#Squeeze momentum indicator python software#

The squeeze will be regarded to have “fired” if the Bollinger Bands expand and push back past the Keltner Channel, and the dots become GREEN. The red dots of the TTM Squeeze indicator are going to cross the zero line during this period of market tightening. Squeezing takes place when Bollinger Bands (blue in the above image) move inside the Keltner Channel (red in above). The first two indicators are Bollinger Bands and Keltner Channels, which set off the corresponding colors. The Squeeze indicator is made up of three elements. If we can predict when the market will be particularly agitated, we can prepare ourselves to gain from a potentially big move in one direction. The TTM Squeeze is based on the assumption that lower prices eventually translate to higher prices. It performs best when combined with other indicators and trading tools. The TTM squeeze gives traders crucial information, but nothing is always 100% definite in trading. This TTM squeeze histogram fluctuates around the zero line where a growing momentum above the zero line indicates a possibility to buy long while decreasing momentum below the zero line suggests a shorting possibility. The red dot indicates that the squeeze is on, while the green dot indicates that the squeeze is off.Ī momentum oscillator is also used by the TTM Squeeze indicator to highlight the expected direction of movement when the squeeze fires. The squeeze’s on/off state is shown by tiny dots on the indicator’s zero line. When the Bollinger bands expand and return outside of the Keltner channel, the squeeze is said to have “fired” – volatility increases and prices may break out of that compact trading range in a specific direction. The term squeeze describes this situation. When the Bollinger bands are completely contained within the Keltner channels, the indicator shows a period of extremely low volatility. The indicator’s volatility component gauges price compression by applying Keltner Channels and Bollinger Bands. The TTM Squeeze indicator is a volatility and momentum indicator developed by John Carter that capitalizes on the price’s tendency to change strongly after consolidating in a compact trading range. There are numerous methods to use the TTM Squeeze Indicator in your trading, and we’ll go over a couple of them below, but first, an explanation of the indicator itself! What is the TTM Squeeze Indicator?

“In short, it’s my favorite,” Carter remarked. TTM indicator not only pinpoints the moment when you can expect a “greater than expected move,” but it also performs well and compliments many other indicators and technical tools.

#Squeeze momentum indicator python software#

Many well-known charting software platforms currently use it. John Carter of Trade the Markets (now Simpler Trading) developed the TTM Squeeze Indicator. It can assist you in making trading judgments and avoiding purchasing a sinking stock. It is a popular haven for investors that uses zero line and momentum indicators to indicate changes in stock price over time. The TTM Squeeze indicator aids in determining the trend earlier. Markets are always going higher or lower-however, a third state known as consolidation denotes the start of a new trend. What Do the Colors on the TTM Squeeze Mean?.