BB Squeeze indicator

[Eric Johnson 10]

Here is my perspective on the usefulness of the indicator. It is not too useful for predicting breakout direction or precisely when a channel will break out. Hence the idea of a coin flip.

The idea behind BB squeeze is that if you review the history of a chart and it shows extended trend runs following periods of decreased volatility (squeeze), then you are increasing predictability. The idea is to find a breakout that will probably stay directionally strong for an etended period. They (TTM traders) stop out plenty, but the runners make the payoff. Mostly it taught me very much about breakouts and how large numbers of traders view the markets. I was traditionally a reversal trader. Good to know when the majority may be seeing a massive breakout, to over ride your reversal setup. The TTM guys make predictions and live trade everyday, and are not going broke doing it. Mostly I am impressed with how much valuable knowledge they give away for free on their videos , it makes them decent in my view.

PS- I was asked where I posted my Quote tracker TTM version for Quotetracker it is the "trading indicators" section link

Edited January 11, 2009 by Eric Johnson

[BennyHey 10]

Hey Eric, I too watch the TTM videos and find a lot of the stuff informative and useful. Have you been a member of the TTM chatroom? If so tell me/us what you thought of it.

 

One thing I DON'T care for is how much emphasis Hubert and John put on buying their indicators and seminars. And the prices they charge are unscrupulous IMO. If a nubie were to take every squeeze that fired off using John's Money Management they would without a doubt LOSE money. There's nothing wrong with selling trading education materials but there is a LOT more to making money trading then following one indicator regardless of other factors.

I would get into this more but I don't wanna have a 4 page long post.

 

Hope u all have a great week, cheers :missy:

[Eric Johnson 10]

Hi, my good friend joined their chat room for a promotional month for like $5. He really got a lot out of it, they teach much more than using their system. They have been at it a long time, as my friend has.

I would say that they have large accounts and using their stop ranges, one would have to be scale down to a smaller scale for a smaller account, probably using ETF's shares rather than futures. They are not overly secretive about their mehtods, or the composition of thier indicator systems. If it were black box I would not be interested.

I my thought about charging is that if you are not ready to develop your own indicators, at least you have the wisdom to pay to learn a system that they are fairly honest about it's usefulness. John says something about backtesting and if it is not good 7/10 times it is not the system for the chart. When you give complex tools away to beginners for free, it can lead to what you mentioned, shallow trading perspective.

At least on this forum people can get tools and perspective.

Edited January 12, 2009 by Eric Johnson

[Eric Johnson 10]

Hello again, was reviewing some of Walter's work on the forex forum and saw that he was using a VT trader indicator to show when a trend is in motions or in chop. The indicator was a version of the rainbow chart indicator.

I thought to show how to use it as a squeeze indicator, by using more standard settings. It is a free platform, and decent with free forex feeds. So my settings are 50 exponential MA, and smoothing 4. Notice how the rainbow gets flat in the "squeeze zones". If I had time to play with this I would compare it to the standard TTM settings and tune it.

For now my point is that after the months have passed, I am still a reversal trader. Most markets reverse far more than they break out, especially if I avoid major events like opening and closings. Also I need to be aware of the squeezes, because they do lead to hard trend breakouts . I prefer to "see" the squeezes with my eyes like I would a formation, because more people will respond to them. Some of Carters squeezes come at unusual times, not obvious to the naked eye, and always a bit delayed.

So that is why I like this rainbow indicator. You can tune it to your time frame. Do you want smaller squeezes to be picked up for scalping? Try the 14 ma setting, or a 200 if you like. The attachment is on a 5 minute chart, but I like having an indicator that is easy to tune to market conditions.