BB Squeeze indicator

[januson 10]

Hello

I've earlier received some help regarding the indicators used in TTM Squeeze video, I've created 2 screenshots; one displaying the BB Period:20, SD:1. Keltner Channel Period:20, ATRPeriod:10, ATRFactor:1,5

- As I understand the periods, sd and atr would those then be correct?

 

In the other attachment I've adjusted BB SD:1 to SD:1.5 and it gives me a much cleaner cut.

 

This is all indicators I know I know etc etc... But the best way to learn imho is to study what others have been doing in the past and trying to reimplement this into ones own world.

 

So if anybody could take a look, comment and tell me if I'm doing something wrong or point me in another direction I would be happy

 

Kind regards

[walterw 10]

januson : remember that the squeeze doesnt give the trigger... it just tells you the market context (sleeping or trending ) its the momentum or some other similar oscilator that gives the trigger... look at that cci how it put you on a short before the plunge... then you could cover on the first bar inside the bb.... just an idea.... cheers Walter.

[dalby 10]

januson, the classic accepted settings are this

 

BBands : 20, 2

Keltner : 20, 1.5

[Eric Johnson 10]

Hi, I have duplicted most of the TTM squeeze for Quotetracker. I will do my best to give a brief overview. The squeeze is generated as you show, using BB 20,2 and keltner 20,1.5 or 2 . They seem to make adjustments for what market they are trading (forex, stocks, etc.).

The entry is after a squeeze, and there is a 21 and 8 EMA crossover. Then confirmed by 2 TTM colored bars confirming direction. They are generated by a 6 and 8 EMA crossover. Then they wait for the pullback to the 8 EMA to enter. In volitile markets they are using box channel breakout stops after a squeeze.

Also there is a momentum indicator/oscillator 5,22 . It is used to confirm entry direction by color of bars. It is also used to predict breakout direction. Finally it can signal early exit if momentum reverses.

For stops and profit taking watch some of their videos. They scale out and use 2 opposing colored TTM bars for exit.

You will see they use scalper alerts, I use small keltner channel price breakouts and other things. They have a video showing how they generate theirs as confirming trend highs and lows.

Their value indicator is a very fast moving oscillator. I am using a Bressert DSS , but think this is uncommon.

This system has a few things you need to have the details straight to use it well. I have watched every one of their videos for the last 4 months, I like what I see. For charts and info see http://www.tradethemarkets.com for new people to the idea.

[nburgess 10]

Basically the TTM Squeeze fires when the Bollinger goes from inside to outside the Keltner channels. What I have found is that it helps to change the width of the Keltner channels depending on the volatility of the markjet that day. The 20/1.5 default is good, but I've also found changing the 1.5 value to anything between 1.5 and 2 can also give very good results. I tend to go for a higher value when the markets are more volatile otherwise you find you never get a squeeze signal.

[trade4dough08 10]

Try to use another filter as well when using the BB squeeze.

[dowtrade 10]

Try changing value 20 to 15, sometimes the squeeze fires even sooner

[helitrader 10]

Hi,

 

I've been trying to apply the BB squeeze indicator to the major curreny pairs. Already using it on the Ym tick charts and it works very well. I'm experimenting with different input parameter values for to improve the win rate. Does anyone have any suggestions for the best setting to use for the FX pairs?

 

thanks,

helitrader

[Thomas66 10]

Hi,

 

I am also trying the BB squeeze indicator, have some success using a 233 tick chart, BB settings close,20,1,5,2,1 red,blue. Have not tried any different yet.

 

Have applied it to YM but not traded, what timeframes do you use?

 

Thomas

[helitrader 10]

Hi,

 

I use it on 233 and 512 tick charts and also on 5min charts. I don't tend to use the indicator to time entries and exits (I don't use any indicator that way, since most indicators lag price). I use it more to give me a heads up as to whether price is consolidating or about to break out, in which case I'll use price action to time my entries.

 

helitrader

[Minis Trader 10]

I was listeningt o one of the videos from John Carter recently and he was also saying that in this volatile market you have to get in before the squeeze fires off because if you wait the signal is too late and the move has been made.

[kingfish88 10]

anyone knows this "new" Squeeze?

 

http://paintbarfactory.com/

[thehaul 10]

I'm pretty sure this was posted here at some point but here it is for Easy Language. It looks like the new squeeze... not sure if it is though and I didn't code this myself either. Don't get mad at me!

 

Inputs: Price(MedianPrice), price2(MedianPrice),Price3(H/3+L/3+C/3),

Length(18),

Length2(11),

Length3(29),

Length4(7),

Style(1),

nK(1.5),

nBB(2),

AlertLine( 1 ),

BuyColor1(blue), BuyColor2(darkblue),

SellColor1(red), SellColor2(darkred),

NormalColor(Red),AlertColor(Blue),

CounterTrend(true);

 

vars:FastVal1(0), SlowVal1(0), Diff1(0),

FastVal2(0), SlowVal2(0), Diff2(0),

FastVal3(0), SlowVal3(0), Diff3(0),

FastVal4(0), SlowVal4(0), Diff4(0),

AvgDiff(0), AvgDif(0), poles(4),

CCIValue(0),DownCT(0),UpCT(0),SDev(0),ATR(0),LHMult(0),Denom(0),BBS_Ind(0);

 

if Style = 0 then begin

{Zero Line - BB Squeeze}

if ( barnumber=1 ) then

Begin

If minmove <> 0 then

LHMult = pricescale/minmove;

end;

 

{-- Calculate BB Squeeze ----------------------}

ATR = AvgTrueRange(Length);

SDev = StandardDev(Price, Length, 1);

 

Denom = (nK*ATR);

If Denom <> 0 then BBS_Ind = (nBB * SDev) /Denom;

 

If BBS_Ind < Alertline then

SetPlotColor(1, NormalColor)

else

SetPlotColor(1, AlertColor);

 

{-- Plot Index & Alert Line -------------------------}

Plot1(0, "Squeeze");

end;

 

if Style = 1 then begin

{Zero Line - Gauss filter}

value1 = Gauss(Price3,Length3,3);

 

if (Value1) > (Value1[1]) then

SetPlotColor(1, BuyColor1);

if (Value1) < (Value1[1]) then

SetPlotColor(1, SellColor1);

SetPlotWidth(25,50);

Plot1(0, "Squeeze");

end;

 

 

{Histogram}

FastVal1 = Gauss(price, 8, poles);

SlowVal1 = Gauss(price, 21, poles);

Diff1 = FastVal1 - SlowVal1;

FastVal2 = Gauss(price, 13, poles);

SlowVal2 = Gauss(price, 34, poles);

Diff2 = FastVal2 - SlowVal2;

FastVal3 = Gauss(price, 21, poles);

SlowVal3 = Gauss(price, 55, poles);

Diff3 = FastVal3 - SlowVal3;

FastVal4 = Gauss(price, 34, poles);

SlowVal4 = Gauss(price, 89, poles);

Diff4 = FastVal4 - SlowVal4;

AvgDiff = (Diff1+Diff2+Diff3+Diff4)/4;

 

plot2(AvgDiff,"DiffHisto") ;

setplotwidth(2,2);

if AvgDiff > 0 then

if AvgDiff > AvgDiff[1] then

setplotcolor(2,BuyColor1)

else

setplotcolor(2,BuyColor2) ;

 

if AvgDiff < 0 then

if AvgDiff < AvgDiff[1] then setplotcolor(2,SellColor1)

else

setplotcolor(2,SellColor2);

 

 

 

{+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++}

{ Counter Trend Mode}

if CounterTrend = true then begin

CCiValue = CCI(13);

 

Condition1 = ccivalue[1] > 50;

Condition2 = CCivalue < 50;

Condition3 = CCivalue[1] < 100;

Condition4 = CCiValue > 100;

Condition5 = AvgDiff > 0;

Condition6 = AvgDiff[1] > 0;

Condition7 = AvgDiff[2] > 0;

Condition8 = ccivalue < 100;

 

if Condition1 and Condition2 and Condition5 and condition6 and condition7 then begin

setplotcolor(2,SellColor2);

DownCT = 1;

end;

 

if DownCT = 1 and AvgDiff < 0 then DownCT =0;

 

if DownCT = 1 and Condition8 and Condition5 then setplotcolor(2,SellColor2);

 

if DownCT = 1 and Condition3 and Condition4 then begin

setplotcolor(2,BuyColor1);

DownCT = 0;

end;

 

Condition11 = ccivalue[1] < -50;

Condition12 = CCivalue > -50;

Condition13 = CCivalue[1] >- 100;

Condition14 = CCiValue < -100;

Condition15 = AvgDiff < 0;

Condition16 = AvgDiff[1] < 0;

Condition17 = AvgDiff[2] < 0;

Condition18 = ccivalue >-100;

 

if Condition11 and Condition12 and Condition15 and condition16 and condition17 then begin

setplotcolor(2,BuyColor2) ;

UpCT = 1;

end;

 

if UpCT = 1 and AvgDiff > 0 then UpCT =0;

if UpCT = 1 and Condition18 and Condition15 then setplotcolor(2,BuyColor2) ;

if UpCT = 1 and Condition13 and Condition14 then begin

setplotcolor(2,SellColor1);

UpCT = 0;

end;

 

end;

 

 

haul it!

[olie1018 10]

is the BB squeeze for tradestaion or esignal?

 

jim

[thehaul 10]

It's easy language so, it will work for either tradestation or multicharts.

[olie1018 10]

anyone have the BB Squeeze for Esignal?

 

jim

[Eric Johnson 10]

Hi, as I posted earlier, the TTM signal system is more than just the BB squeeze. It includes the MA crossover, John likes 2 agreeing TTM color bars, and to enter on a pullback to the 8 EMA. Also momentum needs to be correct, and stay supportive.

For the volatile markets he is waiting for the squeeze and entering on channel breakouts of price. I have decided to post my entire system for Quote Tracker, that has a version of the TTM squeeze on it with a market reversal system added. I will do this on another thread called "technical indicator tools"

Edited December 27, 2008 by Eric Johnson

[olie1018 10]

does the BB Squeeze work on Esignal?

[olie1018 10]

does the BB Squeeze work on Esignal? i loaded the code and all i get is a line 12 syntaxerror missing: before statement: NormalColor (Red) , AlertCol or(Blue) ,

 

any advice on how to fix this?

 

jim

[jess82 10]

is that an extra tool that we can’t find usually in platforms? According to some posts in here, it seems this tool doesn’t work with every platform. Is this really useful for our trading performance?

[ReignMan 10]

Hello, I recently read a book by John Carter where he promoted a TTM Squeeze indicator. I would like to see if it actually works. Unfortunatelly, he charges close to $500 for this program. I am a new treader and do not have this kind of money to "see" if this works. I was wondering if anyone knows if there is a free version somewhere that I could download. I use eSignal.

 

Thank you very much.

[dave63 10]

Eric, did you ever upload your system for quote tracker?

 

Dave

[Eric Johnson 10]

Hi, yes it is posted and got moved to the programmers thread area as "technical indicator tools".

For sure check out the free videos on their site, if you watch enough of them you will get a good idea about which charts work well. The Quotetracker set I put together is pretty close for a freebie, but QT needs a backfill quote feed, or a few of the original download symbols will backfeed day bars for free (MSFT). All of my other indiactors can be hidden in the indicator menu to focus on the squeeze system.

[BennyHey 10]

For what it worth ReignMan I have tried and used the BBSqueeze both the PBF and John Carter version.

 

In my opinion they are not very good. Hubert Senters from TTM says they are as reliable as a flip of a coin. Can't remember where I read that but its what he said.

 

If you are using eSignal you can add on multicharts for $99 a month. (Don't expect to get any tech support) and use all the TTM indicators. Squeeze, Scalper Alert, and Trend which are under the Trading Indicators section of this website.

 

I think eSignal is a very reliable data sever but C++ language is not as good as the easylanguage. There are a few paintbar studies for EasyLanguage that don't code well(or at all) for eSignal.

[BennyHey 10]

I was surfing around and found the squeeze indicator for eSignal.....LOL

 

What an incredible coincidence. I was like, didn't someone JUST ask for that? Let me know if there are any errors in the code and I will take another look at it.

 

 

function preMain() {

setStudyTitle("FPSqueeze");

setCursorLabelName("FPSqueeze", 0);

setDefaultBarFgColor(Color.blue, 0);

setPlotType(PLOTTYPE_HISTOGRAM,0);

setDefaultBarThickness(4,0);

 

//addBand(0,PS_SOLID,1,Color.black,"zero");

 

var BBlow=null;

var BBhigh=null;

var KClow=null;

var KChigh=null;

var Mom=null;

var vHigh=null;

var vLow=null;

var vClose=null;

 

var fp1 = new FunctionParameter("nMA", FunctionParameter.NUMBER);

fp1.setName("Squeeze Moving Average");

fp1.setLowerLimit(1);

fp1.setDefault(20);

 

var fp2 = new FunctionParameter("nSD", FunctionParameter.NUMBER);

fp2.setName("Standard Deviation");

fp2.setLowerLimit (1);

fp2.setDefault(2.0);

 

var fp3 = new FunctionParameter("nColorSqueeze", FunctionParameter.COLOR);

fp3.setName("Squeeze Color");

fp3.setDefault(Color.red);

 

var fp4 = new FunctionParameter("nColorAction", FunctionParameter.COLOR);

fp4.setName("Action Color");

fp4.setDefault(Color.lime);

}

function ATR(nInputLength) {

 

var dSum = 0;

 

var dH = high(0, -nInputLength);

 

var dL = low(0, -nInputLength);

 

var dC = close(-1, -nInputLength);

 

if (dH == null || dL == null || dC == null) {

 

return;

 

}

 

for (i = 0; i < nInputLength; ++i) {

 

var vTrueHigh = Math.max(dH, dC);

 

var vTrueLow = Math.min(dL, dC);

 

var vTrueRange = (vTrueHigh - vTrueLow);

 

dSum += vTrueRange;

 

}

 

dSum /= nInputLength;

 

return dSum;

 

}

 

 

function main(nMA, nSD, nColorSqueeze, nColorAction) {

 

//Bollinger Band Variables using 1.4 Standard Deviation

var myStudy1 = upperBB (nMA,nSD);

var myStudy2 = lowerBB (nMA,nSD);

var momStudy1 = ema(10,mom(12));

var macdstudy = new macdHist(12,26,9);

 

BBlow = myStudy2.getValue(0);

BBhigh = myStudy1.getValue(0);

Mom = momStudy1.getValue(0);

macdvalue = macdstudy.getValue(0);

 

 

 

var BarCntr;

 

var nRangeFactor = 1.5;

 

 

 

if (getBarState() == BARSTATE_NEWBAR)

 

BarCntr += 1;

 

 

 

if (BarCntr < nMA) {

 

return;

 

} else {

 

var dKeltnerBasis= call("/Library/KeltnerEMA.efs", nMA);

var dATR = ATR(nMA);

KClow = (dKeltnerBasis - (nRangeFactor * dATR));

KChigh = (dKeltnerBasis + (nRangeFactor * dATR));

}

//Logic to create red or blue squeeze signal

if ((BBhigh <= KChigh) || (BBlow >= KClow)) {

drawShapeRelative(0,0,Shape.CIRCLE,null,nColorSqueeze,Shape.TOP);

}

if ((BBhigh > KChigh) || (BBlow < KClow)) {

drawShapeRelative(0,0,Shape.CIRCLE,null,nColorAction,Shape.TOP);

}

 

 

 

if (Mom > 0) {

setBarFgColor(Color.blue);

}

else {

setBarFgColor(Color.red);

}

 

drawTextPixel( 1, 93, "Squeeze ", Color.black, null, Text.RELATIVETOLEFT | Text.RELATIVETOBOTTOM | Text.BOLD, "Arial",10 );

 

return ((Mom+macdvalue)/2);

 

}