TTM Squeeze

What is TTM Squeeze?

The TTM Squeeze is a trading strategy developed by John Carter. It utilizes a combination of Bollinger Bands and Keltner Channels to highlight periods of low volatility (the "squeeze") followed by periods of high volatility, which may provide traders with significant trading opportunities. 🚀

Understanding the Squeeze

• When the Bollinger Bands contract inside the Keltner Channels, this state indicates a low volatility period.
• This contraction suggests that the market is preparing for a significant price movement.
• Once the price breakout occurs as the Bollinger Bands expand beyond the Keltner Channels, the squeeze is said to have released. 📈

Components of the Indicator

• Red and white points represent the squeeze state, with the red indicating that volatility is low.
• The histogram illustrates momentum, helping to gauge the market's strength for potential trades.
• Traders can receive alerts when the squeeze begins or is released, providing critical entry and exit signals.

Trading Strategies Using TTM Squeeze

• Release from Squeeze: Wait for a squeeze lasting at least 3 bars. On the first grey bar following the squeeze, trade in the trend direction.
• Non-Squeeze Periods: When in a non-squeeze, follow the trend as these periods tend to be more consistent and offer clearer signals.
• Higher Timeframe Optimization: Use multiple timeframes together; for instance, if both the 15-minute and 5-minute charts show a squeeze, enter the trade when the 5-minute chart is released. ⚡

Key Parameters

• BB Length: Number of periods for the Bollinger Bands (default is 20).
• BB Multiplier: Defines the width of the bands (default is 2.0).
• KC Length: Number of periods for the Keltner Channels (default is also 20).
• Alerts: Customize alerts for squeeze starts and releases, which can enhance trading discipline and timing.

Conclusion

The TTM Squeeze indicator is a powerful tool for traders seeking to identify market volatility and spot potential trade setups with precision. By focusing on timing and market conditions, traders can improve their strategy execution and overall results. 🎯