TTM Squeeze: Predicting Market Breakouts

Discover the TTM Squeeze: A Powerful Trading Tool for Predicting Market BreakoutsThis podcast episode delves into the TTM Squeeze, a potent indicator for traders aiming to forecast substantial market movements. Originally popularized by John Carter, this tool identifies when a market is gearing up for a significant breakout by recognizing cycles of market contraction and expansion.The TTM Squeeze utilizes Bollinger Bands and Keltner Channels to pinpoint moments of compression, signaling an impending breakout, either up or down. Red dots indicate a coiling market with low volatility and building pressure, while the first green dot signals the squeeze has fired and volatility is expanding again. The direction of the breakout is confirmed by a momentum histogram, with blue bars above zero suggesting an upward breakout and purple bars below zero pointing to a downside move.Barcharts Senior Market Strategist, John Rowland, showcases how to interpret these signals, emphasizing the use of stacked exponential moving averages to confirm predictions and avoid false alarms. This method is particularly beneficial for short-term, options, and swing traders, enabling them to anticipate major market shifts before they occur.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.