BB Squeeze (Version of TTM Squeeze)

[ashokkuttan 10]

Hi,

 

I'm new to this forum and had downloaded the _BBSqueeze indicator which was something similar to TTM SqueeZe. I have seen Carter's video on the Squeeze itself and he says that the squeeze will turn a first red dot and that will be his indicator either go long or short.

 

I used the _BB Squeeze and when i applied it to ADBE today, the signal was totally wrong. Between the time frame 10:40 to 11:40 the stock kept going higher, however ths squeeze was giving a faded green color ( should indicate a price slowdown).

 

Is there anything wrong with this particular squeeze indicator? Is there anything that is more upto date that mirrors the TTM indicator?

 

Any help is greatly appreciated.

 

By the way this site rocks!!!!

 

Thanks

Ash

[ashokkuttan 10]

By the way it was for Trade Station.

 

Thanks

Ash

[OAC 10]

I have seen enough Carters and Senters videos to tell you that you need to take the directional indication with a grain of salt. The squeeze indicator basically warns you that there may be a directional move ahead and it does not trigger a trade by itself.

[dcstrategies 10]

can you post a picture --you may have the wrong setting or timeframe for adbe.

all indicators do not work exact--for instance with 50000 shares candles the squeeze would have given a great signal at your timeframe, but on a 1 minute it was a little choppy. backtest and forward test before actually trading--post a pic if you can.

Edited March 20, 2008 by dcstrategies

[ashokkuttan 10]

Attached is the screenshot. As you can see, the market kept rising between 10:30 and 11:40 but the squeeze indicator was going down with faded color.

 

Maybe I'm interpreting the whole TTM Squeeze indicator wrong.

pic.doc

[OAC 10]

It appears to be me there are two components to the Squeeze Indicator:

(1) the BB-Keltner Squeeze part which is indicated by a series of red and blue dot at the zero line. (2) A momentum histogram that oscillates around the zero line. Between 10:30 to 11:40, the price was making higher high and the momemtun histogram was making lower high, that is called divergence.

The divergence did resolve itself shortly after 11:40 by the subsequent price decline.

[thrunner 10]

dcstrategies' suggestion is correct, but you can always find a time frame to fit an indicator after the fact

The point is that it is unlikely the TTM branded indicator is any better, it is a limitation of any indicator to give the signal you 'expect' at any given setting.

[ashokkuttan 10]

Yea, I guess indicators are always lagging and on hindsight it would have worked great. While comparing both this _BBSqueeze and TTM Squeeze, it does seem the TTM squeeze has more parameters than the one we have here.

 

Does anyone have the actual version of TTM that is currently used?

 

Thanks

Ash

[OAC 10]

As far I know, the momentum part of the TTM squeeze indicator is same as a standard one. The squeeze part is a little different in that in addition to the Keltner-BB part, it also has an ATR(average true range) component. Personally I don't think it is that important because the indicator does not trigger a trade by itself.

[SPATEL1982 10]

most people on here seem sceptical about ttm products. Is there anyone here who uses the ttm squeeze for example successfully? thanks.

[OAC 10]

most people on here seem sceptical about ttm products. Is there anyone here who uses the ttm squeeze for example successfully? thanks.

There are thousands of indicators out there. For each indicator, some will find it useful to add to their trading toolbox and others will not. So if one person tell you that he or she has been using the TTM Squeeze indicator successfully and what will that tell you ? Absolutely Nothing.

However, the TTM Squeeze indicator is behind a valid concept of the volatility cycle going from high to low and low to high. As we know, the market is full of false moves. My biggest criticism of the TTM Squeeze Indicator is that it has no way of filtering the false moves. In my own trading , I prefer to use an indicators that measure the range of current bar is greater any of the previous 9 bars and the volume of the current bar is greater than the average volume of the last 10 bars.

Since volume is used as a filter, there is less chance of a false move.

[3monkeys 10]

[Disco Scottie 10]

You should have gone short around 12:00... you just have to learn how to read it properly.

[ashokkuttan 10]

OAC

 

Did you add those volume parameters as part of Squeeze or did you build a seperate indicator for range and volume.

 

Would you mind sharing that indicator?

 

Thanks

Ash

[OAC 10]

Sorry I have them as separate indicators and they work fine because both are on audio alerts. Plus I don't use TradeStation.

[littlefatmamat 10]

I have the dearly-paid-for TTM indicator, and ran the open source squeeze indicator head to head with the TTM squeeze. The difference is negligible. Both will give false signals. You might be able to tighten it up by changing the length, bollinger band and keltner channel settings on each time frame you use. I tried that and it did help some. But I really don't pay that much attention to the squeeze any more.

[Guest forsearch]

 

The reason you see the "dummy" notation is even more insidious.

 

It's because TTM "re-engineered" this indicator directly from the TS forums, and forgot to remove this line of test code.

 

You're welcome to go to the TS forums and see the original from 2003 before TTM purloined it for themselves.

 

-fs

[Guest forsearch]

As far I know, the momentum part of the TTM squeeze indicator is same as a standard one.

 

Nope. It's actually the delta of price from the midpoint of a Donchian channel.

 

The squeeze part is a little different in that in addition to the Keltner-BB part, it also has an ATR(average true range) component. Personally I don't think it is that important because the indicator does not trigger a trade by itself.

 

Ummm, OK. But mistaken again.

 

Keltner Channel (KC) is based on ATR. Bollinger Bands (BB) are based on Standard Deviation. The setup is when the BB moves inside the KC - a so-called "Squeeze" . It denotes a period of low volatility.

 

Then when the BB moves OUTSIDE the KC, the trade is triggered. This means that volatility has increased (remember that BB is a measure of Standard Deviation, hence, volatility)...

 

Go with the trade in the direction of the prevailing momentum as determined by price or the histogram, or whatever confirmation you choose.

 

-fs

[OAC 10]

Those comments were not my own, they came from a John Carter/Hubert Senters's video.

[Guest forsearch]

Those comments were not my own, they came from a John Carter/Hubert Senters's video.

 

Typical.

 

-fs

[Bam-Bam 10]

I programmed this indicator so it displays only the alert line and not the histogram. I have been running the alert line at the bottom of my chart window to see how the trade signals compare with my charts.

 

So far, this indicator lags my other lagging indicators by about two bars. In a choppy market like this week, it puts you into a trade almost exactly at the point of reversal.

 

When big, smooth moves happen, it is great to look back and say, "Wow, that BB Squeeze really worked for that move." Of course, there were two or four other signals that would have put you in the move a lot sooner.

 

It is a nice confirmation signal for these bigger moves,

 

Bam-Bam

[Guest forsearch]

Bam,

Can you illustrate with a photo the lagginess of it? Just curious which of your other laggardly indicators would be a better entry trigger.

-fs

[Bam-Bam 10]

fs -

 

Here's a for instance for you. This is a 2-minute chart of the YM from April 28. The chart has a 8-period EMA on price, bar color based on closing above this EMA (+/-), MACD, Chaikin Oscillator, and BB Squeeze. Default settings for all indicators.

 

There were two squeezes triggered in the timeframe.

 

Squeeze 1:

- MACD crossover 3 bars before trigger

- slope on EMA went negative 2 bars before

- bar color changed 3 bars before

- Chaikin Oscillator peaked 7 bars before

 

Squeeze 2:

- MACD crossover 9 bars before trigger

- slope on EMA went negative 9 bars before

- bar color changed 12 bars before

 

Squeeze 2 shows an example of how in a choppy market, you would enter just before the market turned back up.

 

Some caveats: I don't really trade off of oscillators, so I may not be interpreting them properly. Also, my program may have a greater than or equal rather than simply greater than on the off chance that the Standard Deviation and the ATR is the same to umpteen decimal places. Finally, I ain't no programmin' genius, so Blu-Ray's or the TTM stuff may work better.

 

The two bar lag (minimum) is consistent across chart periods (min, ticks, volume).

 

[Bam-Bam 10]

fs -

 

In the interest of equal representation, here's a couple of examples of the "Wow, that BB Squeeze really worked for that move."

 

The chart has the same indicators as above. This one is a 5-minute from April 25 YM price action.

 

Squeeze A:

- MACD crossover 2 bars before trigger

- slope on EMA went negative 3 bars before

- bar color changed 4 bars before

 

Squeeze B:

- MACD crossover many bars before trigger

- slope on EMA went positive 2 bars before

- bar color changed 8 bars before

 

Same caveats as above message on coding.

 

Hope this helps,

 

Bam-Bam

 

[pattonb 10]

I have discovered the squeeze indicator works better on tick charts, however

the smaller tick charts ( 55,89,144) will provide more false signals. the 233 and 512 have a much better track record.