ttm squeeze what is the momentum indicator

Let’s consider a zero line with multiple red dots it shows a consolidating market that waits for a rising opportunity. It is vital for investors to know when is the right time to enter the market the information can be obtained by monitoring the squeeze in the histogram. A momentum indicator above the zero line shows a possibility of rising, represented by green dots, and indicates a profitable purchase.Ī histogram below the zero line indicates a possible decline in values represented by red dots and is a shorting opportunity for investors. The momentum oscillator is a critical aspect of the TTM squeeze, and it can help us detect the entry and exit points of the trade. What does TTM Indicator do? Photo: Asia Forex Mentor We talk more about momentum indications in the next section.

A bar above the zero line shows positive magnitude, and below the zero line shows a decline in values. The bar length indicates the rise in share prices, and their size represents the change in direction. The question in your mind would be how the technical indicator works a TTM squeeze indicator has a zero line based on the average security price it stays constant at its position, and histogram bars are extended at either side to highlight the price movement. It has become a dependable tool for traders to magnify investment returns and bring more profits. TTM squeeze indicator has been a popular choice amongst traders to detect market volatility and generate target entry and exit points. What is TTM Squeeze Indicator Photo: Phemex Let’s use his knowledge to succeed in the investment world. We shall describe the ideal strategies for traders to maximize their returns using the TTM indicator and how you can master the art.Įzekiel Chew is a world-renowned mentor among financial students he has helped thousands of students achieve their trading dreams with his expertise.

Well, the blog is the perfect fit for you we have Ezekiel Chew on board with us to share his take on the TTM squeeze indicator. Do you wish to know more about this fantastic strategy? It can help you ascertain your trading decisions and avoid buying a declining share. The #1 Forex Trading Course is Asia Forex MentorĪ popular safeway for investors is the TTM-squeeze indicator it utilizes a zero line and momentum indicators to highlight the changes in asset price over time. The TTM Squeeze Indicator helps quantify current chart momentum with a representation of the relationship between Bollinger Bands® and Keltner Channels showing compression and expansion.Want to jump straight to the answer? The best forex broker for traders is Avatrade Chart courtesy of Įxpanding momentum is shown by the bars growing on the TTM momentum histogram and the expansion of the Bollinger Bands® with an end of the price squeeze being signaled by a change from red dots back to green. When the Bollinger Bands expand outside the Keltner Channels the dot turns green in the histogram signaling the beginning of the volatility expansion. The red dots signal a squeeze when the Bollinger Bands® are squeezed into Keltner Channels, you can see this on the chart below. Green dots are a condition of no squeeze and the red dots show up to signal when the price action is squeezing. The zero line is the horizontal line is where the squeeze is visualized by green and red dots. The blue vertical lines are positive momentum and the orange vertical lines are negative momentum in relation to where they are above or below the horizontal zero line. The momentum oscillator is the vertical histogram which indicates the direction momentum is moving in on the chart. This helps to identify when a chart is compressing or ‘squeezing’ into a tight range as this signals when the probability becomes higher that prices could break out of a tight range and begin to trend or see a large trading range price expansion.īy helping to identify when the potential for time periods of volatility are about to begin, the TTM Squeeze can be a good technical tool for trading price action as it transitions from a slow low volatility range to a fast high volatility trend. The BB/KC Squeeze Indicator, more popularly known as the TTM Squeeze Indicator is both a volatility and momentum indicator that visual shows the correlation between Bollinger Bands® and Keltner Channels on a chart.

Ttm squeeze what is the momentum indicator