MTF Volatility Squeeze Version 4.0

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Dulcie Davidson
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1 MTF Volatility Squeeze Version 4.0 Description: The Multiple Time Frame Volatility Squeeze (MTFVS) indicator shows when there is a reduction in volatility that usually means that consolidation is occurring. For the purposes of this indicator the volatility squeeze condition exists when the 2 standard deviation Bollinger Band is inside of the Keltner Channel. The indicator will detect a volatility squeeze condition for the current chart and for up to 4 additional larger time frames or tick ranges. The MTFVS indicator works in RadarScreen, the Scanner and the Chart Analysis window for tick, minute, and daily timeframes. Inputs: sqzcolor = The number that will be used to indicate that a volatility squeeze condition exist. The default is yellow. nosqzcolor = The number that will be used to indicate that a volatility squeeze condition does not exist. The default is darkgray. tf2minutes = Timeframe 2 (tf2) minute setting. This is the minute value that will be used to search for a volatility squeeze condition for timeframe 2. This value is used only for minute charts and the value must be larger than the base timeframe of the chart. For example, if the chart has a 15 minute timeframe then this input value must be larger than 15 to be calculated by the indicator. The default is 30 minutes. tf3minutes = Timeframe 3 (tf3) minute setting. This is the minute value that will be used to search for a volatility squeeze condition for timeframe 3. This value is used only for minute charts and the value must be larger than the base timeframe of the chart. For example, if the chart has a 15 minute timeframe then this input value must be larger than 15 to be calculated by the indicator. The default is 60 minutes. Tf4Minutes = Timeframe 4 (tf4) minute setting. This is the minute value that will be used to search for a volatility squeeze condition for timeframe 4. This value is used only for minute charts and the value must be larger than the base timeframe of the chart. For example, if the chart has a 15 minute timeframe then this input value must be larger than 15 to be calculated by the indicator. The default is 120 minutes. tf2ticks = Timeframe 2 (tf2) tick setting. This is the tick value that will be used to search for a volatility squeeze condition for timeframe 2. This value is used only for tick charts and the value must be larger than the base tick setting of the chart. For example, if the chart has a 50 tick timeframe then this input value must be larger than 50 to be calculated by the indicator. The default is 100 ticks. tf3ticks = Timeframe 3 (tf3) tick setting. This is the tick value that will be used to search for a volatility squeeze condition for timeframe 3. This value is used only for tick charts and the value must be larger than the base tick setting of the chart. For example, if the chart has a 50 tick timeframe then this input value must be larger than 50 to be calculated by the indicator. The default is 200 ticks. tf4ticks = Timeframe 4 (tf4) tick setting. This is the tick value that will be used to search for a volatility squeeze condition for timeframe 4. This value is used only for tick charts and the value must be larger 1

2 than the base tick setting of the chart. For example, if the chart has a 50 tick timeframe then this input value must be larger than 50 to be calculated by the indicator. The default is 400 ticks. tf5ticks = Timeframe 5 (tf5) tick setting. This is the tick value that will be used to search for a volatility squeeze condition for timeframe 5. This value is used only for tick charts and the value must be larger than the base tick setting of the chart. For example, if the chart has a 50 tick timeframe then this input value must be larger than 50 to be calculated by the indicator. The default is 800 ticks. Important Notes: The MTFVS indicator will work on tick, minute, and daily charts. MTFVS works in RadarScreen, the Scanner, and the Chart Analysis window. When using a minute chart timeframe 1 will be based on the timeframe of the chart, time frame 2 will use input tf2minutes, time frame 3 will use input tf3minutes, time frame 4 will use input tf4minutes, and time frame 5 will be a daily timeframe When using a tick chart time frame 1 will be based on the tick setting of the chart, time frame 2 will use tf2ticks, time frame 3 will use tf3ticks, time frame 4 will use tf4ticks, and time frame 5 will use tf5ticks. When using a daily chart time frame 1 will be 1 day, time frame 2 will be 2 days, time frame 3 will be 3 days, time frame 4 will be 4 days, and time frame 5 will be weekly. When using a weekly chart time frame 1 will be 1 week, time frame 2 will be 2 weeks, time frame 3 will be 3 weeks, time frame 4 will be monthly, and time frame 5 will be blank. When using a monthly chart time frame 1 will be 1 month, time frame 2 will be 2 months, time frame 3 will be 3 months, time frame 4 will be blank, and time frame 5 will be blank. Uses: Help to determine if there is a possible consolidation condition. MTFVS can be used in RadarScreen to monitor several stocks, ETFs, etc. to see if consolidation condition exists for 1 or more time frames at the same time. MTFVS can be used in the Scanner to see if consolidation condition exists for multiple time frames at the same time. 2

Display: In Chart Analysis Window: The dots at the bottom are the time frame displays. The time frames are displayed in descending order with time frame 1 on top and time frame 5 on bottom.

3 Display: In Chart Analysis Window: The dots at the bottom are the time frame displays. The time frames are displayed in descending order with time frame 1 on top and time frame 5 on bottom. For this daily chart of FSLR in early October 2018 we can see that there is a 1 day volatility squeeze (top row of dots), a 2 day volatility squeeze (second row down), a 3 day volatility squeeze (third row down), and then there is 4 day a volatility squeeze (fourth row down), and there is not a volatility squeeze for the weekly (bottom row). 3

The dots at the bottom are the time frame displays. The time frames are displayed in descending order with time frame 1 on top and time frame 5 on bottom.

4 The dots at the bottom are the time frame displays. The time frames are displayed in descending order with time frame 1 on top and time frame 5 on bottom. For this 15 minute chart of FSLR we can see that there is not a volatility squeeze for the 15 minute time frame (top row of dots), there is a 30 minute volatility squeeze (second row down), there is not a 60 minute volatility squeeze (third row down), there is a 120 minute volatility squeeze (fourth row down), and there is a daily volatility squeeze (bottom row). 4

There are several other columns that are shown with the default installation of the indicator, but they

5 In RadarScreen : In this RadarScreen display we can see the various volatility squeezes that are present on the 15 minute time frame. All active squeezes will be displayed in the Squeezes column. There are several other columns that are shown with the default installation of the indicator, but they are not really useful in the RadarScreen display so I have turned them off by using the Show/Hide Plots option as shown below: 5

6 the Scanner: This scan is setup to find stocks that are at least $20, have at least 1,000,000 shares traded and have at least 1 volatility squeeze active (SqzCnt >= 1) in the 5 time frames that are examined MTFVS indicator. 6

7 This scan is setup to find stocks that have a volatility squeeze for Time Frame 1 (TF1SqzActive>=1). So, in this scan that would be looking for daily volatility squeezes since the Interval is set to Daily. Contact Info: If you have any questions or suggestions I would very much like to hear from you. My is: contact@historicstockdata.com Website: Legal Information: Disclaimer: The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of indicators, is not indicative of future results. All information on our 7

8 website ( and in this document is for educational purposes only and is not intended to give you financial advice. Any statements about income, expressed or implied, does NOT represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. By being on our website or accessing this document, you accept full responsibility for your actions, trades, profit and loss. You also agree to hold or any authorized distributors harmless in any and all ways. The usage of this website and/or document constitutes acceptance of these terms and the user agreement. No Service Guarantee: You understand and agree that and its third party suppliers make no representation, warranty or condition that: (a) the TradeStation indicators and services will be uninterrupted, timely, secure, reliable, accurate or errorfree; (b) the indicators and services will meet your requirements; (c) the services data obtained through the services will meet your expectations, be suitable for any purpose, or be accurate, complete, reliable, current, timely, adequate, or error-free. and its third party suppliers disclaim all liability for the use or interpretation of the services data. Services Data may be delayed, inaccurate or contain errors or omissions, and and its third party suppliers will have no liability with respect thereto. does not endorse nor is responsible for the services data of any third party supplier. The summary is that the TradeStation indicator could malfunction and the data that is provided may contain errors. Commodity Futures Trading Commission (CFTC) Rule 4.41 HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE 8

9 PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. 9

MTF Volatility Squeeze Version 6.0

MTF Volatility Squeeze Version 6.0 Description: The Multiple Time Frame Volatility Squeeze (MTFVS) indicator shows when there is a reduction in volatility that usually means that consolidation is occurring.