Master the TTM Squeeze Indicator on Thinkorswim

So what is the squeeze indicator and how do you use it in this video I'm gonna walk you through how to profitably trade squeezes so you can catch huge moves in the market hey how's it going on this channel you will learn the steps it takes to make a full time income trading in the stock market so if you're new here consider subscribing and today we're talking about the squeeze indicator so the basic idea of the squeeze is that it is a volatility indicator and so when something is in a squeeze is a volatility is low and then when it is out of a squeeze the volatility is high so when a stock comes into a squeeze or denoted by the indicator down here these dots become red that is when a stock is in a squeeze and that means that the volatility is low compared to what it normally is and because it's abnormal that means it's gonna have to eventually go back to the norm and in this case that means that there is going to be an increase in volatility and using that we can predict large moves in a certain direction now you can't just use the squeeze alone and just blindly trade these red dots the main goal here is to understand that ok this stock is in a squeeze and I'm going to see a large move here pretty quickly once the squeeze fires and so when you see that you buy into the stock with the squeeze and then once the squeeze happens you can see once these dots down here turn to green and the squeeze takes off you can see that the stock takes off as well and you know again on this one the stock is kind of flat consolidating when it's in a squeeze and then when the squeeze fires or these dots turn green the stock has a large up move again and that is the whole idea of the squeeze to try and capture these kind of moves and predict that these moves are going to happen using this indicator and as well as just general price action and watching the chart using the squeeze this way is trading it like a moment trade so you want to have a stock that has large momentum and this stock right here is Amazon being a gross stock this stock has a ton of momentum so just about every time that it has a squeeze it's gonna make a large move to the upside because it's just consolidating or catching its breath before it makes that next run higher squeezes don't always just fire to the upside but the idea here is that generally they will fire the direction of the trend so with these three squeezes we can see on the chart right here these squeezes all fired long and this last squeeze that we had where you can see that these dots were red the squeeze did fire the other direction but you can see that the squeeze still signaled the beginning of a huge down move that Amazon has had over the last couple weeks you will see that on the indicator down here there are also four different colored bars coming off of the green dots and so these are momentum bars they signal where the momentum in the stock is going based on this squeeze indicator and volatility these teal bars mean that the momentum is up and that it is above the zero line you can see that down here if we go all the way across over here on the right it says zero and so that means that the you know the momentum is either positive or negative and then what this indicates the difference between this color and then the dark blue color is that on the dark blue color the momentum is decreasing even though it is still positive and then the teal color or the light blue color the momentum is positive and increasing and then on the flip side the red is the momentum is negative and it's decreasing and then the yellow is that it is negative but it is increasing and so you can see that these help you gauge where the momentum in the stock is going and if it's gonna potentially go up or down the most powerful way to use this kind of oscillation and - indicator with the squeeze if we zoom in on this squeeze right here you can see that the momentum even though this stock has had this up move and then it's really it's really in this bull flag right here so this is a really strong rice pattern that you really want to be able to spot is very powerful with these squeezes Amazon here has just made a large move after earnings and is now consolidating you see that the momentum was really strong to the upside and now the momentum is now decreasing but because the momentum is decreasing but the stock is actually is really just staying flat here that is a really strong set up for a squeeze you can see that we have a squeeze that begins to initiate here by those red dots and that is when you want to be buying it you want to be buying it here when you see this squeeze happen and you see that the stock is just kind of sitting there as the momentum is decreasing because once this momentum finishes decreasing and it starts increasing you are going to start getting a large or potentially large move to the upside and we can see that by once this starts to increase you can see that Amazon begins to take off here this is really a prime set up for the squeezes not everything will look like this you'll get squeezes in markets that are just chopping all over the place and you don't really want that you want the market to look like this where it's just gone up and it's kind of sitting there and that squeeze develops and the momentum decreases into the squeeze and then once that squeeze is gonna potentially fire and the momentum changes that's when you're gonna get your large moves zooming back out here you can see that Amazon had this doubt large down move and then it moves back up into this squeeze this squeeze formed here and this is where you would want to be starting to pick up the trade now a another big thing that is really a strong tell that you're gonna get a potential strong move is that Amazon is sitting at practically all time highs levels and just setting that squeeze up so because it's just budding its head against that large resistance and setting up this squeeze that means that once it breaks through into all-time highs there are gonna be tons of people wanting to buy it and so you're already gonna be in the stock before it breaks there and you're gonna get that added large move in your favor moving on to this next squeeze right here we can see that Amazon after that move Amazon sells off and begins to go into that flag out pattern again now this pattern is definitely not as strong as the last one but again Amazon has come up and then is kind of sitting at a flag out price and this is what happens after big stocks make large moves like this people are gonna sell and take some of their profits now it is really important to understand that here some profit taking happen and Amazon had a few really red days but you can see that Amazon then sat here for a few days and just consolidated and you would have seen this squeeze developed down here and that's when you would have wanted to look to be buying into this and realizing that you know hey this stock is still insanely strong and this is just a pullback and a strong consolidation before this next move and the squeeze down here is telling me that momentum has decreased and then once it begins to increase even though you can see down here the there's a tiny red bars meaning that the momentum was negative for a little bit that is okay the momentum was decreasing and it just got negative for a little bit the still the main idea is once it flips you can see that this momentum right here there's a tiny little yellow bar saying that the omentum is still negative but it is now moving to the upside that is essentially right at this bar right here and so that would be a very strong signal bar to get long now the main key here is that the indicator and the price action are telling you the same thing this bar right here is a very bullish bar and just looking at the chart alone this looks like a breakout now looking at the squeeze indicator here this looks like a very strong squeeze setup the momentum has come down the momentum is now shifting higher it is still in a squeeze and it wants to go up and it's probably gonna want to start going up and these both being in alignment are a key very important thing to getting into squeezes that actually work plenty of squeezes don't work it is all about finding these squeezes that line up perfectly and are saying the same thing this squeeze right here is saying this is gonna go long or the momentum is gonna go higher the stock right here is saying that the momentum or the price is gonna go higher and that's really what you want to be looking for these trades are gonna make you great profits when you trade them with either shares or options this next squeeze over here is zooming in on it is definitely kind of a dud and I want to show you why this is not necessarily a trade you want to take the stock has made that last run up from that last squeeze you're gonna want to be looking for that next squeeze to get in and seeing where the stock consolidates now the momentum here has come down and you do have those red dots forming showing you that that squeeze is happening but you don't really have that kind of flag out price action sure you kind of have it here but the stock is then sold off and come back up and so unlike the last two it's not a really perfect alignment of pattern and you can see that once the squeeze fired from right about here the stock had already made most of this this move that had this is definitely more of a swing trade right here and that's not what you're looking for with the squeeze with the squeeze you're looking for this on a flag out here or this consolidation period and then this move afterwards once the squeeze has told you that you know I need to get in here and then I'm gonna be able to capture this move this squeeze only told you to get in about here and that would be you know potentially at the end of the day and so this was not a strong move here for you to make much money off of this is not what you're looking for when you're wanting to trade the squeeze you want to look for those or really consolidation patterns with the price of the stock and the squeeze indicator lining up and telling you the same thing the squeeze here is telling you that yes the momentum is going to go higher and it's going to be great but the stock has already made that move here and so those two are not in alignment and so this squeeze is kind of a dud but looking at the chart here you can notice that we did have this strong up move and then another flag out pattern establishing and you can see that there's no squeeze developing here and so how you trade this this is essentially a smaller time frame type of squeeze and so what you're gonna want to do here is you're gonna want to go into a smaller time frame and we're gonna see that there is a squeeze here that you would still be able to capture this already hefty move here from about 1900 to 2000 so what I'm gonna do here is go into a a hundred and ninety five minute chart and we can zoom in on that section now one hundred and ninety five minute chart is essentially half a trading day a trading day is six and a half hours long one hundred ninety five minutes is half of that and so that essentially makes it so two bars is one trading day most people do you know hour-long charts or two hour-long charts those don't fit into a trading day very well it's a lot better to break your chart up in the bars that fit into a daily or into a trading day perfectly so you can see so looking at the chart here is that trade that we were looking at so zooming in on this we can see that there is this squeeze here down here we have the squeeze forming and after this large up move and that flag out that we were looking at right so here is that squeeze and you can see that it's this is this was all-time highs right here at that moment and it's hit all-time highs it's sold off a little bit but it came right back up here and it's you know it's just consolidating and you get the squeeze indicator telling you that momentum or volatility is deep creasing here and that once the volatility expands again you're gonna get a potentially large move in a direction again we have all those things lining up momentum was higher the stock was higher momentum is now decreasing and the stock is decreasing a little bit you can see but really overall over this time frame it really didn't decrease that much we want to see the squeeze shift from momentum and you can see that happened in this area and that gives us plenty of time but in this area to pick up either shares calls spreads whatever you're wanting the trade here and it allows you to capture this large move once that momentum really takes off and pushes Amazon higher into more all-time highs now I'm sure you're wondering when do you exit how do you know that this move here is over because once you get you can see down here once this momentum shifts the stock is gonna go down right or this indicator to eventually tell you that you're you can potentially lose a lot of your profits and so what you want to do here is use Fibonacci extension so if I turn on my Fibonacci tool I can take a Fibonacci rice extension from this swing here that was right before the squeeze and we can see that if I add the two six one eight which is another strong resistance level this is going to give you levels of resistance to sell your trade now if you're new to Fibonacci I will link a video on Fibonacci and how to use this in your trading but here the main thing is that you can see using using this quick drawing tool we can see that we probably want to take profits at this level and this level these are two really strong resistance levels you can see that here Amazon blew right through this one level one key indicators showing that it will probably do that as you can see down here there is a large amount of volume compared to what it had before these blue bars down here are and with these huge up moves here you can see that there is a ton of volume pushing through that six one eight level and so that is going to potentially push the stock higher but definitely once you get to this two six one eight level you want to be really aware that you're probably gonna have the trend change or end there or at least have a profit taking pullback and so if you're buying all the way down here you're definitely gonna be wanting to sell ninety percent or take all of your profits because chasing or getting greedy for more than this is really going to make you a losing trader in the long run sure you can have moves that are insanely big and that can get you insane 5x returns but a trade like this is going to make you a very profitable trader if you can get these every time or get these even 50% of the time you can see that if you tried to chase farther than the two six one eight level the stock then quickly as it hit that level it sold right off and gave back almost all of your profits that you would have had and holding through a pullback like that really sucks if you've just made a ton of money and potentially double or triple your options a big key in finding these kind of stocks is seeing that they are in a strong trend in the long term so or Amazon here if we zoom out into a daily chart showing the last year you can see the is a in a large uptrend now it's doing that to a weekly chart you can see that it is in a large uptrend again this is really important to align everything with your trading you want to be trading with the trend and having Amazon being in a strong overall trend is just gonna make it a lot easier for you to have those winning trades more consistently now you can see that this squeeze indicator is also here on a weekly chart and if we look at the last weekly squeeze you can see that Amazon did amazing off of it and everything for the squeeze aligned so you don't have to necessarily use this on a smaller time frame you can use this on a weekly chart just about everything aligned here on this squeeze the price action had a up move and then it began to chop sideways for a while and you can see that squeeze on a weekly chart developed and then once the momentum started to turn positive right about here you would be wanting to look to buy or go along Amazon and you can see the aftermath of this squeeze firing once this squeeze fired and this momentum happened Amazon just about doubled and so even holding just shares alone grew as squeeze like this can be extremely strong and can make you a ton of money hey thanks for trying this video I hope you found it useful in my next video right here I will show you how to set up a scan so you can find these squeezes a lot easier other than just looking at charts all day now if you want to just learn more about the stock market make sure to subscribe and if you have any questions don't be afraid to ask them any comments below

Channel: Riley Coleman

Views: 218,798

Rating: 4.9111609 out of 5

Keywords: ttm squeeze, ttm squeeze indicator, ttm squeeze indicator thinkorswim, ttm squeeze indicator strategy, ttm squeeze thinkorswim, ttm squeeze strategy, ttm squeeze explained, how to use the ttm squeeze indicator, john carter ttm squeeze indicator, ttm squeeze john carter, master the ttm squeeze indicator on thinkorswim, how to use the ttm squeeze indicator on thinkorswim, learn to use the ttm squeeze indicator on thinkorswim, using the ttm squeeze, trading with the ttm squeeze

Id: V5ecnIcdtd8

Length: 18min 41sec (1121 seconds)

Published: Tue Nov 06 2018