TTM Squeeze
The TTM Squeeze is a custom technical indicator that detects periods when the market is “squeezing” — meaning volatility is contracting and a breakout could be right around the corner. It combines Bollinger Bands, Keltner Channels, and momentum into one compact tool.
What makes it so special? It doesn’t just show you the squeeze — it also shows which direction the breakout is likely to go. That’s why it’s one of the most trusted tools by breakout traders, especially in stocks, options, and crypto.
How the TTM Squeeze Works
Here’s the logic:
- When Bollinger Bands move inside Keltner Channels, the market is in a low-volatility squeeze
- As soon as the Bollinger Bands expand outside the Keltner Channels, the squeeze releases
- A momentum histogram shows whether bulls or bears are in control
On most platforms, the indicator displays:
- Red dots: Squeeze is on (volatility is tight — get ready)
- Green dots: Squeeze has fired (price is breaking out)
- Momentum bars: Direction and strength of the potential move
| TTM Signal | Meaning |
|---|---|
| Red dot | Squeeze is active — breakout approaching |
| Green dot | Squeeze fired — breakout underway |
| Momentum rising | Bias toward upside breakout |
| Momentum falling | Bias toward downside breakout |
How Traders Use It
The TTM Squeeze is incredibly versatile. You can use it to:
- Prepare for breakouts before they happen
- Avoid fakeouts by entering only after the squeeze fires
- Identify direction using the momentum histogram
- Trade explosive moves in any asset class
Here’s how it’s usually done:
- Wait for a red dot to appear — this is your “get ready” phase
- Once the green dot prints and momentum supports it, you enter
- Manage the trade using price action, structure, or trailing stops
Because the TTM Squeeze works on any timeframe, it’s used by scalpers, swing traders, and long-term players alike.
Example Setup
You’re analyzing a crypto chart that’s been moving sideways for days. The TTM Squeeze prints several red dots, showing that volatility is drying up — a breakout is building.
Suddenly, a green dot appears, and the momentum bars shift higher.
You go long, and the move explodes upward. You entered early, but with confirmation — all thanks to the squeeze.
Pros and Cons of the TTM Squeeze
Pros
Predicts breakouts before they happen
Combines volatility and momentum in one tool
Works on all assets and timeframes
Helps avoid choppy conditions and fake signals
Cons
Can give false signals in very news-driven markets
Requires practice to combine with price action
Not built into every platform by default (may need import)
When to Use the TTM Squeeze
Use the TTM Squeeze when markets are coiling tightly, and you want to catch the next big move with timing and confidence. It’s perfect for range breakouts, earnings plays, macro events, or even simply finding high-probability setups before others do.
If you’re tired of entering too early or missing the move altogether, the TTM Squeeze gives you a structured edge — helping you stay patient, then strike when the time is right. Next one is a BIG ONE. Continue to the Gann Fan