Squeeze Vector Regression - SciQua.com

📊 Squeeze Vector Regression (SVR) — SciQua.com
A precision breakout-momentum analysis tool for adaptable trading strategies (Invite-Only)
https://sciqua.com

🔍 What Is the SVR Indicator?
Description:
Squeeze Vector Regression (SVR) is a proprietary trading indicator that detects low-volatility “squeeze” conditions and anticipates breakouts using a regression-based momentum engine. It is designed to help traders identify high-probability moments when markets are transitioning from compression to expansion, and more importantly, forecast the likely direction of the move.

This tool builds on classic concepts like the Bollinger Band/Keltner Channel squeeze but introduces a novel approach: vector-based momentum regression, paired with adaptive angle normalization and dynamically colored histograms. The result is a highly visual signal set that not only marks when a squeeze is building or releasing but also uses directional cues to aid in decision-making.

The Squeeze Vector Regression (SVR) is a powerful tool that detects volatility squeezes and helps gauge breakout momentum. It blends:

• Volatility analysis using Bollinger Bands (BB) and Keltner Channels (KC)
• Momentum slope estimation using regression angle analysis
• Dynamic visuals: background gradients and color-coded momentum lines
• Custom thresholds and lookbacks for fine-tuned strategy fit

🔄 What Is a Squeeze?
A squeeze forms when Bollinger Bands (BB) are fully contained within Keltner Channels (KC).

• Squeeze On: BB inside KC → Low volatility / compression phase
  
• Squeeze Off: BB breaks KC → Breakout begins
  

This often precedes explosive moves in price action. SVR adds visual and statistical strength mapping to this condition.

📐 Momentum Vector: Angle-Based Regression
SVR calculates a regression slope angle from price relative to:

• VWMA
  
• ATR or Range zones (adjustable)
  
• Peak/valley structures
  

The angle is displayed as a colored momentum line:

• [color=red]Red[/color] = Bearish slope (angle < 0)
  
• [color=green]Green[/color] = Bullish slope (angle > 0)
  
• Color intensity = slope strength
  

🎛️ Inputs Explained

Bollinger Band (BB) Parameters

• BB Length: Period for calculating the bands
  
• BB StdDev: Width scaling multiplier
  
• BB MA Type: SMA, EMA, VWMA, etc.
  
• BB Source: Default = close, customizable
  

Keltner Channel (KC) Parameters

• KC Length: ATR period for channel size
  
• KC Multiplier: Width multiplier
  
• KC Source: Price input used
  
• Use Exponential MA: Optional smoothing
  

Squeeze Logic & Visualization

• Show Squeeze ON/OFF Background: Toggle colored zones
  
• Minimum Squeeze ON/OFF Gap Strength: Filters weak signals
  
• Lookback for Breakout Scaling: Makes breakout intensity relative to historical max
  
• Enable Background Gradient: Toggle visuals
  
• Set custom gradient colors and opacity

Momentum & Angle Settings

• Momentum Length: Regression window
  
• Angle Normalization: Fixed or adaptive
  
• Color gradient range: From bearish red to bullish green
  

🧠 How to Use SVR Effectively

Scenario: Swing trader identifying momentum breakouts on 4-hour chart.

1. Wait for yellow background (Squeeze ON) to persist → Consolidation phase.
   
2. Look for orange background shift (Squeeze OFF) → Volatility breakout signal.
   
3. Check if momentum line shifts from red to green → Confirms bullish vector.
   
4. If confirmed, enter long on breakout candle or retrace with tight stop.
   
5. Monitor momentum gradient: Fading green = momentum loss, prepare to exit.
   

🔧 Configure for Strategy Styles

Breakout Traders:

• Raise Squeeze OFF Threshold to filter noise
  
• Use momentum line for directional confirmation
  
• Look for large orange backgrounds and steep green slopes
  

Mean Reversion Traders:

• Lower Squeeze ON Threshold to catch earlier compression
  
• Watch for divergence between price and regression slope
  
• Exit when Squeeze OFF triggers
  

Scalpers:

• Use lower BB/KC/Momentum lengths
  
• Switch to EMA/VWMA for faster response
  
• Focus on short timeframes with adaptive normalization
  

🧪 Visual Legend

• 🟡 Yellow background: Squeeze ON
  
• 🟠 Orange background: Squeeze OFF (breakout)
  
• Red momentum line: Bearish vector slope
  
• Green momentum line: Bullish vector slope
  
• Gradient intensity: Reflects strength of squeeze/breakout
  

📘 Tips & Notes

• Does not repaint after candle close
  
• Works across all markets: stocks, crypto, forex
• Effective in all timeframes: scalping to swing
• Visual-only — use alerts or integrate with other tools for automation
  

🧩 Summary Table
Features:

• BB/KC Overlap: Detects compression and breakout zones
  
• Momentum Line: Reveals directional price pressure
  
• Background Colors: Visualize squeeze phases and breakout strength
  
• Thresholds & Scaling: Custom control for signal sensitivity
  
• Normalization: Contextualizes breakout strength historically