Master The TTM Squeeze Indicator on ThinkorSwim

Summary

In 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.