***Changing the logic of the system to align with RickM's methodology. The previous system was based off an experienced coder form TradingView, however I find more merit in RickM's approach.***
This strategy focuses on trading the TTM Squeeze Pro indicator in combination with EMA trend ribbons to filter out fakeouts and align with the trend. It's designed for H1 or M5 timeframes while keeping the daily chart in mind for confirmation.
Setup Requirements:
EMA Trend Ribbon
EMA 21 (White) – The key trend indicator.
EMA 34 (Yellow)
EMA 55 (Orange)
EMA 89 (Red)
The ribbon identifies trend direction:
Bullish trend: EMAs stacked upward (21 > 34 > 55 > 89).
Bearish trend: EMAs stacked downward (21 < 34 < 55 < 89).
TTM Squeeze Pro (on TradingView)
Focus on the transition from red dots (Bollinger Bands inside Keltner Channels) to black dots.
Look for momentum alignment with the squeeze breakout.
Entry & Exit Rules
Entry:
Trade breakouts from red to black dots if the momentum histogram aligns with the trend.
Only take trades in the direction of the EMA 21 and the ribbon.
Exit:
Close the trade when the momentum histogram shifts from red to yellow and begins reversing.
Multi-Timeframe Confirmation
Always confirm the trend on higher timeframes (Daily or Weekly).
Check for squeeze setups across 15M, 30M, and higher timeframes for confluence.
FOR REFERENCE FROM TTM SQUEEZE PRO INDICATOR - Beardy_Fred
> John Carter creating the TTM Squeeze and TTM Squeeze Pro
-> Lazybear's original interpretation of the TTM Squeeze: Squeeze Momentum Indicator
-> Makit0's evolution of Lazybear's script to factor in the TTM Squeeze Pro upgrades - Squeeze PRO Arrows
For those unfamiliar with the TTM Squeeze, it is simply a visual way of seeing how Bollinger Bands (standard deviations from a simple moving average ) relate to Keltner Channels (average true range bands) compared with the momentum of the price action. The concept is that as Bollinger Bands compress within Keltner Channels, price volatility decreases, giving way for a potential explosive price movement up or down.
Differences between the original TTM Squeeze and TTM Squeeze Pro:
-> Both use a 2 standard deviation Bollinger Band ;
-> The original squeeze only used a 1.5 ATR Keltner Channel; and
-> The pro version uses 1.0, 1.5 and 2.0 ATR Keltner Channels .
The pro version therefore helps differentiate between levels of squeeze (compression) as the Bollinger Bands moves through the Keltner Channels i.e. the greater the compression, the more potential for explosive moves - less compression means more squeezing.
The Histogram shows price momentum whereas the colored dots (along the zeroline) show where the Bollinger Bands are in relation to the Keltner Channels:
-> Cyan Bars = positive, increasing momentum;
-> Blue Bars = positive, decreasing momentum (indication of a reversal in price direction);
-> Red Bars = negative, increasing momentum;
-> Yellow Bars = negative, decreasing momentum (indication of a reversal in price direction);
-> Orange Dots = High Compression / large squeeze (One or both of the Bollinger Bands is inside the 1st (1.0 ATR) Keltner Channel);
-> Red Dots = Medium Squeeze (One or both of the Bollinger Bands is inside the 2nd (1.5 ATR) Keltner Channel);
-> Black Dots = Low compression / wide squeeze (One or both of the Bollinger Bands is inside the 3rd (2.0 ATR) Keltner Channels );
-> Green Dots = No Squeeze / Squeeze Fired (One or both of the Bollinger Bands is outside of the 3rd (2.0 ATR) Keltner Channel).
Ideal Scenario:
As the ticker enters the squeeze, black dots would warn of the beginning of a low compression squeeze. As the Bollinger bands continue to constrict within the Keltner Channels , red dots would highlight a medium compression. As the price action and momentum continues to compress an orange dot shows warning of high compression. As price action leaves the squeeze, the coloring would reverse e.g. orange to red to black to green. Any compression squeeze is considered fired at the first green dot that appears.
Note: This is an ideal progression of the different types of squeezes, however any type of squeeze (and color sequence) may appear at anytime, therefore the focus is primarily on the green dots after any type of compression.
Entry and Exit Guide:
-> John Carter recommends entering a position after at least 5 black dots or wait for 1st green dot ; and
-> Exit on second blue or yellow bar or, alternatively, remain in the position after confirming a continuing trend through a separate indicator.
This strategy focuses on trading the TTM Squeeze Pro indicator in combination with EMA trend ribbons to filter out fakeouts and align with the trend. It's designed for H1 or M5 timeframes while keeping the daily chart in mind for confirmation.
Setup Requirements:
EMA Trend Ribbon
EMA 21 (White) – The key trend indicator.
EMA 34 (Yellow)
EMA 55 (Orange)
EMA 89 (Red)
The ribbon identifies trend direction:
Bullish trend: EMAs stacked upward (21 > 34 > 55 > 89).
Bearish trend: EMAs stacked downward (21 < 34 < 55 < 89).
TTM Squeeze Pro (on TradingView)
Focus on the transition from red dots (Bollinger Bands inside Keltner Channels) to black dots.
Look for momentum alignment with the squeeze breakout.
Entry & Exit Rules
Entry:
Trade breakouts from red to black dots if the momentum histogram aligns with the trend.
Only take trades in the direction of the EMA 21 and the ribbon.
Exit:
Close the trade when the momentum histogram shifts from red to yellow and begins reversing.
Multi-Timeframe Confirmation
Always confirm the trend on higher timeframes (Daily or Weekly).
Check for squeeze setups across 15M, 30M, and higher timeframes for confluence.
FOR REFERENCE FROM TTM SQUEEZE PRO INDICATOR - Beardy_Fred
> John Carter creating the TTM Squeeze and TTM Squeeze Pro
-> Lazybear's original interpretation of the TTM Squeeze: Squeeze Momentum Indicator
-> Makit0's evolution of Lazybear's script to factor in the TTM Squeeze Pro upgrades - Squeeze PRO Arrows
For those unfamiliar with the TTM Squeeze, it is simply a visual way of seeing how Bollinger Bands (standard deviations from a simple moving average ) relate to Keltner Channels (average true range bands) compared with the momentum of the price action. The concept is that as Bollinger Bands compress within Keltner Channels, price volatility decreases, giving way for a potential explosive price movement up or down.
Differences between the original TTM Squeeze and TTM Squeeze Pro:
-> Both use a 2 standard deviation Bollinger Band ;
-> The original squeeze only used a 1.5 ATR Keltner Channel; and
-> The pro version uses 1.0, 1.5 and 2.0 ATR Keltner Channels .
The pro version therefore helps differentiate between levels of squeeze (compression) as the Bollinger Bands moves through the Keltner Channels i.e. the greater the compression, the more potential for explosive moves - less compression means more squeezing.
The Histogram shows price momentum whereas the colored dots (along the zeroline) show where the Bollinger Bands are in relation to the Keltner Channels:
-> Cyan Bars = positive, increasing momentum;
-> Blue Bars = positive, decreasing momentum (indication of a reversal in price direction);
-> Red Bars = negative, increasing momentum;
-> Yellow Bars = negative, decreasing momentum (indication of a reversal in price direction);
-> Orange Dots = High Compression / large squeeze (One or both of the Bollinger Bands is inside the 1st (1.0 ATR) Keltner Channel);
-> Red Dots = Medium Squeeze (One or both of the Bollinger Bands is inside the 2nd (1.5 ATR) Keltner Channel);
-> Black Dots = Low compression / wide squeeze (One or both of the Bollinger Bands is inside the 3rd (2.0 ATR) Keltner Channels );
-> Green Dots = No Squeeze / Squeeze Fired (One or both of the Bollinger Bands is outside of the 3rd (2.0 ATR) Keltner Channel).
Ideal Scenario:
As the ticker enters the squeeze, black dots would warn of the beginning of a low compression squeeze. As the Bollinger bands continue to constrict within the Keltner Channels , red dots would highlight a medium compression. As the price action and momentum continues to compress an orange dot shows warning of high compression. As price action leaves the squeeze, the coloring would reverse e.g. orange to red to black to green. Any compression squeeze is considered fired at the first green dot that appears.
Note: This is an ideal progression of the different types of squeezes, however any type of squeeze (and color sequence) may appear at anytime, therefore the focus is primarily on the green dots after any type of compression.
Entry and Exit Guide:
-> John Carter recommends entering a position after at least 5 black dots or wait for 1st green dot ; and
-> Exit on second blue or yellow bar or, alternatively, remain in the position after confirming a continuing trend through a separate indicator.
. Never manually charted squeezes, always used indicator.
