![]() ![]() The bears are losing their strength, and soon the bulls will take control of the market. The dark-red color tells us the market is facing a bullish reversal period.The market is facing a bearish trend, and the number of sellers is dominating the market. It tells a trader that bears are gaining control of the market. The bright red color is antagonistic to the light green color.It tells us that bulls are losing their power, and a bearish reversal is awaiting. The dark green color signals that the market is about to take a reversal in the near future.This color tells us that bulls are gaining strength, and the number of buyers is about to take over the market. The light green color indicates the formation of a bullish market trend.This visualization gives a better picture of the market as well as provides more information. I prefer the histogram representation of the squeeze momentum indicator. These black dots turn grey when the Bollinger band forms outside the channel. In the case of the dots, when the Bollinger bands form inside the Keltner channel, the black dots visualize. There are two ways to represent this indicator on a trading chart. SM combines these two indicators to measure the level of volatility and trend change in a trading market. On the other hand, Keltner Channel helps to measure the average true range in a market. It is a decent tool for measuring the volatility in a trading market. As the upper and lower bands are at a significant distance, it means the market is facing a breakout in prices. If the bands are in a squeezing shape and their distance from each other is narrow, it means the prices are not facing an active change. The price usually stays between the upper and lower bands. The Bollinger bands provide information about the lower and higher range of price swings. SM can help in finding the buy/sell signals.Ī squeeze momentum indicator combines two indicators for its working.It can help in finding the entry and exit points.It tells a user when the price consolidates and when the market has a trend.It is capable of signaling a trend reversal of both natures (bullish/bearish).The SM indicator is very effective in a volatile market where price shows strong swings. ![]() It can indicate a price change in a market.The important benefits of this indicator are as follows. It can improve your decision-making with a better market picture regarding price change. This indicator is very helpful in a volatile trading market. To provide information about price rise and drop.ĭespite the main objectives of the SM indicator, it is capable enough to signal a trend reversal and form a trading strategy around it. ![]()
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