ray prints.

Position / Trend followers (Daily+)

Raise Wide/Normal thresholds a bit (e.g., 2.2 / 1.7).

Momentum normalization = Standard Deviations to filter regime shifts.

Combine with higher-timeframe MTF panel or moving-average ribbons.

6 · Built-in alert catalog
Alert name Fires when Typical action
🟢 Fired Squeeze Green dot appears (vol expansion already under way) Stay in trend or add on pullbacks.
🟠 Low / 🔴 Normal / 🟡 Tight / 🟣 Very Tight Respective squeeze engages Get your watch-list ready; plan trades.
🐂 Bullish / 🐻 Bearish Trend Reversal Momentum crosses signal in requested direction Entry / exit / scale adds.

Set alerts on “Once Per Bar Close” for reliable signals.

7 · Best practices & caveats
Context is king – Use higher-timeframe structure (support/resistance, VWAP, market profile) to avoid false breakouts.

Data quality – On illiquid symbols, consider turning volume weighting off (pre-market gaps distort results).

Normalization choice – Mixing different normalizations across charts can confuse muscle memory; pick one style per asset class.

Lag vs. noise – If entries feel late, lower Gamma or disable adaptive length. If too jumpy, increase Length or choose Standard-Deviation normalization.

Not a stand-alone holy grail – Combine with risk management (ATR-based stops, Kelly-fraction sizing) and confirm with price action.

Harness the script’s adaptive filtering, multi-TF presets, and rich alert suite to spot compression, time breakouts, and stay on the right side of momentum—whether you’re scalping ES futures or swing-trading alt-coins.