Master The TTM Squeeze Indicator on ThinkorSwim
Summary
TLDRIn this video, the presenter shares their favorite trading indicator, the TTM Squeeze, which they've used for years and is integral to 90% of their trades. The indicator combines momentum with Bollinger Bands and counter channels, providing insights into market movements. It features different colored dots and momentum bars to signal potential market shifts. The presenter explains how to interpret these signals, using examples like Microsoft, TCOM, QQQ, and Apple to demonstrate how the TTM Squeeze can identify high-probability trading setups for both day trading and swing trading.
Takeaways
- 🎥 The video is focused on explaining how to use the 'TTM Squeeze' indicator for trading.
- 🔗 The presenter emphasizes the importance of subscribing and clicking the bell icon for updates.
- 📈 The TTM Squeeze is a favored trading tool that combines momentum with Bollinger Bands and counter channels.
- 🆓 There's a free edition of the TTM Squeeze, which offers basic functionality, and a pro edition that includes additional features like orange dots and arrows.
- 📊 The indicator uses color-coded momentum bars to represent market conditions: light blue for strong buying, red for strong selling, dark blue for fading buying momentum, and yellow for returning buyers.
- 📉 Understanding EMA (Exponential Moving Average) 'stacks' is crucial for identifying bullish or bearish market conditions.
- 📌 The presenter uses the TTM Squeeze to confirm market direction by looking for alignment between the momentum color and the position relative to EMAs.
- 🟥🟧 High compression squeezes indicated by red and orange dots are significant for predicting imminent price movements.
- 📚 The video references a trading book 'The New Age of Technical Analysis' on Amazon for further reading on the TTM Squeeze.
- 📊 The TTM Squeeze Pro edition offers additional tools like 'Ready Aim Fire' and color-coded candlesticks to enhance trading decisions.
Q & A
What is the main topic of the video?
-The main topic of the video is explaining how to use the TTM Squeeze indicator for trading, particularly for finding high probability setups.
What does TTM Squeeze stand for?
-TTM Squeeze stands for Trade The Momentum Squeeze, which is a trading indicator that combines momentum with Bollinger Bands and counter channels.
What is the significance of the different color codes in the TTM Squeeze indicator?
-The color codes in the TTM Squeeze indicator represent different momentum strengths: light blue for strong buying momentum, red for strong selling momentum, dark blue for declining buying momentum, and yellow for returning buying momentum.
What do the dots in the TTM Squeeze indicator represent?
-The dots in the TTM Squeeze indicator represent high compression squeezes, which are significant points that indicate an upcoming significant price movement.
How does the presenter use the TTM Squeeze indicator in their trading strategy?
-The presenter uses the TTM Squeeze indicator by looking at the EMA (Exponential Moving Averages) stack, the color of the momentum, and the presence of dots to determine whether to look for bullish or bearish trades.
What is the difference between the free and pro editions of the TTM Squeeze indicator?
-The free edition of the TTM Squeeze indicator provides green and red dots, while the pro edition includes additional features like orange dots, black dots, up and down arrows, and colored candlesticks.
How does the presenter interpret the EMA stack in relation to the TTM Squeeze indicator?
-The presenter interprets a bullish or bearish stack by looking at the order of EMAs. A bearish stack has EMAs in descending order, and a bullish stack has EMAs in ascending order.
What is the 'ready aim fire' indicator mentioned in the video?
-The 'ready aim fire' indicator is a part of the TTM Squeeze Pro edition that signals when a squeeze is ready to release, providing buy or sell signals based on the momentum and position relative to the moving averages.
How does the presenter use the colored candlesticks in the TTM Squeeze Pro edition?
-The presenter uses the colored candlesticks in the TTM Squeeze Pro edition to understand the market psychology and to get early entry signals, as the candlesticks can indicate the direction in which the squeeze is likely to fire.
Can the TTM Squeeze indicator be used for different time frames?
-Yes, the TTM Squeeze indicator can be used for different time frames, from intraday to weekly or even three-day timeframes, to identify trading opportunities.
What is the presenter's approach to using the TTM Squeeze indicator in the morning?
-The presenter's morning approach is to check one-hour, four-hour, and daily time frames to identify the EMA stack and the overall momentum color on the squeeze to decide on the day's trading strategy.
Outlines
📈 Introduction to the TTM Squeeze Trading Indicator
The speaker begins by welcoming viewers to the video and encourages them to like, subscribe, and enable notifications. They introduce the topic of the video, which is the TTM Squeeze trading indicator, and express their enthusiasm for it, stating that it plays a significant role in their trading strategy. The TTM Squeeze is described as a combination of momentum and Bollinger Bands with counter channels. The speaker explains the different colors of the indicator and their meanings: light blue for strong buying momentum, red for strong selling momentum, dark blue indicating fading buying momentum, and yellow for returning buyers. They also mention the free and pro versions of the indicator, with the latter offering additional features like orange dots and colored candlesticks. The speaker then demonstrates how to apply the indicator using a chart of Microsoft, explaining the significance of the EMA (Exponential Moving Average) stack and how it can be used to identify potential trades.
📊 Analyzing Momentum and Squeeze Signals
In this paragraph, the speaker delves deeper into the analysis of momentum and squeeze signals. They discuss how the momentum bars' size indicates the strength or weakness of a move, using the example of TCOM. The speaker explains that growing light blue bars signal increasing momentum, which could预示着 a breakout. They also cover the QQQ example, noting that while there is a squeeze, it is more likely to result in a downward move because the stock is below the moving averages. The discussion continues with the importance of color-coded momentum and dots in the TTM Squeeze Pro edition for psychological trading advantages. The speaker emphasizes how these indicators can provide early entry signals, which are crucial for day trading and swing trading strategies. They also touch on the 'Ready, Aim, Fire' indicator, which predicts when a squeeze is about to release, and how it can be used on different time frames for trading decisions.
💻 Practical Application of TTM Squeeze in Trading Strategies
The speaker concludes by discussing the practical application of the TTM Squeeze Pro in their trading strategies. They mention using arrows as part of the Pro edition to predict the direction of a squeeze, and how these arrows, combined with sell signals on the 'Ready, Aim, Fire' indicator, can confirm a stock's price drop. The speaker uses Apple and NVIDIA as examples to illustrate how the TTM Squeeze can be applied on different time frames, from intraday to weekly charts. They reiterate the importance of the TTM Squeeze in their trading and invite viewers to request more content on the topic. The speaker also plugs their book, 'The New Age of Technical Analysis', which is available on Amazon, and ends the video by asking viewers to like and subscribe for more videos.
Mindmap
Keywords
💡TTM Squeeze
💡Momentum
💡Bollinger Bands
💡EMA (Exponential Moving Average)
💡Bearish/Bullish Stack
💡High Compression Squeezes
💡Colored Candlesticks
💡Ready Aim Fire Indicator
💡Intraday Time Frame
💡Swing Trading
💡Day Trading
Highlights
Introduction to the TTM Squeeze indicator, a favorite trading tool used by the presenter.
Explanation of the free and pro editions of the TTM Squeeze indicator.
TTM Squeeze indicator combines momentum with Bollinger Bands and the counter channels.
How to interpret the colors of the TTM Squeeze indicator for market momentum.
Importance of EMA (Exponential Moving Average) in identifying bullish or bearish market conditions.
Use of EMA 'stacks' to determine trading strategy for puts or calls.
Confirmation of bearish or bullish market conditions using momentum colors.
Example of using TTM Squeeze on Microsoft's one-hour chart.
Explanation of high compression squeezes indicated by red and orange dots.
Case study of a swing trade on T-Com using the TTM Squeeze indicator.
Importance of the size of the histogram in determining the strength of a move.
How QQQ's position relative to moving averages influences the squeeze's direction.
Daily strategy of the presenter using TTM Squeeze across different time frames.
Additional features of the TTM Squeeze Pro edition, including colored candlesticks.
Psychological impact of colored candlesticks on trading decisions.
Use of the 'ready, aim, fire' indicator to time entry and exit points in trades.
Application of TTM Squeeze on different time frames from intraday to weekly.
Example of Nvidia's price drop forecasted using TTM Squeeze Pro.
Final thoughts on the integral role of TTM Squeeze in the presenter's trading strategy.
Transcripts
what's going on everybody welcome back
to yet another video so in today's video
i'm gonna be explaining how to use the
ttm squeeze and how to use it to find
high probability setups but real quick
before we get up to the video what i
need you guys to do is make sure to
click that like as well as clicking that
subscribe and that bell icon it would
mean the absolute world to me but
without further ado let's hop into the
video okay so like i said we are going
to be talking about the ttm squeeze and
this is by far my favorite trading
indicator i've been using it for years
and i would say that the ttm squeeze
plays a role in like 90
of my overall trades so if we bring this
chart right on over here as we see we
have this ttm squeeze indicator down
here now there is a free edition but
there is also a pro edition so if you
guys do want to check out the pro
edition i will be leaving a link down in
the description basically the difference
between the pro edition and the free
edition is on thick or swim if you're
using the free edition you only get the
green dots and i believe the red dots uh
but with the pro edition you get the
orange dots which is very important
black dots these up and down arrows the
colored candlesticks etc etc so what
we're going to do is we are going to
look at a chart of microsoft on the one
hour time frame now basically what the
ttm squeeze indicator is is it's a
mixture of momentum as well as the
bollinger bands and the counter channels
so basically to understand the overall
momentum in the ttm squeeze light blue
is going to be very strong by momentum
red is going to be very strong selling
momentum dark blue is going to let you
know that the buying momentum is dying
down and then yellow is letting you know
the buyers are coming back into the
market now to really understand where
the momentum can go it's very easy what
you need to do is you need to put on
your 5 8 21 34 55 and 89 ema so
typically if the 5 ema is below the 8
the 8 is below 21 21 below 34 34 below
55 and 55 below 89 this is what's known
as a bearish stack and ideally you want
to be looking for puts now on the flip
side if the five is above the eight
eight above 21 21 above 34 34 above 55
55 above 89
ideally you want to be looking for calls
so the very first thing i do is i try to
understand okay do we have a bullish
stack or do we have a bearish stack so
if we're looking at microsoft in the
last what is this like week and a half
or two weeks we can see that the ema's
are stacked down so it's a bearish stack
at the same time we have the red
momentum right here which is basically
double confirmation that microsoft is
bearish and ideally we should be looking
for puts now there are times where we
can get the yellow momentum or we can
get the light blue momentum when the
stock is below the moving averages if
that's the case as long as we continue
to hold below the moving averages this
squeeze will go back to dark blue and
then dark blue will go back to red and
we will continue to sell off vice versa
to the upside sometimes you will notice
that we get red momentum or even dark
blue momentum when we're above the
moving averages but if we continue to
hold above the moving averages more than
likely it's going to go back into yellow
and yellow is going to go back into
light blue so if we have light blue and
the stock is above the moving averages
more than likely that stock is going to
continue to push we can even have yellow
and be above the moving averages more
than likely it will continue to push so
we have a bullish stack yellow momentum
or light blue momentum the odds of this
thing going up are a lot higher than
this thing going down now at the same
time we have red dots orange dots black
dots and green dots basically what i
like to look for is going to be the red
dots and the orange dots what those are
those are going to be your high
compression squeezes so imagine you take
a ziploc baggie you blow into it you
twist it up eventually that ziploc
baggie is going to pop and that's
essentially what a squeeze is so a
recent example of a swing trade that we
took in the discord server was on t-com
t-c-o-m so if we're looking at t-com on
the daily time frame you can see that we
have these red dots and these orange
dots again this is letting you know that
a big move is going to be made once the
squeeze releases so if we piece that
together with okay tcom is above all the
moving averages it has light blue
momentum with the red and orange dots
more than likely this squeeze is going
to fire up and we can take advantage of
that so as we see this was a beautiful
move to the upside now at the same time
with the momentum i forgot to mention
this but when the dark blue bars are
shrinking that's letting you know that
the body momentum is you know dropping a
significant amount when the light blue
bars are growing that's letting you know
a lot of buyers are coming into the
market as the red momentum grows down
that's telling you the sellers are
increasing and then as the yellow comes
in that's letting you know that the
sellers are decreasing and the buyers
are coming back in so the size on the
histogram lets you know the strength or
weakness behind the move so as we can
see with this t-com example again we're
above moving averages orange momentum
and what do we notice with these light
blue bars well they're growing before
t-com even breaks out that's letting us
know that the momentum is picking up and
this squeeze is more than likely going
to fire up now if we go on over to qqq
today i think it had a i want to say it
was a 30 minute squeeze yes so if we're
looking at qqq yeah we can take
advantage to the upside but ideally we
want to look for this 30 minute squeeze
to fire down because you can see we're
still holding below the moving averages
so qqq right now we are in that orange
dot squeeze we did get the very first
sign of dark blue momentum which is more
than likely going to turn red again if
we continue to hold below these moving
averages so odds or if qqq breaks below
302.79
this orange dot squeeze is going to fire
down and we're gonna see lower lows on
qqq so now if we piece this into you
know day trading perspectives or even
swing training perspectives i mean
apple's a really good example of this
i'll show you guys on a five minute but
apple in the 30 minute it was squeezing
below the moving averages yeah we have
that yellow momentum but as you can see
we went back to red and now this thing
is about to fire down so again below the
moving averages red momentum red or
orange dots the odds of this thing going
down are very very high now if we go to
the five minute time frame you can see
apple was holding above the moving
averages today light blue momentum is
growing to the upside and then we saw a
shot right into the daily high before
rejected and now it's all the way back
down here so when i say a majority of my
strategy really depends on just looking
are we stacked down stacked up plus what
color is the are we in a squeeze uh what
color is the momentum that's like a
majority of my overall strategy so every
single morning i go live here on youtube
and i do this exact same strategy every
single morning i pull up a one-hour time
frame a four-hour time frame and then a
daily time frame and i identify okay are
we stacked up on all these time frames
are we stacked down and what color is
the overall momentum on the squeeze now
also with the pro edition of the ttm
squeeze there's other things you can get
so we also have this ready aim fire
indicator which i'll talk about here in
a minute but my favorite thing about the
ttm squeeze pro is first off you know
the ttm squeeze itself but these colored
candlesticks right here the reason i
like the color candlesticks is because
we can have a light blue candle even
though it's a red bar so it's more so
like a psychology thing or we can have a
light blue bar or we can even have a red
bar during a green bar so if you're in
puts you're just going to look at this
and you're going to assume that it's red
so it's helped a lot with my overall
training psychology but also what i
really like is these candlesticks
they'll turn green and it's basically
going to tell you which way that squeeze
is going to fire so when you see the
green candlestick that's basically the
ttm squeeze pro like telling you yeah
you should get into this trade because
the squeeze about to fire so if we're
looking at tcom going the day that we
actually entered the swing was right
here so again we have the light blue
bars they're growing orange dot red dot
orange dots and then we get the green
candlestick right here which is saying
like yeah get into the trade the squeeze
is ready to fire up so i really like
using the colored candlestick again
psychology reasons and then it gives you
that early entry so it's called the
early in and out indicator and then you
also have the ready aim fire indicator
so basically what this does is it lets
you know when that squeeze is ready to
release so if we're at this middle point
right here and again we're in yellow
momentum or even light blue momentum and
basically with this thing what i'm
looking for is this middle line or even
down here at this negative 1.2 or above
1.2 so when we get sell signals above
1.2 that's letting you know that the
stock is more than likely going to pull
back when you get buy signals around
this midline right here especially if
you're above moving averages uh yellow
momentum light blue momentum uh oranged
out red dot now the odds of this thing
firing up are very very high or if we're
below the moving averages and we get
this strong cell signal and again we
have dark blue momentum red momentum and
this thing says yeah it's going down
more than likely that squeeze is going
to fire down so you can see that's
exactly what happened with tcom right on
over here and again you can use this on
an intraday time frame you can use it on
a higher time frame like a weekly or
even a three-day so if we're looking at
the weekly of t-com you can see that
we're squeezing we get the buy signal
right here we start getting the green
candles basically saying like yeah you
should get in long and what happens
there goes t-comp or even over here we
didn't have like the red dots on the
squeeze but we had the dark blue
momentum it gave the sell signal right
here tcom had a nice little drop down in
price so now let's see on an intraday
time frame let's go on over to something
like maybe nvidia so if we're looking at
nvidia on friday on the five minute time
frame again the ttm squeeze pro it comes
with these arrows right here they
basically try to help you understand
which way the squeeze is going to fire
so when these pop up with the down
signal and the stock is below the moving
averages and it's squeezing
probabilities of this thing firing down
are very very high plus on top of that
you also have a double sell signal on
the ready aim fire indicator so
everything right here is confirming that
that nvidia was going to drop in price
um if we go back to apple on the 30
minute let's take a look at that today
so if we look at apple on the 30 minute
time frame you can see that we ended up
getting the sell signal on the ready
game fire where below all the moving
averages and we have the red momentum on
the ttm squeeze so again the odds of
apple firing down are a lot higher than
apple going up in price so that is how i
use the ttm squeeze pro in my overall
swing trading and day trading strategy
again if you guys do want more ttm
squeeze videos make sure to comment down
below i will definitely make more in the
future i mean it when i say it i've been
using this indicator for years and it
plays a huge role in all of my trades so
if you guys want more content on the
squeeze comment down below i also talk
about it in my trading book the new age
of technical analysis on amazon if you
guys want to secure that but other than
that make sure you guys like the video
subscribe to the channel everybody have
an amazing rest of your day and i'll see
you guys in the next video
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