TTM Squeeze Indicator
by Trader Rich
I don’t know how many of you are familiar with the Trade the Markets Squeeze indicator but it is designed to take advantage of the quiet periods in the market when volatility has decreased, and the market is building up energy for its next major move higher or lower. The decreased volatility and quiet period are when the Bollinger Bands are "squeezed" inside of the Keltner Channels. The setup is triggered when the Bollinger Bands shoot back outside of the Keltner Channel. Depending on the momentum direction, the play can be short or long.
This indicator is used by John Carter and was created by his trading partner Hubert Senters. I really like this indicator and find that during trending markets it works quite well. The caveat is that it isn’t free. It can be bought on the tradethemarkets website for around $500. The great thing is I just wrote the indicator myself over the last 2 hours and am currently using it on my charts. It was easier than I thought. I looked at previous videos from Carter and Senters to compare their Squeeze indicator to mine and they are very close. As far as momentum is concerned, they use a combination of ATR, Momentum, a Linear Regression Plot, and moving averages. Mine only uses Momentum and MACD at the moment until I kind find out how to combine indicators to represent momentum.
Here is their Squeeze indicator:
Here is mine:
These are not the same charts but you get the idea. The red dots indicate that the Bollinger bands are inside the Keltner channels and all is quiet. The next green dot after a red is when you go short or long depending on the momentum.
You can read more here: Volatility Squeeze Play
The Forex Project Squeeze isn’t perfect but I like what I see so far. If anyone is greatly interested in this indicator or have ideas on how to enhance it, let me know. If you use esignal and you want to try it, it’s free.
THIS INDICATOR HASN’T BEEN MAINTAINED SINCE 2006. USE AT YOUR OWN RISK. IT’S ONLY AVAILABLE FOR ESIGNAL DON’T ASK FOR IT FOR ANY OTHER TRADING PLATFORM. YOU CAN DOWNLOAD IT AT: