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.

Outlines

00:00

📈 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.

05:02

📊 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.

10:02

💻 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.

Keywords

💡TTM Squeeze

TTM Squeeze refers to a trading indicator that combines momentum with Bollinger Bands and counter channels to predict market movements. In the video, it is described as the favorite trading tool of the presenter, used in approximately 90% of their trades. It is integral to the video's theme as it is the central tool discussed for identifying high probability trading setups.

💡Momentum

Momentum in trading refers to the rate of change in price of a security over a given time period. The TTM Squeeze indicator uses different colors to represent the strength of buying or selling momentum. For example, light blue indicates strong buying momentum, while red indicates strong selling momentum. This concept is crucial for understanding the indicator's signals.

💡Bollinger Bands

Bollinger Bands are a technical analysis tool that plots two standard deviation bands around a moving average. They are used to identify high and low levels of a security's price relative to past levels. In the video, they are part of the TTM Squeeze indicator, helping to determine the volatility and potential reversal points in a stock's price.

💡EMA (Exponential Moving Average)

EMA, or Exponential Moving Average, is a type of moving average that places a greater weight and significance on the most recent data points. The video mentions setting multiple EMAs (5, 8, 21, 34, 55, and 89) to understand the trend direction. A 'bullish stack' occurs when EMAs are in ascending order, suggesting a potential for upward price movement.

💡Bearish/Bullish Stack

A bearish stack refers to a downward排列 of EMAs, indicating a potential downtrend, while a bullish stack is an upward排列, suggesting an uptrend. These concepts are used in the video to determine the overall market trend and to decide whether to look for 'puts' (bearish trades) or 'calls' (bullish trades).

💡High Compression Squeezes

High Compression Squeezes, indicated by red and orange dots in the TTM Squeeze indicator, suggest an imminent significant price movement. The video uses the analogy of a ziploc bag filled with air to illustrate the concept, where the bag represents the stock price and the eventual 'pop' signifies a breakout in price.

💡Colored Candlesticks

Colored Candlesticks in the TTM Squeeze Pro version provide a visual representation of market sentiment. For instance, a green candle might indicate a bullish signal even if the bar is red, which can influence a trader's psychology and decision-making. They are used in the video to enhance the understanding of market direction.

💡Ready Aim Fire Indicator

The Ready Aim Fire Indicator is a part of the TTM Squeeze Pro tool that signals when a squeeze is ready to 'fire' or release its built-up pressure. It is used in the video to time entries and exits in trades, providing a quantitative measure to complement the qualitative analysis of the squeeze.

💡Intraday Time Frame

Intraday Time Frame refers to the analysis of stock price movements within a single trading day. The video discusses using the TTM Squeeze indicator on various time frames, including intraday, to identify trading opportunities. This term is important for understanding the flexibility of the indicator for different trading strategies.

💡Swing Trading

Swing Trading is a trading strategy that involves holding a position for a few days to several weeks, aiming to capture significant price movements. The video presenter mentions using the TTM Squeeze indicator for swing trades, indicating its utility for medium-term trading strategies.

💡Day Trading

Day Trading involves buying and selling financial instruments within the same trading day. The video discusses the application of the TTM Squeeze indicator for day trading, emphasizing its real-time analysis capabilities and its role in identifying short-term trading opportunities.

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