EWO Squeeze Indicator V1.1 MT5

The EWO Squeeze Indicator V1.1 for MetaTrader 5 (MT5) is a powerful trading tool designed to identify high-probability trading setups based on momentum shifts and volatility compression. This indicator helps traders spot trade opportunities when the market transitions from a low volatility phase (squeeze) to a high momentum breakout.

Strategy Overview: How the Indicator Takes Trades

The EWO Squeeze Indicator V1.1 follows a systematic approach to trade execution:

1. Identifying the Squeeze Phase

• The indicator detects periods of low volatility when the market is “squeezing.”
• During this phase, price movement is tight, and Bollinger Bands contract.
• A squeeze suggests that a strong breakout is likely to happen soon.

2. Confirmation of Momentum Shift

• The indicator tracks the Elliott Wave Oscillator (EWO) to detect shifts in market momentum.
• As volatility expands, the EWO histogram turns positive (for buy trades) or negative (for sell trades).
• A rising histogram indicates increasing bullish momentum, while a falling histogram signals bearish pressure.

3. Trade Entry Rules

• Buy Signal:

  • The market exits the squeeze phase.
  • EWO turns positive, showing bullish strength.
  • Price closes above key resistance levels.
  • Confirmation from other indicators like moving averages or RSI is recommended.

• Sell Signal:

  • The market exits the squeeze phase.
  • EWO turns negative, showing bearish momentum.
  • Price closes below support levels.
  • Additional confirmation from trend indicators improves accuracy.

4. Stop Loss & Take Profit Strategy

• Stop Loss: Placed below the recent swing low for buy trades and above the swing high for sell trades.
• Take Profit:
  • First TP at 1:1 risk-reward ratio.
  • Second TP at major resistance/support levels or trailing stop based on ATR.

Trading Parameters & Requirements

Final Thoughts

The EWO Squeeze Indicator V1.1 MT5 is ideal for traders who want to capitalize on volatility breakouts. By combining volatility compression with Elliott Wave momentum confirmation, it provides high-accuracy trade signals. However, traders should always use additional risk management tools, such as trailing stops and confirmation indicators, for better trade execution.