Credits: -> John Carter creating the TTM Squeeze and TTM Squeeze Pro -> Lazybear's original interpretation of the TTM Squeeze: Squeeze Momentum Indicator -> Makit0's evolution of Lazybear's script to factor in the TTM Squeeze Pro upgrades - Squeeze PRO Arrows
This is my version of their collective works, with amendments primarily to the Squeeze Conditions to more accurately reflect the color coding used by the official TMM Squeeze Pro indicator.
Rather than having a separate indicator window, the TTM Squeeze Pro is now overlaid on the price bars for easier viewing.
For those unfamiliar with the TTM Squeeze, it is simply a visual way of seeing how Bollinger Bands (standard deviations from a simple moving average ) relate to Keltner Channels ( average true range bands) compared with the momentum of the price action. The concept is that as Bollinger Bands compress within Keltner Channels , price volatility decreases, giving way for a potential explosive price movement up or down.
Differences between the original TTM Squeeze and TTM Squeeze Pro: -> Both use a 2 standard deviation Bollinger Band ; -> The original squeeze only used a 1.5 ATR Keltner Channel; and -> The pro version uses 1.0, 1.5 and 2.0 ATR Keltner Channels . The pro version therefore helps differentiate between levels of squeeze (compression) as the Bollinger Bands moves through the Keltner Channels i.e. the greater the compression, the more potential for explosive moves - less compression means more squeezing.
The Histogram shows price momentum whereas the colored dots (along the zeroline) show where the Bollinger Bands are in relation to the Keltner Channels: -> Cyan Bars = positive, increasing momentum; -> Blue Bars = positive, decreasing momentum (indication of a reversal in price direction); -> Red Bars = negative, increasing momentum; -> Yellow Bars = negative, decreasing momentum (indication of a reversal in price direction); -> Orange Dots = High Compression / large squeeze (One or both of the Bollinger Bands is inside the 1st (1.0 ATR) Keltner Channel); -> Red Dots = Medium Squeeze (One or both of the Bollinger Bands is inside the 2nd (1.5 ATR) Keltner Channel); -> Black Dots = Low compression / wide squeeze (One or both of the Bollinger Bands is inside the 3rd (2.0 ATR) Keltner Channels ); -> Green Dots = No Squeeze / Squeeze Fired (One or both of the Bollinger Bands is outside of the 3rd (2.0 ATR) Keltner Channel).
Ideal Scenario: As the ticker enters the squeeze, black dots would warn of the beginning of a low compression squeeze. As the Bollinger bands continue to constrict within the Keltner Channels , red dots would highlight a medium compression. As the price action and momentum continues to compress an orange dot shows warning of high compression. As price action leaves the squeeze, the coloring would reverse e.g. orange to red to black to green. Any compression squeeze is considered fired at the first green dot that appears.
Note: This is an ideal progression of the different types of squeezes, however any type of squeeze (and color sequence) may appear at anytime, therefore the focus is primarily on the green dots after any type of compression.
Entry and Exit Guide: -> John Carter recommends entering a position after at least 5 black dots or wait for 1st green dot ; and -> Exit on second blue or yellow bar or, alternatively, remain in the position after confirming a continuing trend through a separate indicator.
הערות שחרור
⋅
Updated to include input options for Bollinger Bands and Keltner Channels
Hey @Beardy_Fred Do you have any idea about the Early-in-Early-out indicator suggested by John? That will help in the early entry of the trades?
Beardy_Fred
⋅
@Srebalaji86, Not yet but it's on the list when we get time. The last ST indicator we worked on was the Ready Aim Fire version - you can find that by searching the indicator library for "FisherT + 3XStockastics + Trend Signals"
Srebalaji86
⋅
@Beardy_Fred, Thank you for the reply. Will take a look into that indicator
ctrader18
⋅
@Beardy_Fred, thank you, great work! BTW, does anyone know if it's worth paying for the lux algo subscription or will the free ones suffice?
Beardy_Fred
⋅
@ctrader18, a subscription is only worth it if you see value in what you're paying for. Which lux indicator were you looking at?
ctrader18
⋅
@ctrader18, I was looking at price action concepts, signals and overlays and Oscillator matrix. I've seen some videos on their tutorials but it seems more complex than say using the Squeeze Pro. Also, have you or any others done work on the Ready Aim Fire indicator? That would be cool if you could do that! Thanks.
CryptoRich76
⋅
@Beardy_Fred, I can't find this in the library searching each word separately, together, etc. What am I doing wrong? Maybe search by author? Regarding: FisherT + 3Xstockastics + Trend Signal s
asigh2020
⋅
@Beardy_Fred, I couldn't find Ready Aim Fire indicator. Plz help me out.
asigh2020
⋅
@Beardy_Fred, I coundn't find Ready Aim Fire indicator. Plz help me out 🙏
Boot-Hill
⋅
I really appreciate your work on this. Do you know if it works on all markets? Currencies, gold and indices, as well as stocks? Thanks for any reply you give.