TTM Squeeze Release Signals with Momentum and EMA Filters

Summary

The document describes a long-entry setup intended for call debit spreads. It identifies a squeeze using Bollinger Bands inside Keltner Channels, then looks for the squeeze to turn off for two consecutive bars after being on. A signal also requires the momentum histogram to be positive and rising, with the 9-period EMA at or above the 21-period EMA. The script plots the averages and marks qualifying bars.

The page claims the approach is highly successful but supplies no performance figures, test details, market, or timeframe to support that claim. The included strategy code separately enters long and short positions when 14- and 28-period simple moving averages cross; it does not implement the described squeeze-based debit-spread rules. This mismatch means the code and prose do not establish a complete, tested options strategy, and the displayed signal logic alone gives no exit or risk-management method.

Key ideas

• The squeeze state is defined by Bollinger Bands fitting inside Keltner Channels.
• A long setup requires two consecutive squeeze-off bars after a squeeze-on state two bars earlier.
• The momentum filter requires a positive histogram value that is increasing.
• The fast EMA must be at or above the slower EMA for a long signal.
• The prose describes call debit spreads, while the included strategy orders use separate simple moving average crossovers.

Tags

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