What Is the TTM Squeeze Indicator?
The volatility and momentum indicator TTM Squeeze was developed by John Carter of Simpler Trading. It takes advantage of the fact that prices tend to break out forcefully after consolidating in a narrow trading range.
The TTM Squeeze indicator’s volatility section tracks contracting prices through Bollinger Bands and Keltner Channels. A period of minimal volatility is indicated if the Bollinger Bands are contained entirely inside the Keltner Channels. The squeeze refers to this tight condition. When the Bollinger Bands re-expand beyond the Keltner Channel, it is stated that the squeeze has “fired,” signaling an increase in volatility and a possible departure from the confined trading range. Squeeze on/off status is shown by little dots on the zero line of the indicator; red dots signal squeeze is on, while green dots show squeeze is off.
The TTM Squeeze indicator is available for TradeStation® and thinkorswim®, two widely-used charting software platforms currently.
How to Read the TTM Squeeze Indicator and How Does the TTM Squeeze Work?
TTM Squeeze Indicator Explained
The TTM Squeeze is predicated on the premise that decreased prices would eventually lead to higher prices. If we can pinpoint when the market is particularly tense, we can position ourselves to benefit from a potentially powerful move in one direction
What Do the Colors Mean on the TTM Squeeze?
Indicators of a squeeze are represented by red and green dots on the zero line. If there is a red dot, it indicates a squeezing situation. If there is no red dot, we are not in a confined space at the moment. When a green dot appears following a string of red dots, the squeeze has been successful.
Using the TTM Squeeze in Trading
There is a wide range of periods compatible with the TTM Squeeze indicator. When trying to confirm a security’s value, many chartists look at data from several different time periods. Squeezes that fire on many time frames at once are more reliable signals than those that fire on just one.With the TTM Squeeze, traders may rededicate themselves to the market and get the self-assurance they need to consistently turn a profit and increase their wealth. Having faith in yourself and your abilities will help you:
Avoid bad trades
Make profitable trades
Optimize returns
Put away your doubts
Enhance market sense
How to Build a Profitable Trading Plan Using the TTM Squeeze?
John Carter’s route to regular profits in trading was revolutionized by the TTM Squeeze indicator. The TTM Squeeze is an important technique for traders who wish to rapidly expand their trading capital.
To put it bluntly, the TTM Squeeze indicator is not a miracle worker. Any kind of trading carries with it some degree of inherent risk. Additionally, you are not expected to “make it big” in the trading world in the manner of some well-known trader who claims to make you a millionaire if you only “be a billionaire” on the internet.
How to Set up TTM Squeeze Indicator
Here is what you simply need to do to set up the TTM_Squeeze to your thinkorswim charts:
Login to your thinkorswim account
Select the studies button
Add study
Then find John F. Carter studies
Select the TTM_Squeeze
Trading the TTM Squeeze Indicator with Divergences
Although the TTM Squeeze indicator is recognized to provide a strong signal as to where price is heading, the best trades are those in which numerous indicators are flashing the same signal.
Using divergence is a strategy that may be applied while trading with the TTM Squeeze indicator. When price and the histogram momentum bars are moving in different directions, this is called a divergence. When price is forming higher highs while the slope of the histogram is forming lower highs above the “zero line,” a bearish divergence exists.
What is the Squeeze Pro Indicator?
The Squeeze Pro Indicator is the upgraded version of TTM Squeeze. Conversely, the TTM Squeeze is a fantastic indicator that can do wonders for traders of any skill level. The premium Squeeze Pro Indicator makes it easy to choose one of three squeeze intensity levels, provides clear entry and exit signals, and anticipates and capitalizes on market rallies. You should upgrade to TTM Squeeze Pro if you’ve outgrown the free version.
The Bottom Line
The TTM Squeeze indicator takes into account both volatility and momentum in order to help traders profit from swings in the security’s volatility. Squeeze dots, which are part of the indicator’s volatility component, point to possible breakouts after tame trading conditions. The momentum histogram shows the most likely path of the breakout and can aid in locating potential exits. Article Source: https://libraryoftrader.net/how-to-use-the-ttm-squeeze-indicator
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