[blackcat] L3 Squeeze Dynamics V2

OVERVIEW

L3 Squeeze Dynamics V2 turns the original squeeze study into a complete long and short
signal engine with a position state machine, ATR risk levels and a live dashboard. The
squeeze, momentum, SAR and volume weighted RSI calculation is kept exactly as in V1,
everything around it is rebuilt.

█ CONCEPTS

Squeeze
A Bollinger envelope is compared with a Keltner envelope. Fully inside means compression
and a coming expansion, fully outside means the move already started. The mixed state is
treated as noise and blocked.

Momentum
A linear regression of price against its channel mid range returns a signed value. The
sign is the bias, the slope versus the previous bar is the acceleration.

Confluence
 • Squeeze and momentum: decisive state with momentum accelerating away from zero
 • Parabolic SAR: price on the correct side of the trailing reversal system
 • Volume weighted RSI: volume weighted pressure above or below the center line

Governance
A state machine tracks long, short and flat. Signals fire on their first bar only, a
cooldown suppresses clusters, the opposite condition closes the trade, and same bar
reversals become one combined event.

█ HOW TO USE

1 — Add the script to a standard candlestick chart and keep the defaults first.
2 — Read the dashboard: position, squeeze state, momentum, RSI, SAR bias, entry, target,
  stop and bars in trade.
3 — Act only on bar close confirmation. Alerts default to once per bar close, so they
  never repaint.
4 — Use the ATR levels as the risk frame. They are frozen at entry and do not drift
  while the trade is open.

█ INPUTS

Squeeze Momentum
 • SQUEEZE MOMENTUM INDICATOR: block switch
 • BOLLINGER BANDS LENGTH: default 85
 • BOLLINGER BANDS MULTI-FACTOR: default 2.1
 • KELTNER CHANNEL LENGTH: default 38
 • KELTNER CHANNEL MULTI-FACTOR: default 2.0

Parabolic SAR
 • PARABOLIC SAR: direction filter switch
 • SAR STAR: initial acceleration, default 0.73
 • SAR INC: increment, default 0.5
 • SAR MAX: ceiling, default 0.06

Volume Weighted RSI
 • RSI VOLUME WEIGHTED: bias filter switch
 • RSI LENGTH: default 22
 • RSI CENTER LINE: default 45

Signal Governance
 • POSITION STATE MACHINE: one position at a time
 • COOLDOWN BARS: minimum signal spacing, 0 disables
 • ALLOW SAME-BAR REVERSAL: flip without a flat bar

Risk
 • SHOW ATR TP/SL LEVELS, EXIT ON TP/SL HIT
 • ATR LENGTH, STOP LOSS (xATR), TAKE PROFIT (xATR)

Visuals
 • Labels, bands, SAR crosses, bar coloring, position background, squeeze background
  and the dashboard are all optional.

█ SIGNALS

 • LE and SE: long and short entry
 • RL and RS: re-entry in the direction of the previous closed trade
 • XL and XS: exit by the opposite condition
 • TP and SL: exit by the ATR target or stop
 • XL+SE and XS+LE: same bar reversal, one label carries both sides
 • Arrows are entries, crosses are exits, purple marks are reversals

█ FEATURES

 • Seven alert conditions: long entry, short entry, long exit, short exit, reversal,
  target hit, stop hit
 • Dynamic alert text with ticker, timeframe and price
 • Position background and dashboard for instant state reading
 • Original momentum bar coloring preserved
 • Exits always outrank entries, the state can never contradict itself

█ LIMITATIONS

 • The RSI block needs a real volume feed
 • Long Bollinger and Keltner periods produce few signals on low timeframes
 • Flat ranges release the squeeze repeatedly, the cooldown does the heavy lifting
 • The SAR defaults of the original study are unusual: the increment exceeds the
  ceiling, so the SAR behaves like a fixed step system. Lower the increment for a
  classic response
 • ATR levels are a risk frame, not a promise of a profitable trade

█ NOTES

 • Squeeze momentum descends from the classic study family, credited to its original
  authors
 • Original study and idea: blackcat1402
 • Calculation core unchanged from V1, trade layer rebuilt

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For questions or feedback, please use the comments section below.
Feel free to use and modify, attribution appreciated.