BB Squeeze (Version of TTM Squeeze)

[daedalus 10]

Keep in mind the discrepancies of this indicator that no one really seems to remember when using it.

 

John Carter uses it with a 9/21 EMA for bias... if those conflict with the signal he will not enter.

 

Also, if the squeeze fires off on with the momentum histogram NEGATIVE BUT DECREASING IN STRENGTH it is a long not a short and vise versa. Hope this helps.

 

And also keep in mind they use this indicator in a pretty scalpy fashion in terms of cutting contracts lose constantly as it works in your favor... so take that into account when backtesting. I know in the YM they will use like 4 tick initial profit targets to cut half loose, etc.

[daedalus 10]

*edit* Bam-Bam... that's a fantastic post. I almost would take it one step farther... i use to (and still do sometimes) use the squeeze to alert me to consolidation in the market, i mean that is essentially what that indicator does. What about using the MACD cross to signal the entry on either side of the market and then managing the trade based off the momentum indicator on the squeeze. Some simple exit rule, like two decreasing momentum bars in a row or something and you exit. Works pretty well on a 377 tick chart in the nq today... In fact i may give this another go over in some backtesting. Thanks for refreshing the idea!

 

I also think it responds better on tick charts (i think everything responds better on tick charts).