QFChart - Live Squeeze Momentum Demo

About Squeeze Momentum (SQZMOM) Indicator

What is Squeeze Momentum?

The Squeeze Momentum (SQZMOM) indicator, popularized by trader John Carter, is a powerful tool that combines Bollinger Bands and Keltner Channels to identify periods of consolidation (the "squeeze") and explosive breakout moves. When volatility contracts and price is coiling, the indicator signals a squeeze condition. When the squeeze releases, the momentum histogram shows the direction and strength of the breakout. This makes SQZMOM invaluable for timing entries at the start of new trends.

How Squeeze Momentum Works

The SQZMOM indicator consists of two main components:

Squeeze Detection - When Bollinger Bands contract inside Keltner Channels, a "squeeze" is active (shown as colored dots)
- Gray dots - Normal squeeze (volatility is low, consolidation)
- Black dots - Extreme squeeze (very low volatility, major breakout likely)
- No dots - No squeeze (Bollinger Bands expanded outside Keltner Channels)
Momentum Histogram - Shows the direction and strength of momentum as price moves
- Green bars (increasing) - Bullish momentum is growing
- Light green bars (decreasing) - Bullish momentum is fading
- Red bars (increasing) - Bearish momentum is growing
- Light red bars (decreasing) - Bearish momentum is fading

Trading the Squeeze

The classic Squeeze Momentum trading strategy follows these steps:

Identify the Squeeze - Wait for dots to appear, indicating low volatility consolidation
Watch for the Release - When dots disappear, the squeeze is releasing (volatility expanding)
Check Momentum Direction - Enter long if first histogram bar is green, short if red
Ride the Trend - Stay in the trade as long as momentum continues in your direction
Exit on Reversal - Exit when histogram changes color or momentum fades significantly

Advanced Squeeze Patterns

Multi-Squeeze Setup - Multiple consecutive squeeze periods often lead to stronger breakouts
Extreme Squeeze (Black Dots) - Very tight consolidation; expect explosive move when released
False Squeeze Release - Dots disappear but momentum is weak; wait for confirmation
Momentum Divergence - Price making new highs but momentum declining; potential reversal signal
Squeeze on Multiple Timeframes - When multiple timeframes show squeezes, breakout potential is higher

Squeeze Momentum with QFChart & PineTS

This live demo demonstrates real-time squeeze detection and momentum analysis using QFChart and PineTS. The indicator continuously calculates Bollinger Bands, Keltner Channels, and momentum values using PineTS's Pine Script runtime, while QFChart renders the interactive histogram with color-coded bars and squeeze markers. The chart updates every 3 seconds with live market data from Binance, allowing you to see squeeze conditions forming and releasing in real-time.

Technical Implementation

This demo showcases several advanced technical features:

Event-Driven Streaming - Uses PineTS.stream() with event handlers to receive live indicator updates
Stateful Calculations - PineTS maintains internal state for Bollinger Bands, Keltner Channels, and Linear Regression
Separate Pane Rendering - QFChart displays SQZMOM in its own pane below the main chart (25% height)
Multi-Plot Coordination - Histogram bars and squeeze dots are synchronized and updated together
Live Price Tracking - Displays current price with countdown timer showing time to bar close

Interpreting the Colors

Element	Color	Meaning
Histogram	Dark Green	Bullish momentum increasing
Histogram	Light Green	Bullish momentum decreasing
Histogram	Dark Red	Bearish momentum increasing
Histogram	Light Red	Bearish momentum decreasing
Dots	Gray	Normal squeeze active
Dots	Black	Extreme squeeze active

Use Cases

Breakout Trading - Catch explosive moves at the start of new trends
Swing Trading - Enter on squeeze release, exit when momentum reverses
Scalping - Trade momentum shifts on lower timeframes (1m, 5m)
Trend Confirmation - Use alongside trend indicators to avoid false breakouts
Range Trading - Avoid trading during squeeze periods (low volatility)
Options Trading - Buy options before squeeze release (expecting volatility expansion)

Getting Started

To implement Squeeze Momentum in your own application:

// Create PineTS instance
const pineTS = new PineTS(PineTS.Provider.Binance, 'BTCUSDC', '15m', 500);

// Stream indicator data
const stream = pineTS.stream(sqzmomIndicator, {
    pageSize: 100,
    live: true,
    interval: 3000
});

// Handle live updates
stream.on('data', (ctx) => {
    if (!chart) {
        // Initialize chart with historical data
        chart = new QFChart.QFChart(container, { /* options */ });
        chart.setMarketData(ctx.marketData);
        indicator = chart.addIndicator('SQZMOM', ctx.plots, {
            isOverlay: false,
            height: 25
        });
    } else {
        // Update with live data
        indicator.updateData(ctx.plots);
        chart.updateData([latestBar]);
    }
});

Live Squeeze Momentum Demo