SPX Direction Squeeze Trigger

What this indicator does

This script is a squeeze-style detector + momentum histogram:

Squeeze dots (at 0 line) show whether price is in compression (Bollinger Bands inside Keltner Channels).

Momentum histogram shows whether momentum is bullish/bearish and strengthening/weakening.

Optional alerts fire when a squeeze starts and when it fires (release).

2) Settings you can change (and what they mean)

A) “Squeeze Length” (default 20)

Controls the lookback period for bands, channels, and momentum.

Shorter = more signals, noisier.

Longer = fewer signals, smoother.

B) Bollinger Band STD Multiplier (default 2.0)

Higher = wider Bollinger Bands = fewer squeeze conditions.

Lower = tighter bands = more squeeze conditions.

C) Keltner Channels (#1, #2, #3)

These are 3 KC widths:

#1 = tightest

#2 = medium

#3 = widest

They affect how strict the “compression” is.

D) Alerts toggles

Alert Price Action Squeeze = enables “Squeeze Started”

Alert Squeeze Firing = enables “Squeeze Fired”

3) How to read the indicator

A) Squeeze dots on the zero line

The dot color tells you compression level:

Green dot = No squeeze (price is not compressed)

Black dot = Low compression

Red dot = Mid compression

Orange dot = High compression

General idea:

Black/Red/Orange = energy “building”

When it flips back to Green, the squeeze is considered “released / fired”

B) Momentum histogram (bars)

Above 0 = bullish momentum bias

Below 0 = bearish momentum bias

Color logic:

Aqua = momentum is positive and increasing

Blue = momentum is positive but decreasing

Red = momentum is negative and getting more negative

Yellow = momentum is negative but improving (less negative)

4) Basic trading workflow (practical)

Use it like a “setup → trigger → direction” tool.

Step 1: Wait for compression

Look for dots turning Black → Red → Orange (increasing compression).

Step 2: Prepare for release

While dots are compressed, watch the momentum histogram:

If histogram is mostly above 0 and turning aqua, bias is bullish.

If histogram is mostly below 0 and turning red, bias is bearish.

Step 3: Act on the “fire”

When dots flip to Green (release), you look to take the move in the direction suggested by momentum.

Bullish idea: squeeze releases + momentum strengthening upward

Bearish idea: squeeze releases + momentum strengthening downward

Tip: Many traders also require a price trigger (break of recent high/low, break of a range, etc.). This script doesn’t do the price trigger, it does the squeeze + momentum.

5) Alerts setup (important)

Your code uses alert("..."), so you must create an alert that listens to this indicator.

On the chart, click Alerts (clock icon) → Create Alert

In Condition, choose: SPX Direction Squeeze Trigger (this script)

For “Alert actions”, choose popup/webhook/email as needed

Set Options:

Typically: Once Per Bar Close (recommended to avoid spam)

Create it.

What alerts mean

“Squeeze Started”

Means the prior bar was green (no squeeze) and now you entered compression.

“Squeeze Fired”

Means the prior bar was compression and now you are green (no squeeze) again (release).

6) Best timeframes (quick guidance)

For SPX/SPY/ES:

5m–15m: more signals, good for intraday

1h–4h: cleaner swings

Daily: longer setups, fewer but stronger signals