stelaraX - Squeeze Momentum

stelaraX – Squeeze Momentum

stelaraX – Squeeze Momentum is a volatility and momentum indicator designed to detect compression phases and visualize directional pressure during and after the squeeze. It compares Bollinger Bands against a Keltner Channel to identify “squeeze” conditions and uses a linear regression momentum histogram to estimate breakout bias.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The script calculates Bollinger Bands (volatility via standard deviation) and a Keltner Channel (volatility via ATR). A squeeze is active when Bollinger Bands contract fully inside the Keltner Channel. Momentum is estimated using a linear regression of detrended price movement.

Key principles:

* Bollinger Bands define volatility around an SMA using standard deviation
* Keltner Channel defines volatility around an EMA using ATR-based range
* squeeze ON occurs when BB is inside KC (compression)
* squeeze release occurs when BB exits KC after being inside
* momentum is computed via linear regression of price relative to its BB mean
* histogram colors represent direction and acceleration of momentum

This combination helps identify low-volatility buildup and the likely direction of expansion.

Visualization

The script plots:

* a momentum histogram in a separate indicator pane
* four-color momentum logic for bullish/bearish and strengthening/weakening pressure
* squeeze status points on the zero line
* orange points for squeeze ON
* blue points for squeeze OFF
* gray points for no squeeze state
* a zero reference line for directional context
* an alert condition for squeeze release events

This layout makes compression, expansion, and momentum bias easy to interpret at a glance.

Use case

This indicator is intended for:

* identifying volatility compression before breakouts
* timing entries around squeeze release phases
* confirming breakout bias using momentum acceleration
* filtering trades during low-volatility ranging conditions
* supporting volatility-expansion and momentum-based strategies

It works especially well on intraday and swing timeframes and pairs well with structure tools and AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.