TTM Squeeze Indicator Explained

John Carter's TTM Squeeze watches for the market's coiled-spring moment: Bollinger Bands contracting until they fit inside the Keltner Channels. That compression means volatility is abnormally low — and volatility mean-reverts explosively.

How It Works

• Squeeze ON: both Bollinger Bands inside the Keltner Channels — energy building.
• Squeeze OFF (the 'fire'): bands expand back outside — the move is launching.
• A momentum histogram indicates the likely direction of the release.

How to Trade It

The playbook: wait through the squeeze, enter on the fire in the momentum histogram's direction, ride with a trailing stop sized to the expanding volatility. Multiple consecutive squeeze bars generally precede larger releases.

Building It in Setup.Cash

Add TTM Squeeze in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See Squeeze Pro for the graded version. For the full category overview, see the volatility & statistics library guide.

Volatility indicators qualify trades rather than generate them — backtest your system with and without this filter and compare the drawdowns.