You Can Become MILLIONAIRE With This FREE and POWERFUL Indicator on TradingView [100% Works]

Welcome Back to Another Video!

Welcome back to another video! In today’s discussion, we will be diving into a very powerful indicator that can help you consistently profit in the market. This indicator, known as the TTM Squeeze, was developed by John Carter, a renowned trader and author of a bestselling book on trading. Carter is also the founder of Simpler Trading, formerly known as Trade the Markets, which provides educational materials and a community of traders.

The TTM Squeeze, or simply the Squeeze, is a well-known indicator that has been widely used by traders. In the past, this indicator came with a hefty price tag, but now you can access it for free on the TradingView platform. Let’s take a closer look at how this indicator works and how you can use it to your advantage.

Understanding the TTM Squeeze Indicator

The TTM Squeeze indicator consists of two components: the volatility component and the directional component. The volatility component is represented by small dots in the middle of the indicator, while the directional component is displayed as a histogram that moves above and below zero.

The volatility component is based on two other volatility indicators: Bollinger Bands and Keltner Channels. Bollinger Bands and Keltner Channels are plotted on the chart alongside the TTM Squeeze indicator to provide a better understanding of how it works.

When the Bollinger Bands become tight and completely go inside the Keltner Channels, it indicates low volatility and extreme consolidation in the market. This tight range often leads to breakouts in either direction. In the previous version of the TTM Squeeze, the Bollinger Bands were considered inside the Keltner Channels when they were completely inside the channel with a multiplier of 1.5. Red dots appeared when the Bollinger Bands were inside the Keltner Channels, indicating a squeeze or consolidation phase, while green dots appeared when the Bollinger Bands were outside the Keltner Channels, indicating an increase in volatility.

In the new version of the TTM Squeeze, there are three different levels for the Keltner Channels: 1, 1.5, and 2. The dots in the middle of the indicator change color based on the location of the Bollinger Bands within these Keltner Channels. Orange dots represent high compression or a large squeeze, indicating that one or both of the Bollinger Bands are inside the first Keltner Channel. Red dots represent medium squeeze, indicating that one or both of the Bollinger Bands are inside the Keltner Channel with a multiplier of 1.5. Black dots represent low compression or a low squeeze, indicating that one or both of the Bollinger Bands are inside the Keltner Channel with a multiplier of 2. Finally, green dots represent no squeeze, indicating that one or both of the Bollinger Bands are outside of the third Keltner Channel with a multiplier of 2.

The greater the squeeze, the higher the probability of an explosive price movement. On the other hand, less compression or squeeze means a lower probability of an explosive move and more squeezing can occur in the market.

Using the TTM Squeeze Indicator for Trading

Now that we understand how the TTM Squeeze indicator works, let’s discuss how we can use it for trading. The directional component of the indicator, represented by the histogram, helps us determine the direction of the price movement after the squeeze fires.

When the histogram is above zero and rising, it indicates a bullish movement and an upward price trend. Conversely, when the histogram is below zero and falling, it indicates a bearish movement and a downward price trend. The color of the histogram also provides additional information about the momentum. When the histogram is in light blue, it shows increasing upside momentum, while dark blue indicates decreasing upside momentum. Similarly, when the histogram is red, it shows increasing downside momentum, while yellow indicates weakening downside momentum.

After the squeeze fires and we see a rising histogram above zero, it suggests that the tight range has been broken in an upward move, providing a buying signal. Conversely, when we see a falling histogram below zero after the squeeze fires, it suggests a possibility of a breakout in a downward move, providing a selling signal or an opportunity to take a short position.

According to John Carter, the exit point for long positions is typically placed on the formation of the second dark blue bar, while for short positions, it is placed on the formation of the second yellow bar. However, the exit point may vary depending on your trading strategy and can be determined using other indicators or price action analysis.

It’s important to note that while the TTM Squeeze indicator is a powerful tool, it should not be used as the sole basis for your trading decisions. It is recommended to combine this indicator with other technical analysis tools, as well as fundamental analysis and overall macro factors, to identify the best trading opportunities with minimal risk. Additionally, price action analysis and volume analysis can further enhance your understanding of the nature of the squeeze and the strength of the breakout.

Conclusion

The TTM Squeeze indicator, developed by John Carter, is a valuable tool for traders looking to profit consistently in the market. By combining the volatility and directional components of the indicator, traders can identify periods of consolidation and potential breakouts. However, it is important to use this indicator in conjunction with other tools and aspects of technical analysis to avoid false signals and make informed trading decisions.

Thank you for reading this comprehensive article on the TTM Squeeze indicator. If you have any questions or comments, please feel free to leave them below. Good luck with your trading!

Frequently Asked Questions

1. What is the TTM Squeeze indicator?

The TTM Squeeze indicator is a powerful tool developed by John Carter that helps traders identify periods of consolidation and potential breakouts in the market. It consists of two components: the volatility component, represented by dots, and the directional component, represented by a histogram.

2. How can I access the TTM Squeeze indicator for free?

You can access the TTM Squeeze indicator for free on the TradingView platform. Simply search for “TTM Squeeze” in the indicators section and add the TTM Squeeze Pro indicator, which is available for free.

3. How do I interpret the dots in the TTM Squeeze indicator?

The dots in the TTM Squeeze indicator represent different levels of compression and squeeze in the market. Orange dots indicate high compression, red dots indicate medium squeeze, black dots indicate low compression, and green dots indicate no squeeze.

4. How can I use the TTM Squeeze indicator for trading?

The TTM Squeeze indicator can be used to identify potential buying and selling opportunities. When the squeeze fires and the histogram rises above zero, it suggests a bullish movement and a buying signal. Conversely, when the histogram falls below zero, it suggests a bearish movement and a selling signal or an opportunity to take a short position.

5. Should I rely solely on the TTM Squeeze indicator for my trading decisions?

No, it is not recommended to rely solely on the TTM Squeeze indicator for your trading decisions. It is important to use this indicator in conjunction with other technical analysis tools, as well as fundamental analysis and overall market factors, to make informed trading decisions.