What is the TTM squeeze indicator?

The image below shows a stock price chart with the TTM Squeeze indicator (TTM: Trade the Market) displayed on the bottom pane. The TTM Squeeze indicator looks at the relationship between Bollinger Bands ®5 and Keltner Channels 6 to help potentially identify consolidations and signal when prices are more likely to break out (whether up or down).

What is a squeeze indicator?

The Squeeze indicator was built from 3 components. The first two are Bollinger Bands and Keltner Channels – they trigger the red and green dots. When the Bollinger Bands (above in cyan) go inside of the Keltner Channel (above in red), the market is said to be in a squeeze.

What is a firing the squeeze indicator?

By utilizing the firing the squeeze strategy, the indicator helps traders to identify breakouts after the price has been consolidated inside a range-bound area. The TTM Squeeze is a technical analysis indicator that measures price action volatility and market momentum and helps traders take advantage of changes in different market conditions.