Squeeze momentum indicator meaning software#

ATR is the average price range of a stock through a period of certain number of days.

Keltner’s Channels: this calculate the average true range (ATR).

When bands get contracted, this denotes compression of volatility, and when bands expatiate, it shows an expansion of volatility. This expatiate or reduces in relation to the volatility of security price.

Bollinger Bands: it calculates standard deviation.

TTM Squeeze makes use of the following market chart signals: As mentioned earlier, TTM squeeze is a technical analysis indicator used inside the charting software. In order to have a good grasp of why TTM is so efficient and powerful, we would need to dive into the “techy” aspect of this indicator. The TTM Squeeze is no doubt a powerful tool for ideas into market moves because it is a charting signal that has layers of composites.

It shows more accurate timing for options trades.

The indicator aids in forecasting massive moves.

It has a 75% or even better winning rate.

It has proven itself over and over again as a dependable tool because: But then, there exist history and more than a decade worth of Carter’s personal statistics behind how efficiently this indicator performs. This combination might start to look like a whole lot of claims for a single chart indicator. Commitment and confidence will help you to avoid risk, trade to win, do away with negativity and to maximize your profits. The TTM Squeeze is capable of assisting investors to develop a renewed pledge and huge level of confidence to become profitable, by becoming rich steadily. TTM Squeeze serves as a building block indicator to improve trading techniques that do away with risk, target entry and exit points and in turn increases rewards. Carter works daily to put other traders through in cases of bull or bear markets. You can transform a small investment into a huge asset as proven by Carter. Irregardless of where you are as a trader, be it part-timer, new, or even a well-seasoned trader, the TTM Squeeze gives an avenue to help give your trading the right turn around it deserves. Traders who are familiar with the TTM Squeeze are aware that Carter has shown it to deliver 75% of the time. Additionally, if a bar is lower than the previous bar, it will have a darker color (dark blue or dark red), and if a bar happens to be above the previous bar, it will have a lighter color (light blue or light red). When bars are higher than the zero mark, they appear in blue but when beneath the zero mark, they are red. The histogram bars are represented with color codes for easy interpretation and understanding. Whenever momentum is higher than the zero mark and rising (light blue bars), buy long if the histogram is beneath the zero mark and dropping lower (dark red bars) that shows a chance to go short. The momentum histogram helps to decide the direction to trade with. Carter suggests buying on the first green dots after one or additional red dots. Immediately the volatility increases and Bollinger Bands expatiate to the point when they are outside of the keltner Channels, the squeeze has fired and the squeeze dots will turn green. When volatility marks are low, the squeeze will turn red. The momentum histogram shows the direction (long or short) to trade with. The squeeze dots notifies whenever the volatility options are right to buy. The TTM squeez indicator has both volatility and momentum components. The red dot shows the squeeze is on and the green dot shows the squeeze is off. The on/off state of the squeeze is displayed with tiny dots on the zero line of the indicator. As soon as the Bollinger bands extend and goes back outside of the keltner channel, the squeeze is regarded to have “fired.” Volatility becomes more and prices are possibly going to break out of that tight trading range in a particular direction. This condition is referred to as the squeeze. When Bollinger bands are utterly encapsulated inside the keltner channels that shows a time of really low volatility. The volatility factors of the TTM Squeeze indicator calculate price compression through the application of Bollinger bands and Keltner channels. TTM Squeeze is a momentum and volatility indicator that was introduced by John Carter. TTM Squeeze does not only pinpoint moment in time when you can look onward to a “greater than expected move”, but equally works fine and perfectly complements many other trading tools and indicators.

Squeeze momentum indicator meaning software#

It is currently in use by many top and well-known charting software platforms, such as Thinkorswim and TradeStation. Carter developed the TTM Squeeze indicator.

The squeeze strategy has been adopted for trading and has been in use for many years.