TVS

#Overview

The TVS strategy looks for areas of low volatility or ‘squeezes’ and then relies on momentum to identify a breakout. This is intended to help a trader wait for a consolidation phase before entering a market when energy is released.

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How It Works

TVS uses Bollinger Bandwidth as a measure of market compression to define the "squeeze" conditions of low volatility. When the distance between the upper and lower Bollinger Bands contracts below its own average, the indicator flags the market as compressed and color codes candles purple. Once volatility expands and the squeeze ends, TVS toggles on momentum confirmation via RSI: candles light green as bullish momentum is in control and red when bearish momentum takes over. The color system observes strict priority whereby volatility compression overrides all trend signals, with any consideration of direction being subject to the release of the squeeze.

Color Priority
• Deep Purple: Active squeeze (low volatility)
• Green / Red: Squeeze released
  – Green: Bullish
  – Red: Bearish

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Trading Checklist
-Purple candles? → Market is compressing
-Purple ended?→ Breakout phase
-Green or Red? → Direction confirmed
-Near key structure? → Manual validation


Settings and Usage

Timeframes: 15m–Daily
Best Markets: Forex majors, liquid stocks

Inputs:

length

(BB basis),

mult

(band sensitivity)

Risk Notes:

Squeezes can fail and reverse
No built-in stop-loss
News reduces signal reliability


Risk Management is mandatory.