It provides visual signals for both consolidation (squeeze) and potential breakouts (release). It helps traders identify periods of low volatility that often precede strong breakouts. The TTM Squeeze is considered a powerful and versatile indicator for several reasons: When the bands expand and move outside the Keltner Channels, the squeeze is released, signaling a potentially significant price movement. The TTM Squeeze indicator is designed to highlight moments when the Bollinger Bands contract and move within the Keltner Channels, indicating a "squeeze" in progress. "TTM" stands for "Trade The Markets," representing the company founded by John Carter. It uses a combination of Bollinger Bands and Keltner Channels to measure market volatility and detect periods of consolidation. The TTM Squeeze indicator is a popular tool developed by John Carter to help traders identify potential squeezes in the market. During this phase, the stock price may move sideways, indicating that a breakout is imminent. Price Consolidation Squeeze: Happens when a stock is in a period of consolidation, building up energy before making its next big move. This can happen when positive news or rumors drive the price higher, forcing short sellers to exit and adding to the buying pressure. Short Squeeze: Occurs when a stock experiences a sudden upward price movement due to short sellers covering their positions. Understanding the Concept of a SqueezeĪ "squeeze" in trading refers to a specific market condition that precedes a substantial price movement. In this article, we'll explore the TTM Squeeze indicator, its key features, and how you can use it to enhance your trading strategy. One such tool is the TTM Squeeze indicator, available on the Thinkorswim trading platform. While some may attribute this to luck, successful traders know that using the right technical analysis tools can make all the difference. Trading in the stock market can be exhilarating, especially when you can identify the perfect moment to enter a trade right before a stock makes a massive move.
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