![]() The TTM denotes this period as red dots on the zero line. ![]() In essence, the Bollinger band moves right within the Keltner channel when there is low volatility in the market. The market’s price volatility is analyzed using two other indicators: the Bollinger bands and the Keltner channel. So, how does the TTM squeeze work? Well, basically, the TTM squeeze indicator measures both volatility and momentum to identify trading opportunities where changes in these market attributes occur. Many traders particularly use the TTM squeeze indicator to identify a scenario of short-squeeze, which occurs when an asset is heavily shorted, followed by a sharp increase in price when market participants buy the asset at the bottom.įor those who are keen to learn about this phenomenon, we suggest reading about the infamous GameStop stock short-squeeze story. It can be used as another indicator to find areas where the price might reverse.Ī key point to remember is that since the TTM squeeze indicator combines three different tools – Bollinger Bands, Keltner Channels, and Momentum Oscillators – it is considered among the most effective trading tools and indicators. On the other hand, a green dot or a series of green dots implies that the market is not in a squeeze condition, and the existing trend is likely to continue.Īdditionally, the histogram bar (usually displayed in dark blue) presents the momentum around a central axis, the zero line. Once a green dot appears following a series of red dots, a scenario of firing a squeeze is about to happen, and the price is likely to rise sharply. When there’s a squeeze condition in the market, a red dot is displayed (or a series of red dots), and a breakout is likely to occur. Technically, the TTM Squeeze indicator is a sub-chart indicator with red and green dots appearing along the zero line. When using the TTM Squeeze indicator, the trick is to know when a market begins to trend following a period at which the market stays inside a range-bound region. The TTM Squeeze momentum indicator helps traders identify levels where price action starts to race upward or downward, breaking out of a previously held sideways movement. TTM Squeeze Indicator Trading Strategy Tutorial.How to Use The TTM Squeeze Indicator in Trading?.How Does the TTM Squeeze Indicator Work?. CrossAlert –Turns on or off the alert for when momentum crosses the zero line. SqueezeAlert –Turns on or off the Squeeze audio alert. ![]() HistblwZeroRiseColor–Sets the color of histogram bars when below zero momentum is increasing. HistblwZeroFallColor–Sets the color of histogram bars when below zero momentum is decreasing. HistabvZeroDwnColor–Sets the color of histogram bars when above zero momentum is decreasing. HistabvZeroUpColor–Sets the color of histogram bars when above zero momentum is increasing. AlertColor–Sets the dot color when squeeze settings are no longer met and squeeze has fired. NormalColor–Sets the dot color when squeeze settings are met. AlertLine–Leave set to default value of 1. nBB–Sets standard deviation of the Bollinger Bands default is 2. ![]() nK–Sets the offset of the Keltner Channel default is 1.5. ![]() Length–Number of bars used in the indicator calculation default is 20. SymbolType–Futures=1, Stocks=2, Forex=3. Price –Sets what bar price to calculate indicator based on default is close. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |