Breakout Indicator (Enhanced TTM Squeeze) | Great for Intraday & Scalping (2023)


This custom ThinkorSwim-platform based Trading Indicator uses the default TTM Squeeze indicator found in TOS and enhances its specific property to give you a Buy or Sell Signal.

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Hey guys, you see here from my trade price, it is May 18, 2023 uh and in this video I wanted to talk about the uh.

Let me open the website.

The TOs breakout indicator right so uh.

It's an enhanced version of the TTM squeeze indicator.

Okay, not going to go into the detail of what the TTM squeeze indicator is.

You can read all about that uh about it online right, but it is available on the Ameritrade think of sim platform uh by default.

So if you go to studies, click on edit and if you type TDM, this is the indicator that shows up double click and you know just apply it, and here it is with the default settings right this one.

So, basically what it tells you is that when the uh, the the histograms are above the zero line right.

This is the zero line right here when the histogram is above the zero line and the Dots here turn into green right.

That means that the squeeze is happening and the prices are likely to move towards uh the upside right and when the histogram is red and the price, and then the in the it's below zero.

That generally means the prices are moving uh down.

Okay and when the prices are moving from this, you know stretched level back towards zero.

That also indicates that the downside pressure is is dying down and the prices are likely to move back up right.

So that's the indicator.


So what I've done is uh.

It's generally a breakout indicator because you know I mean, of course you can use it as per your liking, uh that if you want to use, but the way I have enhanced it is that what I've done is I've taken all this information and instead of looking at the indicator and trying to figure out what's happening, you can actually see it right on the uh on the on the candle sticks itself on the chart itself right.

So when the prices are moving down right, it becomes red and when the prices are moving up, it becomes green right, so uh and when the bars are gray right, that means it's sideways, but most of the time of course, you can see that it's not sideways here it's coming down, but that depends on the sensitivity of the indicator right.

So the way I like to use this indicator actually, let's get into the thinkors and platform and try to pull it up and I'll.

Show you how exactly it works right.

So here is the enhanced version.

We're going to get rid of the original one apply right.

So here is the chart of e-mini Nasdaq futures contract.

It is a 1000 tick chart right.

It's not a time chart, it's a tick chart right.

So if you look at it so, for example, right here right, this was gray, so the first bar turned green right here.

So that's a signal that the prices are moving up.

So if you were to get long right here right again, it depends on your stop loss.

Your profit Target all that stuff uh, but the price moved up from that point onwards right.

This was a little bit of gray right here and from here it showed you a green sorry, a red bar right.

So that means the prices are likely to move down right.

So, depending on your stop loss, if you had taken a position, you might have gotten stopped out or not right.

It moved up around.

Maybe 10 12 points right here and then it dropped uh nicely probably around 50 points right, here's a gray area, and then it turned green right here and then it went back up as well right, so I'll keep on moving towards the right, and you can see so basically all that TDM squeeze indicator information is not on there, but acts actually on the chart itself on the candlesticks itself.

Right I like to trade.

This on the Futures Contract uh, because I like the scalp and the tick chart, probably depicts a little bit better version when it comes to scalping for this kind of uh craving.

But if you can definitely look at into other uh time-based charts as well right, it might not be accurate or it might not be that good.

You might have to play around with it a little bit to see what the perfect settings are for you, given your risk profile and all that, but let's pull out Tesla, for example, right uh, let's pull out, maybe I, don't know! Maybe a one minute chart okay and let me zoom out: let's go back, let's go right here, uh! This is probably not today.

Let's uh there, you go okay, so here is the one minute chart right so depend.

Let's say when the market open.

What happened right so one minute chart fired a green bar right here at the open.

Open is not really a good time to kind of get into a trade because of the wacky movement.

But let's say you take a trade after the first gray right you let the market settle, do whatever it wants to do, and then you'll see what's happening, the first gray, and then you got a red signal right.

So if you short it there, that's about dollar and a half right uh.

This is a green.

So from there the price moved back up.

So one thing that I have done or I think can benefit- is that if you drop some sort of a exponential moving average, let's Okay so let's say, for example, you get back to NQ.

Let's get back into thousand tick chart, let's add some sort of exponential moving average right.

So let's say you got a 50 EMA right, you apply it so now you say that as long as the price is above, the 50 EMA and I get a green bar.

That's a Buy Signal for me and when the price drops below 50, EMA and I get a red bar.

That's a sell signal for me right.

So let's say you start at 10 o'clock right.

You ignore the first 30 minutes right.

So probably this was your first signal.

This probably would have stopped you out.

This one went nice right about 10 12 points, not bad, depending on your stop loss, all that stuff kept going back up.

So if your stop loss was the low of the Year entry bar, it did not get hit right.

So that was not bad.

This one right here fired.

Another signal went up nicely, actually all the way up as well uh this one you would have ignored, because the price was above the EMA.

So you would not have taken this short right, so you would have missed this one right, but that's some sort of a discipline that you need to introduce or if you want some sort of help by overlaying an EMA on your chart right.

Definitely, you would have taken this one.

You would have ignored this one right.

So that's where you got saved, because the price was above EMA uh this one right here nicely.

This one was below the EMA right here, so you would have taken this short and it gave you a little bit of nice, move to the downside right so on and so forth.

So I call it a breakout indicator because you know you're kind of trying to catch the breakout of some sort in this.

It's not a pullback kind of a trade right, you're catching the price, as it is breaking out right.

It's not a pullback strategy where you're trying to short it on the way back on the way up or or on strength or you're, trying to buy it on the pullback or on the weakness right.

It's a breakout trade by Nature.

So definitely in a trending Market, it looks nice.

It gives you good, uh entry points, let's see, if you we can find some sort of uh sideways price action.

Something like that right, this one right here.

So this one would have been okay.

This one right here, yeah went sideways sure, depending on your stop loss, it would have stopped you out or not, but really good scalping opportunities.

I think it can give you right.

So this was all sort of chopped.

So that's why you would have avoided that because it was gray.

So you can change all the parameters of this uh indicator in the settings and you know figure out what sensitivity you like, but uh, but yeah.

So this is what the indicator is and uh it's an enhanced version of the TTM squeeze right.

So it's not something a lot of this world, but it's just a improvised version of the TTM squeeze because I don't like looking at the indicator and then figuring out, what's happening on the chart.

I like everything on the chart price chart itself right, and this is what it uh, uh kind of gives me everything on the chart itself.

So I don't have to uh look elsewhere.

All right hope you guys like this little video and if you have any questions, comments uh, please, let me know all right.

Thank you.

Take care.


What time frame is best for TTM squeeze? ›

The squeeze can be used on any time frame, on any chart. The key to using it, is just understanding that once the squeeze fires, it usually lasts 8-10 bars.

What is the best indicator for breakout? ›

The best indicator to confirm a breakout is RSI (Relative Strength Index). If traders draw trendlines on RSI, they can get the most accurate support, resistance, or trendline breakout position.

How to use TTM squeeze for day trading? ›

Traders can look at the TTM squeeze and recognize that if the red dots turn to green and the bars are showing upward momentum, then they should go long. If, however, the red dots turn green but the bars are showing downward momentum, then the trader should go short on their trade.

Does the TTM squeeze work? ›

“Not only does the TTM Squeeze pinpoint moments in time when you can look forward to a 'greater than expected move,' but it also works well and complements many other trading tools and systems,” Carter said. “In sum, it's my favorite.” Like anything in trading, there's no guarantee with the TTM Squeeze indicator.

What is the optimal temperature for TTM? ›

Since the two RCTs in 2002,(2,3) the target temperature of 32°C–34°C has been adopted as the recommended target.

What do green dots mean on the TTM squeeze? ›

The on/off state of the squeeze is shown with small dots on the zero line of the indicator: red dots indicate the squeeze is on, and green dots indicate the squeeze is off. The TTM Squeeze indicator also uses a momentum oscillator to show the expected direction of the move when the squeeze fires.

How do you predict a breakout in trading? ›

One of the strongest signs of an impending successful breakout is a narrowing trend into the level. We can see in the chart above that upward buying pressure is mounting against the resistance level. Demand is beginning to outweigh supply as bulls tighten the range between the most recent low and resistance.

How does TTM scalper work? ›

The TTM Scalper Indicator is a visual way to help determine whether to buy or sell against a pivot level. faster the time frame, the faster the confirmation. The TTM Scalper Indicator measures the price action when you trade market. You can also program alerts in the Scalper Indicator for the white bars.

What is the T 2 rule in day trading? ›

T+2 means that when you buy a security, your payment must be received by your brokerage firm no later than two business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than two business days after the sale.

How much short interest is needed for a squeeze? ›

A short interest ratio of five or better is a good indicator that short sellers might panic, and this may be a good time to try to trade a potential short squeeze.

What is the difference between squeeze pro and TTM squeeze? ›

A: Squeeze Pro is more fine-tuned and designed to find more setups than the original TTM_Squeeze. Squeeze Pro offers more edge in the form of different levels of compression, catching more moves.

How do you know if a short squeeze is happening? ›

Scanning for a Short Squeeze

Essentially, there are three conditions that must be fulfilled: The number of shares short should be greater than five times the average daily volume. The shares short as a percentage of the float should be greater than 10% The number of shares short should be increasing.

Which should be avoided during TTM? ›

Avoid fever following targeted temperature management (TTM), as any elevated temperature is associated with worse neurologic outcome. Avoid hypoxia, with administration of oxygen saturation above 94%. However, hyperoxia is also harmful.

What is the initiation time for TTM? ›

Timing of initiation

TTM should be initiated as soon as possible to minimize reperfusion injury following the return of spontaneous circulation after cardiac arrest [15].

Why is TTM important? ›

By using TTM, analysts can evaluate the most recent monthly or quarterly data rather than looking at older information that contains full fiscal or calendar year information. TTM charts are less useful for identifying short-term changes and more useful for forecasting.

How do you tell if a stock is going to squeeze? ›

Short squeeze indicators
  1. Substantial amount of buying pressure. ...
  2. High short interest of 20% or above. ...
  3. High Short Interest ratio (SIR) or days to cover above 10. ...
  4. Relative Strength Index (RSI) below 30.
Sep 15, 2022

What are the signals of a short squeeze? ›

An RSI below 30 means that the stock's price will increase, which can signal a short squeeze. Buying pressure, when it comes to stocks, can mean a multitude of things. However, a sudden pressure or increase in the number of shares bought can also lead to a short squeeze.

Does squeeze momentum indicator work? ›

About the Squeeze Momentum (SM) indicator

Squeeze Momentum shows periods when volatility increases or decreases, in other words, when the market goes from the trend into flat movement and vice versa. The market consolidates 80% of time and only 20% of time it moves in a certain direction.

What are the leading indicators for scalping? ›

The EMA indicator is regarded as one of the best indicators for scalping since it responds more quickly to recent price changes than to older price changes. Traders use this technical indicator for obtaining buying and selling signals that stem from crossovers and divergences of the historical averages.

What is the most accurate buy and sell indicator? ›

Stochastics are a favored technical indicator because they are easy to understand and have a relatively high degree of accuracy. It falls into the class of technical indicators known as oscillators. The indicator provides buy and sell signals for traders to enter or exit positions based on momentum.

What are the most profitable indicators on Tradingview? ›

There are tons of indicators to use on Tradingview, and each trader must find the one that works best for their trading strategy. However, the most common indicators include Fibonacci Retracements, simple moving averages (SMAs), and exponential moving averages (EMAs).

What is the most powerful intraday strategy? ›

The Gap-and-go strategy, often called the best strategy for intraday, involves finding stocks with no pre-market volume. The opening price of these stocks represents a gap between yesterday's closing price.

How many indicators do professional traders use? ›

They fully rely on their understanding of the market and only use methods like price action, order flow, or Gann for this. Any way lets dive in and look at the 12 of indicators used by professional traders.

What is the most profitable day trading strategy? ›

Scalping is one of the most popular strategies. It involves selling almost immediately after a trade becomes profitable. The price target is whatever figure means that you'll make money on the trade.

How do you find strong breakouts in stocks? ›

Technical chart patterns like head and shoulders, triangles, and flags that are nearing completion and indicate higher price moves are also typical breakout targets. A price breakout generally occurs when price action makes a last swing to confirm the pattern.

How do you avoid false breakout trading? ›

The best way to be sure you don't get caught in a false-breakout from a trading range is to simply wait for price to close outside of the range for two days or more. If this happens, there's a good chance the range is finished and price is then going to start trending again.

How do you trade breakout stocks like a pro? ›

What are the steps to follow when trading breakout stocks?
  1. Identify the Breakout Stock Candidate. ...
  2. Wait for the Breakout. ...
  3. Set a Reasonable Objective for Breakout Stocks. ...
  4. Allow the Stock to Retest. ...
  5. Know When Your Trade/Pattern Has Failed. ...
  6. Exit Trades Toward the Market Close. ...
  7. Exit at Your Target.
Oct 31, 2022

What is the best time for scalping? ›

Whilst there is not really a "best" time frame for scalping, the 15-minute timeframe does tend to be the least popular with most Forex scalping strategies. Both 1-minute and 5-minute timeframes are the most common. Your acceptable profit or loss per trade will depend on the time frame that you are using.

How many trades should scalpers do in a day? ›

Traders who use this style of trading are known as scalpers, and they can place 10 to 100+ trades in one day in order to make even tiniest profit. Scalping attracts traders because it exposes them to less risk and offers greater number of trading opportunities.

How long should a scalper hold a trade? ›

Swing Trading
Scalp Trading
Holding PeriodA few seconds to minutes, never overnight
Number of TradesCan be hundreds during a day
ChartTick chart or 1-5 minute charts
Trader TraitsVigilance, impatience work well here
6 more rows

What is the 6% rule for day trading? ›

According to FINRA rules, you're considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period.

What is the 1% rule for day trading? ›

The 1% rule demands that traders never risk more than 1% of their total account value on a single trade. In a $10,000 account, that doesn't mean you can only invest $100. It means you shouldn't lose more than $100 on a single trade.

What is the 15 minute rule for day trading? ›

The rule of thumb is this: If a stock gaps down below the stop that has been established, wait for the first 15 minutes (up to 9:45am EST) to trade before doing anything. Then place a new protective stop just under (adjust this amount for the volatility of the issue) the low of that first 15 minutes of trade.

How do you profit from a short squeeze? ›

A short squeeze happens when many investors bet against a stock and its price shoots up instead. A short squeeze accelerates a stock's price rise as short sellers bail out to cut their losses. Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest.

Is a short squeeze market manipulation? ›

A scheme to manipulate the price or availability of stock in order to cause a short squeeze is illegal, according to the SEC.

What is the biggest short squeeze in history? ›

The biggest short squeezes in history occurred in January 2021, when shares of GameStop, a struggling video game retailer, suddenly soared in value following a coordinated effort by retail investors on the Reddit forum r/wallstreetbets to drive up the price.

How many days can a short squeeze last? ›

In general, short squeezes tend to last somewhere between several days and several months. There is no real “typical” length for a short squeeze, as each one is unique.

What triggers a short squeeze? ›

A short squeeze occurs when a stock moves higher and short sellers decide to cover their short positions or are forced to do so via margin calls. As these short sellers buy the stock, the price rises, potentially creating a situation in which more shorts have to cover.

How much is the TTM Squeeze Pro? ›

The New Multi Squeeze Pro / $597 $997.

What is a long squeeze vs short squeeze? ›

A long squeeze is the opposite of a short squeeze. In other words, a short squeeze will occur when the market price of an asset sees a sudden spike, causing panic among short sellers. As with a long squeeze, short sellers will often abandon positions when a short squeeze occurs to try and limit their losses.

Can a short squeeze happen twice? ›

If you ask retail traders and Apes, the answer is a firm no. While these Reddit traders continue to hold out hope for another GME short squeeze, the chances are slim that it will ever hit those levels again. As long as there are short sellers who are shorting GameStop, the GME short squeeze potential will never die.

When should I buy a short squeeze? ›

A short squeeze typically unfolds after a stock's been declining in price for some time. The decline in price attracts more and more short sellers looking to profit from the fall in price. At some point, considerable buying pressure begins to enter the market.

What is a high day to cover short interest? ›

Regardless, most options traders would agree that if a short-interest ratio is defined as the number of days to cover, more than 10 days is pretty high. Likewise, short interest as a percentage of float above 10% is pretty high and above 20% is extremely high.

What is the time frame for squeeze momentum indicator? ›

A 30-minute time frame is the most popular. MOMS combines the useful concept of 'momentum' with a strategy called BB Squeeze. BB Squeeze, and as a consequence also MOMS, identifies intervals of very low volatility based on the relationship between Bollinger bands and Keltner bands.

When should you sell on a short squeeze? ›

The higher the ratio, the higher the likelihood short sellers will help drive the price up. A short interest ratio of five or better is a good indicator that short sellers might panic, and this may be a good time to try to trade a potential short squeeze.

What time of day is best to short a stock? ›

The opening 9:30 a.m. to 10:30 a.m. Eastern Time (ET) period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

What is the most reliable momentum indicator? ›

RSI (Relative Strength Index)

The Relative Strength Index (RSI) is the most commonly used momentum trading indicator. It works by comparing the average number of higher closes in a given period, divided by the average number of lower closes.

Which is no 1 momentum indicator? ›

Moving Average Convergence Divergence (MACD)

Often regarded as the best momentum indicator, MACD is a trend-following indicator. It represents the relationship between 2 moving averages of a financial instrument's price. MACD moves back and forth between moving averages and indicates momentum.

What is the best indicator for momentum change? ›

Some of the main tools to measure momentum are the moving average convergence divergence (MACD), stochastic oscillator, price rate of change (ROC), and the relative strength index (RSI).

What are the signs of an upcoming short squeeze? ›

Scanning for a Short Squeeze
  • The number of shares short should be greater than five times the average daily volume.
  • The shares short as a percentage of the float should be greater than 10%
  • The number of shares short should be increasing.

What stops a short squeeze? ›

However, if the price of the shorted stock rises, you will lose money. The loss will increase as the price continues to rise, and this could continue indefinitely. The only way to stop the hemorrhaging is to close out the short position by buying the stock and settling your debt.

How long do most short squeezes last? ›

In general, short squeezes tend to last somewhere between several days and several months. There is no real “typical” length for a short squeeze, as each one is unique.

How high can short squeeze go? ›

If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.

How long should you hold a short position? ›

An investor should ideally hold a short position for as long as the investment is profitable and as long as one can reasonably expect the profits to increase in the future. However, there are a number of additional factors that can influence a short seller's decision on when to close out his or her position.

What are the worst months for the stock market? ›

What are the worst months for the stock market. From the charts of the monthly historical returns of both the S&P 500 Index and the Dow Jones Industrial Average shown above, you can see that the worse months for the stock market are September, August, and June.

How long should you stay in a trade for? ›

Ideally, you should hold your trades for as long as your trading plan specifies. If you exit before a pullback, or near the start of a pullback, you'll typically have smaller winning trades, but you'll win slightly more often.

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