The Combined WaveTrend and Squeeze Momentum Indicator with VWAP (CWT_SQZMOM) is a powerful trading tool designed for traders looking to capitalize on market momentum and volatility squeezes, with the added insight of volume-weighted average price (VWAP) levels.
This custom indicator integrates three key components:
Squeeze
Features
Visual Cues: Utilizes color-coded histograms, circles, and triangles to provide clear visual signals for trading opportunities.
Customizable Parameters: Allows traders to adjust input values for the WaveTrend Oscillator and Squeeze Momentum Indicator to fit various trading styles and timeframes.
Dynamic Indicators: Combines price momentum with volume data, offering a comprehensive view of market conditions.
How to Use
Setup: Apply the indicator to any chart in a trading platform that supports Pine Script (e.g., TradingView). Adjust the input parameters as needed to match your trading strategy and the asset's volatility.
Reading the Indicator:
WaveTrend Crossovers: Look for blue circles indicating a bullish crossover of the WaveTrend lines (wt1 crosses above wt2) and fuchsia circles for a bearish crossover (wt1 crosses below wt2). These points signal potential reversal opportunities.
Squeeze Momentum (SQZMOM): Green triangles at the bottom indicate a "Squeeze On" condition, suggesting market consolidation and potential for a breakout. Red triangles at the top signal a "Squeeze Off" condition, indicating the end of the squeeze and the start of a momentum phase.
VWAP: The price position relative to the VWAP line helps identify the overall market trend. Prices above VWAP may indicate bullish conditions, while prices below VWAP suggest bearish conditions.
Example Scenario for Going Long
Imagine the asset's price has been consolidating, and you observe a green triangle ("Squeeze On") at the bottom of the chart, indicating a potential breakout. Shortly after, a blue circle appears, signaling a bullish crossover in the WaveTrend Oscillator. If this crossover occurs above the VWAP line, it strengthens the signal for a long position. Traders might enter a long trade at this point, setting a stop loss below the recent low and a take profit at a previous resistance level or using a risk-reward ratio that suits their strategy.
This custom indicator integrates three key components:
Squeeze
Features
Visual Cues: Utilizes color-coded histograms, circles, and triangles to provide clear visual signals for trading opportunities.
Customizable Parameters: Allows traders to adjust input values for the WaveTrend Oscillator and Squeeze Momentum Indicator to fit various trading styles and timeframes.
Dynamic Indicators: Combines price momentum with volume data, offering a comprehensive view of market conditions.
How to Use
Setup: Apply the indicator to any chart in a trading platform that supports Pine Script (e.g., TradingView). Adjust the input parameters as needed to match your trading strategy and the asset's volatility.
Reading the Indicator:
WaveTrend Crossovers: Look for blue circles indicating a bullish crossover of the WaveTrend lines (wt1 crosses above wt2) and fuchsia circles for a bearish crossover (wt1 crosses below wt2). These points signal potential reversal opportunities.
Squeeze Momentum (SQZMOM): Green triangles at the bottom indicate a "Squeeze On" condition, suggesting market consolidation and potential for a breakout. Red triangles at the top signal a "Squeeze Off" condition, indicating the end of the squeeze and the start of a momentum phase.
VWAP: The price position relative to the VWAP line helps identify the overall market trend. Prices above VWAP may indicate bullish conditions, while prices below VWAP suggest bearish conditions.
Example Scenario for Going Long
Imagine the asset's price has been consolidating, and you observe a green triangle ("Squeeze On") at the bottom of the chart, indicating a potential breakout. Shortly after, a blue circle appears, signaling a bullish crossover in the WaveTrend Oscillator. If this crossover occurs above the VWAP line, it strengthens the signal for a long position. Traders might enter a long trade at this point, setting a stop loss below the recent low and a take profit at a previous resistance level or using a risk-reward ratio that suits their strategy.