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The Squeeze On Chart is a modified version of the Squeeze indicator. Unlike the previous version, which was presented in the lower chart window as a histogram, Squeeze On Chart is displayed directly on the price chart, coloring the candles in one of three colors, indicating the direction of the trade that should be opened , thereby simplifying the trading conditions. That is, coloring a candle in any color can be considered as an indicator signal. Squeeze On Chart is perfect for use in various trading strategies as an additional indicator confirming signals, but the possibility of its independent use is also not denied.
Squeeze On Chart is suitable for trading on any convenient timeframe using any currency pair.
Input parameters
Despite the different visualization of the Squeeze On Chart and Squeeze indicators, they have absolutely identical parameters in their settings, which can be responsible both for the internal operation of the indicator and for its color scheme displayed on the chart.
- Period - indicator calculation period. The default value is 25.
- Deviation Multiplier - parameter of the deviation multiplier of indicator values. The default value is 1.
- ATR Multiplier - parameter responsible for the market volatility multiplier. The default value is 1.
Indicator signals
The Squeeze On Chart indicator, after performing certain calculations, paints the candles of the current market in one of three colors indicating the current trend. If an upward trend is determined, then one should consider the possibility of opening a buy trade, if a downtrend, then a sell trade, and if the market is determined to move sideways, that is, the candles acquire a neutral hue, then in this case all current trades should be closed immediately, and new ones are temporarily not opened in order to avoid unprofitable trading.
Signal for Buy trades:
- An uptrend is defined in the market, that is, at least three candles must turn into a color with a growth value.
After receiving such a condition, a long position can be opened on a certain candle. It should be closed after the candles begin to turn into other colors, this will mean the end of the upward movement and the beginning of a new one, and in this case, it should be considered opening new trades, of course, if the market lateral movement is not detected.
Signal for Sell trades:
- At least three current candles should be colored with a falling value, this will indicate the beginning of a downtrend.
Upon receipt of this signal, a short position may be opened on the current candle. It should be closed after one of the candles acquires a different color, in which case one should prepare to open new positions. But it should be borne in mind that trades cannot be carried out during sideways movement.
Conclusion
The Squeeze On Chart indicator is very clear and easy to use, even compared to its standard version. When trading with this indicator, it is only needed to take into account the color of the current candle, and after that a position can be opened in a certain direction. But for complete confidence in trading signals, it is recommended to use the indicator with additional instruments or other indicators, thus increasing the possibility of obtaining maximum profit.
