// Fahodi Volatility Contraction Strategy
// Generated from stocks.basem.ai
//@version=5
strategy("Fahodi Vol Contraction", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=5)

bbLen = input.int(20, "BB Length")
bbMult = input.float(2.0, "BB Multiplier")
kcLen = input.int(20, "Keltner Length")
kcMult = input.float(1.5, "Keltner Multiplier")
atrLen = input.int(14, "ATR Length")
momentumLen = input.int(12, "Momentum Length")

[bbMid, bbUp, bbLow] = ta.bb(close, bbLen, bbMult)
atr = ta.atr(atrLen)
kcMid = ta.sma(close, kcLen)
kcUp = kcMid + atr * kcMult
kcLow = kcMid - atr * kcMult

sqzOn = bbLow > kcLow and bbUp < kcUp
sqzOff = not sqzOn
mom = ta.linreg(close - ta.sma(close, momentumLen), momentumLen, 0)

// Entry: squeeze fires (was on, now off) with positive momentum
longCondition = sqzOff and sqzOn[1] and mom > 0
shortCondition = sqzOff and sqzOn[1] and mom < 0

if longCondition
    strategy.entry("Sqz Long", strategy.long)
    strategy.exit("Sqz Exit", "Sqz Long", stop=close - atr * 2)

plotshape(sqzOn, style=shape.diamond, location=location.belowbar, color=color.red, size=size.tiny)
plotshape(sqzOff and sqzOn[1], style=shape.triangleup, location=location.belowbar, color=color.green, size=size.small)