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FreeIndicators·ThinkorSwim

Trend Squeeze

Squeeze read filtered by the prevailing trend.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. Name it, click Apply, then OK, and it draws on your chart.

How to Use — WeTradePro Trend Squeeze

A trend filter + volatility squeeze combined into one setup state. Educational, not advice.

What it is (one line)

A two-in-one setup finder: it shows whether price is in an up- or down-trend (vs the 50 EMA) *and* whether volatility is coiled (Bollinger Bands inside Keltner) — the best trades are a squeeze that fires in the trend's direction.

Who it's for & best timeframe

Trader typeHow you use itBest timeframeRecommended setting
Day traderCatch a morning coil firing in the intraday trend direction5-min – 15-mintrendLength 50, bb 20
Swing traderBest fit — daily squeeze firing with the 50 EMA trendDailytrendLength 50, alertOnFire yes
Position traderWeekly squeeze in a weekly uptrend = start of a major moveWeeklytrendLength 50

Best overall: the daily chart — a coil firing in the direction of the 50 EMA is the highest-odds swing setup.

What you see (price panel)

  • Thick 50 EMA, colored green (price above = uptrend) / red (price below = downtrend).
  • Gray Bollinger Bands around price.
  • Yellow dots on the basis line = the squeeze is ON (volatility coiled).
  • Cyan up / magenta down arrow = the squeeze fired in the trend's direction.
  • Labels: TREND: UP/DOWN, SQUEEZE: ON (N bars coiled) / OFF, and a SETUP: line confirming the bias.

How to trade it (the core play)

  1. Find the alignment. You want TREND: UP and SQUEEZE: ON (long bias) — or the down-trend equivalent for shorts.
  2. Wait — don't chase the coil. Yellow dots mean energy is building; the entry is the *fire*.
  3. Enter on the fire arrow in the trend's direction (cyan = long, magenta = short). A fire *against* the trend is lower quality — skip or size down.
  4. Stop below the coil's low (long) / above its high (short).
  5. Hold the expansion. The longer the coil (N bars coiled), the bigger the typical move. Trail your stop; don't bail on the first green bar.

Settings (inputs)

  • trendLength (50) — the EMA that defines trend bias.
  • bbLength (20), bbDev (2.0) — Bollinger Band settings.
  • kcMult (1.5) — Keltner width; tighter = fewer, higher-quality squeezes.
  • alertOnFire (no) — set yes for a sound the bar the squeeze fires.

Best on

  • Liquid, trending stocks, ETFs, and futures. Shines on high-beta leaders (NVDA, AVGO, TSLA, SMCI) and index ETFs (SPY/QQQ).

Common mistakes

  • Taking a fire against the trend — a squeeze firing while price is below the 50 EMA is a lower-odds long.
  • Entering during the coil (yellow dots) instead of waiting for the fire arrow.
  • Bailing on the first bar of the expansion — the whole edge is holding the move.

Video script outline (for your WeTradePro tutorial)

  1. Hook: "Combine trend and volatility into one setup that tells you when AND which way."
  2. The trend filter: price vs the 50 EMA, colored green/red.
  3. The squeeze: Bollinger Bands inside Keltner = coiled spring (yellow dots).
  4. The magic combo: a coil firing IN the trend direction.
  5. The play: wait for the fire arrow, enter with the trend, set your stop at the coil.
  6. The hold: longer coil = bigger move; trail, don't bail.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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