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Momentum squeeze indicator4/9/2024 ![]() See those studies for an explanation of the notation used here. The calculations of this study include calculations of Momentum, an Exponential Moving Average of the Momentum, Bollinger Bands and Keltner Bands. The volatility component of the TTM Squeeze indicator measures price compression using Bollinger Bands and Keltner Channels.This study calculates and displays a Bollinger Squeeze for the data specified by the Input Data Input. If the Bollinger Bands are completely enclosed within the Keltner Channels, that indicates a period of very low volatility. When the Bollinger Bands expand and move back outside of the Keltner Channel, the squeeze is said to have “fired”: volatility increases, and prices are likely to break out of that tight trading range in one direction or the other. The on/off state of the squeeze is shown with small dots on the zero line of the indicator: red dots indicate the squeeze is on, and green dots indicate the squeeze is off. The TTM Squeeze indicator also uses a momentum oscillator to show the expected direction of the move when the squeeze fires. This histogram oscillates around the zero line increasing momentum above the zero line indicates an opportunity to purchase long, while momentum falling below the zero line can indicate a shorting opportunity. The momentum histogram depicts the most likely course of the breakout. Squeeze dots, which are parts of the indicator’s volatility portion, indicate potential breakouts after a period of calm trading. However, given the state of the markets, I only use the TTM Squeeze indicator to go long. The TTM Squeeze indicator considers both volatility and momentum to assist traders in profiting from swings in the volatility of the security. It is defined by a series of lines that are plotted two standard deviations both positively and negatively. You see, we are in a cyclical bull market. A Bollinger Band, as we mentioned above, is a tool used in technical analysis. With the amount of Fed purchases and trillions in savings on the sidelines I am not one to fight market fundamentals. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets. When volatility increases and the Bollinger Bands expand until they are outside of the. useThinkScript is the 1 community of stock market investors using indicators and other tools to power their trading strategies. ![]() My favorite setup is a strong stock that has pulled back and begun consolidating. A buy signal is on the first green dot after one or more red dots. I use this consolidation as a place to enter for a possible further up leg. Liked by more than 70k users, the Squeeze Momentum Indicator is the most popular strategy on the platform and has been widely discussed all over the place. You can read more about my favorite setup here. The TTM Squeeze helps me get confirmation on a possibly great entry on my favorite stocks. I do not use this indicator to short strong stocks that may go higher that is part of my trading strategy in these markets. There is some nuance to how I use the TTM squeeze indicator. For example, as I have already mentioned, I do not use it to go short. The indicator is great at finding good entries on strong stocks. However, as it is not that great for me in timing exits. Nuance and Traps to Avoidįurthermore, the timeframe you choose to use this indicator on is also important. I prefer to use this indicator on the Daily timeframe or above, for example, the weekly or monthly. Try using the Filter Trend function of the Delphic Squeeze indicator to identify these high probability moves. If it is red, the squeeze is tightening indicating. I do have it on my 60minute charts but prefer to use this indicator on the daily for bigger picture trend guidance. ST Squeeze - This indicator is designed to show you how long a stock has been involved in a Squeeze pattern. I personally am not a day trader and would not recommend it on lower timeframes due to the possibility of many false signals. I prefer to use it on larger timeframes to confirm the likelihood of trend continuation on the long side. The TTM Squeeze indicator has both volatility and momentum components. The Squeeze dots signal when volatility conditions are right to buy the momentum histogram indicates the direction (long or short) in which to trade. While volatility levels are low, the squeeze dots will be red. When volatility increases and the Bollinger Bands expand until they are outside of the Keltner Channels, the squeeze has “fired” and the squeeze dots will be green. A buy signal is on the first green dot after one or more red dots. The momentum histogram helps to determine the direction in which to trade.
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