A powerful volatility-based strategy that helps identify potential breakout opportunities in the market
The TTM Squeeze is a powerful trading strategy developed by John Carter that combines volatility and momentum to identify potentially explosive price moves. The strategy is based on the principle that periods of low volatility (consolidation) are often followed by significant price movements.
The strategy works by comparing two volatility indicators:
A squeeze occurs when Bollinger Bands move inside the Keltner Channels, indicating:
A squeeze release happens when Bollinger Bands expand outside the Keltner Channels:
The momentum histogram helps determine the likely direction of the breakout:
Watch for red dots indicating low volatility and price consolidation.
Check the histogram color and size to determine potential breakout direction.
Enter when the squeeze releases (dots disappear) and momentum confirms direction.
Set stops below recent support for longs or above resistance for shorts.
Higher timeframes (4H, Daily) typically provide more reliable signals.
Confirm signals across different timeframes for better accuracy.
Strategy works best in trending markets after periods of consolidation.
Consider larger positions when momentum and squeeze release align strongly.