TTM Squeeze Scanner

Understanding the TTM Squeeze Scanner

• The TTM Squeeze Scanner is a powerful indicator used in trading to identify low volatility periods (squeezes) that are often followed by significant price movements.
• It combines the principles of Bollinger Bands and Keltner Channels to spot these moments of calm before the storm ⚡.
• The concept is grounded in the belief that price tends to "squeeze" before making a larger directional move.

Key Features of the TTM Squeeze Indicator

• Displays a histogram and points that signal the state of the market: red points indicate a squeeze, while grey points suggest a release from that state.
• Traders can customize visual elements, such as colors for improved clarity on their trading charts.
• Offers alerts for squeeze conditions and momentum, helping traders take timely actions.

Trading Strategies with TTM Squeeze

• Wait for a squeeze that lasts for at least 3 bars, indicating low volatility.
• On the first grey histogram bar (release), trade in the direction of the trend; if the indicator is above zero, it's a call; if below, a put.
• Exit when the price enters the next squeeze or when the histogram indicates fading trend momentum.

Advanced Usage Cases

• Combine the TTM Squeeze with other indicators like the ADX for enhanced analysis of market momentum and direction.
• Scalping tactics can be employed to take quick profits when volatility spikes from a squeeze on lower timeframes.
• Utilize multiple timeframes for confirmation; for example, identify squeezes on a 15-minute chart, then execute trades based on 5-minute releases.

Benefits of Using TTM Squeeze Scanner

• Helps in making strategic entries and managing exits effectively, thereby maximizing potential profits.
• Easy to set up and integrate with popular trading platforms like MetaTrader 4 and MetaTrader 5.
• Provides insightful visual representations, making it easier for traders to analyze market conditions 🎯.