TTM Squeeze Indicator MT4
Traders in the financial market have tons of technical indicators from which to choose. One of the best indicators that can aid their trading is the TTM Squeeze Indicator MT4. It provides traders with the trading information that can enhance their activities by capturing a market’s consolidation shortly before it makes a big move. It also predicts the direction of the market. That once it begins to give traders an insight into the market’s movement and thus help them to make decisions based on the provided information. Today you can see if this one makes our TOP 10 MT4 Indicators page.
The TTM Squeeze Indicator TM4 measures the relationship between Keltner’s Channels and Bollinger Bands to enable traders to have an insight into the market at any time.
The indicator shows that as the distance between the Bollinger Bands and Keltner’s Channels increases so does the volatility of the market. Conversely, the distance between them will decrease when the volatility between them decreases.
How Does the TTM Squeeze Indicator Work?
Since the trading information it provides is dependent on the Bollinger Bands and Keltner’s Channels, the indicator establishes the relationship between the two by finding the section of the former that falls inside the latter. The indicator will turn off when the market finishes a move. This refers to a situation where bands are no longer within the Keltner’s Channels’ range but have been pushed outside it. Did you know you can use the TTM squeeze indicator with other premium indicators also? Such as the gold indicator mt4. Then you get more confirmations.
Traders need Buy/Sell signals from the indicator to trade. These signals enable them to understand the right time to purchase assets and the appropriate time to dispose of such assets for a profit.
To produce these signals, the TTM Squeeze Indicator MT4 is plotted along with another tool, the Momentum Oscillator. When the Momentum Oscillator is cyan, and the indicator is green or on, a Buy signal is produced. Until there are two bars in a single row, this signal is theoretically correct. Conversely, a red Momentum Oscillator and a green indicator provide a Sell signal. If there are no two yellow bars in a single row, the signal is also taken to be correct. And finally, when the indicator is red or off, that’s dangerous. Traders are advised against trading at that point.
You can receive signal alerts to keep you abreast of market moves. You can choose from the available alert options such as email, pop-up window, sound, and notification with the following inputs. This cool indicator works good with a premium forex buy sell indicator. But off course it all comes down to testing!
Here are these:
1. PushAlerts: You can set this to true if you wish to receive alerts on your mobile through MetaTrader notifications.
2. PopupAlerts: If you set this to true, you will receive alerts through a pop-up window.
3. SoundAlerts: If you wish to receive sound alerts, set this to true.
4. EmailAlerts: Set this option to true to receive email alerts whenever signals are confirmed.
5. UseAlerts: To enable you to manage your alerts, set the UseAlerts option to true.
6. SoundFile: If you opt for sound alert, this option enables you so specify a wav file you wish to set as your alert sound.
Components of the TTM Squeeze Indicator
The indicator is built on three components. Here are these:
1. Bollinger Bands
Bollinger bands measure price’s standard deviation over time. This is a measure of the range of the closing price for each day in the market.
2. Keltner Channel
While Bollinger Bands focus on measuring the standard deviation of price, Keltner Channel measures the size of the price range each day, that is, from low to high. The size of the price range can also be said to be the price of daily candles or bars.
3. Momentum Indicator
However, when the Bollinger Bands leave the Keltner Channel, a squeeze is said to be fired. A trader needs the move’s direction to trade. The Momentum Indicator handles this trading aspect.
How to Read the Squeeze Indicator
You will know if the indicator has a squeeze if there are green and red dots along the indicator’s zero line. With a red dot, you are guaranteed a squeeze condition while a green dot indicates otherwise. The squeeze is fired if you have a green dot after a couple of red dots.
The momentum is indicated with a red and blue histogram. A light blue histogram shows that the above zero momentum appreciates while it shows a dark blue color if the above zero momentum decreases.
However, below the zero line, an increasing momentum is represented by a light red histogram. And the momentum is decreasing if it shows dark red histogram.
The TTM Squeeze Indicator MT4 has some default inputs you can use. However, if you desire, you can modify them:
Here are these:
1. nBB: The default standard deviation setting for the Bollinger Bands is 2, you can change the value here.
2. Price: Set the bar price you want to use for calculating the indicator.
3. nK: The default value for Keltner Channel is 1.5, but you can reset the value with this option.
4. NormalColor: Choose your preferred color for squeezed settings.
5. crossAlert: The CrossAlert option enables you to turn off or on the alert for situations when the momentum crosses the indicator’s zero line.
6. HistabvZeroUpColor: You can set the histogram bar’s color to any color of your choice when the above zero momentum is appreciating.
7. HistblwZeroFallColor: You can use this option to set the color of the histogram bars when their zero momentum is falling.
8. HistblwZeroRiseColor: Setting the histogram bars’ color when their below zero momentum appreciates is possible with this setting option.
9. HistabvZeroDwnColor: Setting the histogram bar’s colors when their zero momentums are decreasing can easily be done with this option.
These are some of the available setting options you can use for setting values and colors to meet your specific needs.
To use the trading tool, select “Insert Analysis Technique” after right-clicking on a chart. Then, select “Squeeze” from the available options. Click “Ok” to display the Indicator.
This indicator isn’t exclusively for trading an instrument but can be used to trade a wide range of instruments that include stocks, bonds, forex, ETFs, and commodities.
Conclusion On TTM Squeeze Indicator MT4
The TTM Squeeze Indicator MT4 will not only help you to understand the market better, but it will also assist you in making wise trading decisions that will impact your trading activities positively.
With personalized settings, you can tweak the tool to suit your needs. And that will contribute in no small way to your overall performance in the market.
And of course, you can try several other tools and indicators available here through this link and help yourself to generate higher income.
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