TTM Squeeze Oscillator for Volatility Contractions and Momentum

Summary

The TTM Squeeze combines Bollinger Bands and Keltner Channels to identify volatility contractions. When the Bollinger Bands sit inside the Keltner Channel, the indicator marks a squeeze, presented as a condition in which a consolidation breakout may be approaching. When that condition ends, the display indicates that the squeeze is off. This is a setup cue, not a direction or timing guarantee.

A histogram shows momentum direction and whether momentum is strengthening or fading: rising positive readings are colored differently from weakening positive readings, while negative readings distinguish strengthening from easing bearish momentum. The indicator can also color price candles to match those states, and its dot offset setting changes where squeeze markers appear around zero. The document supplies implementation parameters and logic, but no market examples, performance tests, or risk rules; traders would need to evaluate signals and false breakouts independently.

Key ideas

• The squeeze condition occurs when Bollinger Bands contract inside the Keltner Channel.
• Squeeze markers flag a volatility contraction that may precede a breakout.
• Histogram colors distinguish positive and negative momentum and whether it is strengthening or fading.
• An optional candle coloring mode transfers the oscillator’s momentum states to price bars.
• The document provides indicator logic but no performance evidence or trading risk controls.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.