Adaptive Squeeze Momentum (Zeiierman)

1 ส.ค. 2023

█ Overview
Adaptive Squeeze Momentum (Zeiierman) is a hybrid oscillator that models the market’s transition between trend-efficient and inefficient (choppy or reversal-prone) regimes. It fuses a price efficiency framework, volatility-adaptive responsiveness, and a bounded directional trend score, then intelligently blends them through a dynamic transition band to emphasize either smooth, directional structure or spiky inefficiency.

Unlike traditional momentum tools, it does not simply measure speed or volatility. It measures how efficiently the price is moving. This multidimensional approach allows it to identify when markets are compressed and ready to expand, or stretched and ready to revert.

In essence, Adaptive Squeeze Momentum (Zeiierman) gives traders a deep structural perspective of efficiency, momentum, and compression energy, helping to expose hidden squeezes, early reversals, and trend continuations with remarkable accuracy.

⚪ Why This One Is Unique
Adaptive Squeeze Momentum (Zeiierman) stands out because it doesn’t rely on static momentum or volatility measures alone. It merges price efficiency, volatility adaptivity, and trend structure into one cohesive system capable of detecting:

• Early squeeze build-ups and directional releases
  
• Reversals emerging from inefficiency spikes
  
• Shifts between clean trends and noisy, unstable ranges
  
• Adaptive behavior across changing volatility conditions
  

In essence, it acts as a self-adjusting market intelligence tool, revealing when the price is efficient, exhausted, or preparing for significant expansion.

█ Main Features

⚪ Adaptive Squeeze Momentum Oscillator
The Adaptive Squeeze Momentum (Zeiierman) captures how price structure transitions between compression, expansion, and inefficiency. It merges a volatility-adaptive momentum engine with an efficiency-aware structure filter, creating a responsive oscillator that reflects not just how fast the market moves, but how efficiently it moves.

• Adaptive Momentum: Reacts dynamically to changing volatility regimes
  
• Efficiency Awareness: Distinguishes stable, directional flow from unstable or noisy price action
  
• Volatility Squeeze Detection: Identifies buildup (compression) and breakout (release) conditions
  
• Directional Context: Shows momentum alignment, exhaustion, or imbalance through color-coded histograms
  

This hybrid model provides a multidimensional view of trend quality, squeeze pressure, and inefficiency, ideal for precision-based trend following and structural reversal recognition.

⚪ Understanding the Squeeze
A squeeze occurs when volatility contracts, prices compress, and market energy builds, much like a coiled spring preparing to release. Once volatility expands, that stored energy transforms into directional movement, often marking the beginning of a significant breakout or new trend phase.

Traditional squeeze indicators focus only on volatility contraction. Adaptive Squeeze Momentum (Zeiierman) goes further by incorporating efficiency analysis to evaluate how organized or chaotic the buildup is. This reveals not only when a squeeze may fire but also whether the ensuing release is likely to be sustainable or structurally weak.

Visual Interpretation:

• Lighter Dots: Represent low-volatility compression, energy building within an efficient or balanced structure.
  
• Yellow Dots: Mark volatility release, the expansion phase where momentum accelerates.
  

⚪ Inefficiency Columns

Efficient Price Action
Efficient moves are clean, directional, and purposeful. Price advances with minimal back-and-forth noise, revealing strong conviction and structural alignment. In the indicator, these appear as smooth, non-blue histogram columns. Such periods indicate organized, high-probability momentum where breakouts, trends, and continuations are supported by efficient order flow.


Inefficient Price Action
Inefficient moves are noisy, erratic, and spiky, showing that price is fighting its own structure. Liquidity is thin, reactions are emotional, and momentum lacks balance. In the oscillator, inefficiency is displayed through blue columns, path-break spikes, or OB/OS inefficiency crosses (green/red). These elements act as early warnings of structural instability, suggesting the market may be overextended, losing organization, or entering a mean-reversion or reversal phase.


█ How to Use

⚪ Trend Following
When oscillator bars are above or below zero and growing in color intensity, momentum is expanding, confirming active, efficient trends. When colors fade, momentum is decelerating, signaling potential exhaustion or consolidation.

Interpretation:

• Sustained smooth growth above zero indicates strong, efficient bullish momentum.
  
• Sustained smooth growth below zero indicates efficient bearish continuation.
  
• Color fading or a zero-line cross suggests trend fatigue or rotation.
  

Tip: Confirm trend continuation when yellow squeeze-release dots appear in the same direction. They often precede sustained breakouts following compression.

⚪ Inefficiency Reversals or Breakouts
Adaptive Squeeze Momentum (Zeiierman) excels at detecting instability within active trends, highlighting when moves lose internal efficiency and become unsustainable. When bars change color, outbreak columns appear, or Overbought/Oversold Inefficiency Crosses (green/red) appear, the structure is shifting toward potential reversal or exhaustion.

Blue Inefficiency Columns:

• Above Zero: Indicates inefficient buying pressure where markets push higher impulsively or emotionally. Often signals an overstretched or unstable rally prone to short-term corrections or FOMO-driven peaks.
  

Below Zero: Reflects inefficient selling pressure where panic-driven or disorderly sell-offs often precede exhaustion and recovery phases.


Main Oscillator Inefficiency:

Spiky Column Above Zero
When the main oscillator suddenly surges upward and prints a tall, spiky column above the zero line without turning blue, it signals an inefficient and overextended push to the upside. This type of move breaks the oscillator’s usual smooth rhythm, showing that buyers are becoming overaggressive or emotional, often driven by FOMO or reactive momentum chasing.

Even though the column remains green, the abrupt path break reveals that the move is losing internal structure and may be unsustainable. Such inefficient upward bursts often indicate upside exhaustion or an overshoot, where the market temporarily loses control.

From here, two scenarios can unfold:

• A sustained breakout if structure confirms (for example, a valid squeeze release or strong volume support).
  
• A snapback or reversal if follow-through fails on the next bars and the oscillator begins to fade (growth → fall).
  

Spiky Column Below Zero
When the oscillator sharply dives and prints a tall, spiky column below the zero line without turning blue, it reflects an inefficient and emotional push to the downside. This behavior typically emerges during panic-driven selling, where traders aggressively dump positions, breaking the oscillator’s normal rhythm.

Even though the color remains red, this kind of path-break spike shows that the market has become disordered or overstretched. These inefficient downward thrusts often suggest bear exhaustion, capitulation, or a temporary overshoot below fair structure.

From this point, two potential outcomes can occur:

• A sustained breakdown if the move is supported by strong volume or new structural lows.
  
• A rebound or mean reversion occurs when momentum fails to extend, indicating that selling pressure has burned out.
  

Setting Tip: To focus purely on the oscillator’s structural peaks, set Inefficiency Detection and Inefficiency Duration to identical values, then adjust Inefficiency Price Peaks to control sensitivity. Use lower values for crisp detection and higher values for smoother blending.

Overbought and Oversold Inefficiency Signals

• Green Overbought Cross: Signals that buyers are driving the market too aggressively, often from emotional extension or FOMO. This imbalance typically leads to short-term pauses, pullbacks, or corrections.
  

• Red Oversold Cross: Signals panic-driven or emotionally imbalanced selling, marking structural exhaustion. Often precedes rebounds or base formations as volatility normalizes.
  

Interpretation: Both crosses identify where momentum is inefficient rather than simply overbought or oversold, helping detect exhaustion before conventional oscillators do.

⚪ Squeeze Builds and Releases (Volatility Expansion)
The squeeze system highlights volatility cycles when the market compresses, builds energy, and releases it through expansion.

• Lighter Dots: Compression, where volatility contracts, structure tightens, and energy builds.
  
• Yellow Dots: Release, where volatility expands, triggering directional movement.
  

Interpretation: Light dots signal potential breakout setups. When followed by a yellow dot and an aligned oscillator direction, they confirm momentum ignition —the moment the market transitions from equilibrium to expansion.

█ How It Works

⚪ Inefficiency Logic
The indicator evaluates how efficiently the price progresses relative to internal volatility. When market flow loses directional clarity, it transitions into an inefficiency state, represented by blue columns or sudden outbreaks within the oscillator. These moments reveal when the underlying structure becomes unstable or overly reactive, often preceding reversals or false momentum bursts.

• Calculation: Applies an adaptive efficiency model that compares directional movement to internal dispersion and classifies it within a controlled stability band. A dual-threshold hysteresis with smooth interpolation ensures stable transitions between efficient (trend) and inefficient (spike) phases.
  

⚪ Directional Tendency Core
The directional tendency component models the underlying slope of market intent, expressing the balance between structured progression and reactive drift. It transforms directional bias into a bounded, volatility-normalized range that remains consistent across instruments and timeframes.

• Calculation: Constructs a normalized directional field derived from trend displacement over an adaptive window, filtered through a nonlinear bounding transform and dynamic smoothing to control lag and oscillation.
  

⚪ Squeeze Engine
The squeeze system isolates compression and release cycles, the rhythmic build-up and discharge of volatility. Compression phases represent equilibrium and contraction, while release phases signify volatility expansion and directional acceleration.

• Calculation: Integrates a volatility-adjusted energy model with directional gating. Compression forms during sustained contraction, while release occurs as volatility and momentum expand.
  

⚪ OB/OS Inefficiency Extremes
The OB/OS inefficiency system detects imbalanced extremes in order flow, when price pushes too far in one direction without structural support. These regions often precede exhaustion or rapid mean reversion.

• Calculation: Generates an efficiency-weighted propagation field that identifies directional overextension. Threshold analysis and adaptive state classification determine overbought (green) and oversold (red) inefficiency zones.
  

⚪ Final Oscillator Composition
The final oscillator is an adaptive blend of inefficiency, directional tendency, and volatility state. It continuously morphs between spike-dominant and trend-dominant behavior based on the evolving efficiency environment. This produces a responsive structural map that visualizes the interplay between market stability, momentum, and compression energy.

• Calculation: Combines the signed inefficiency signal and the bounded trend vector through a soft-weighted blending function governed by the efficiency band.
  

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Disclaimer

The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

7 มี.ค. 2024

เอกสารเผยแพร่

Squeeze Breakout Added

7 มี.ค. 2024

เอกสารเผยแพร่

Color Fix

27 ต.ค.

เอกสารเผยแพร่

The new Reversal Squeeze update combines Inefficiency Logic, Squeeze Detection, and Momentum Confirmation into one adaptive framework. It identifies when the market becomes inefficient, compresses volatility, and then transitions into explosive trend moves.

The indicator now features Inefficiency Peaks, unique moments when price movement becomes unstable and often marks high-probability reversal zones. Together with a dynamic Oscillator, real-time Squeeze Momentum tracking, and a full alert suite for bias flips, squeezes, reversals, and trend expansions, this version gives traders precise confirmation of when inefficiency turns into directional momentum or full reversals.

28 ต.ค.

เอกสารเผยแพร่

• Added overbought and oversold inefficiency detection.
• Refined squeeze parameters for improved and easier identification of build-up periods.

3 วันที่ผ่านมา

เอกสารเผยแพร่

Minor fix for performance improvements