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[Miles]

I find the TTM squeeze indicator essential for day trading. If you aren't already using QT (an excellent free charting app for Windows) you might want to check out my QuoteTracker Setup Guide, as I want to focus how to set this up as a custom indicator in Medved's QuoteTracker.

What is the TTM Squeeze Indicator

The TTM Squeeze is a commercial indicator from John Carter's tradethemarkets.com and retails for nearly $500. Near as I can tell it was gathered from free sources on the internet, rebranded and charged money for. So in this article I am going to show you how to add it into QuoteTracker for free. A great video on how it works can be found here or read the following...

Via momentum-trader.com:

When Bollinger Bands and the Keltner Channel are narrow, it indicates a period of rest or consolidation. Usually, the Keltner Channel lies within the Bollinger Bands, but when the Bollinger Bands are within the Keltner Channel, it indicates a period of extreme consolidation. When the Bollinger Bands breakout of the Keltner Channel, it usually signals a powerful move is about to take place. The direction of the move depends on the direction of the Momentum Oscillator. If the Momentum Oscillator is above zero, then the breakout is a long signal. If the Oscillator is below zero, then it’s a short signal. It’s that easy.

Setup TTM Squeeze in QuoteTracker

1. Goto Charts > Chart Paintbar Editor.

2. Click on Add New and name your new Paintbar, TTM Squeeze. Add the following lines of code in two separate rules:

• if (Bollinger Bands(20,2).Upper-Keltner Bands(20,1.5).Upper)<=0 set color to Red
• if (Bollinger Bands(20,2).Upper-Keltner Bands(20,1.5).Upper)>0 set color to Green

3. Be sure to click Save the Paintbar then go ahead and close the editor.

4. Okay now that the paintbar is created go ahead and right-click on any ticker from your list and choose Select Indicators.

5. Add Paintbar - Bottom to the Lower Available Indicators pane. Click on Edit and in the window that pops up:

From the dropdown choose: TTM Squeeze.
Change the Show On parameter to Shape Band - Zero Line.
Choose Foregnd, Thick = 6.
Set Shape to circle.



When finished, click ok.

6. Again in the Lower Available Indicators pane choose Momentum Oscillator. Click Edit on this and change the settings to 12,34. Now make sure to link the Paintbar (TTM Squeeze) and Momentum Oscillator (12,34) by clicking in between the two dots to the left of these indicators. A line should appear indicating they are linked.



7. If you like you can hide Bollinger Bands and Keltner Bands from the top pane by clicking Edit and choosing Hide Indicator for each of them.

8. Click ok, and your chart should now look something like the following.



That should be it. Let me know if you have any success/failures setting this up and using it. If I can help, I will. Would also love to hear what you guys think of this breakout indicator, as well as get some other custom QuoteTracker material here for others to use.

Hat tip to Boogster.

[Saintjames]

Just wanted to say I tested this out and it worked very well here!

[fherrada]

Thanks Miles, I love it and will sure use it from now on!

[pisssed]

Miles thats a sweet find! I will def do some test runs.

[Trader123]

Does anyone know how to do this in TradeStation???

[Trader123]

Also, in the Squeeze, there are dots on the histogram line which show when it starts. Does your's do that?? Does not seem to appear on the screen shots here?

If not, does anyone know how to do that?? Again, I am interested in a Tradestation solution...

[Longshot]

Originally Posted by Trader123 Also, in the Squeeze, there are dots on the histogram line which show when it starts. Does your's do that?? Does not seem to appear on the screen shots here? If not, does anyone know how to do that?? Again, I am interested in a Tradestation solution...

I think you're referring to the Parabolic, but I don't know how that would fit in here..