This is the MetaTrader version of the very popular Squeeze Momentum indicator. It is based of of John Carter’s TTM Squeeze volatility indicator, as discussed in his book Mastering the Trade.

With this version you can enable notifications when a squeeze is released (push notification, email, or pop-up message).

Grey dotsindicates a squeeze in the current timeframe. Blue dotsindicates that the squeeze is released. Mr. Carter suggests waiting till the first blue dot after a grey dot and taking a position in the direction of the momentum. I.e. the momentum shows red bars go short, or green bars go long.  Exit the position when the momentum changes, indicated by bar color change.

The indicator works best when two or more timeframes are in a squeeze. For example, both 15min and 5min periods are in a squeeze period. Enter a trade in the direction of the movement when 5min period is released from squeeze. 

For more information how to use this indicator best, just search the internet for TTM Squeeze or Squeeze Momentum and you will find a ton of articles.