Mr.Carter suggests waiting till the first gray after a black cross, and taking a position in the direction of the momentum (for ex., if momentum value is above zero, go long). This signifies low volatility , market preparing itself for an explosive move (up or down). Traders should utilize the TTM Squeeze pointer with further analysis and indicators methodologies, as they should with all indicators.This is a derivative of John Carter’s “TTM Squeeze” volatility indicator, as discussed in his book “Mastering the Trade” (chapter 11).īlack crosses on the midline show that the market just entered a squeeze ( Bollinger Bands are with in Keltner Channel). The motion histogram indicates the breakout’s anticipated direction, which can aid in determining exit spots. After times of low volatility, the indicator’s volatility component (the squeeze dots) predicts potential breakouts. The TTM Squeeze pointer tracks momentum and volatility to identify trade opportunities based on security volatility changes. For example, a squeeze that fires on an hourly and daily chart simultaneously is a stronger signal than one that fires on one period. As a result, many characteristics appear at the same safety in different time frames for validation. The TTM Squeeze pointers apply to a wide range of timeframes. If a squeeze occurs and the bars are blue (increasing and above the zero lines), he sells when two brighter blue bars (above the zero lines and decreasing) appear in succession. For example, when you have two bars of the latest color, Carter suggests selling them. The motion histogram can be utilized to pinpoint specific exit sites as well. Minor points on the zero lines of the pointer indicate whether the squeeze is on or off: red dots show that the congestion is on, and green dots show that the congestion is off. The squeeze is considered to have “fired” when the Bollinger Bands move back and enlarge outdoors of the Keltner Channel prices are probable to break out of that close-fitting trading choice in one path or the other as volatility rises. A SELL order can be made if the general trend is bearish and the histogram is red. A BUY order can be made if the overall trend is bullish and the histogram is green. TTM squeeze indicator you can use as an excellent signal for a pullback. It’s important to note that no indicator is 100% accurate, and traders should always use multiple indicators and conduct proper risk management when making trading decisions.The TTM Squeeze indicator can be used for multiple time frames, such as intraday, daily, and weekly charts.Traders use the TTM Squeeze indicator to identify potential trading opportunities during periods of low volatility and to avoid entering trades during periods of high volatility.The histogram for momentum turns green during the release period, indicating that momentum is also increasing.The histogram for volatility turns red during the release period, indicating that volatility is expanding.When the squeeze is released, the Bollinger Bands expand outside the Keltner Channels, indicating a period of high volatility.The histogram for momentum is gray during the squeeze period, indicating that momentum is also contracting.The histogram for volatility is blue during the squeeze period, indicating that volatility is contracting.The squeeze occurs when the Bollinger Bands are inside the Keltner Channels, indicating a period of low volatility.The TTM Squeeze indicator plots two histograms, one for volatility and one for momentum, and a dotted line representing the squeeze.The indicator is based on Bollinger Bands and Keltner Channels two technical analysis tools used to measure price volatility.The TTM Squeeze indicator is a technical analysis indicator that identifies periods of low volatility in the markets followed by periods of high volatility.At the same time, Squeeze implies a moment when the Keltner Channels entirely encircle Bollinger Bands during extremely low volatility. In the TTM squeeze name, TTM represents an abbreviation from Trade The Market (former John Carter website).
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