![]() How to use the TTM indicator in 3 easy steps: Pro Tip: Lower time frames are typically used as entry and exits to support the higher time frame when swing trading. Now I am not saying that this is not a tactic that the pros use, but to proceed with caution as this can lead to confusion and easily overwhelm any beginning trader. Many times I hear traders that are long the markets on the daily timeframe and are short the markets on a 1-hour time frame. This is important and helps to maintain the correct direction you are trying to trade in. You would look up to the weekly chart from the daily chart, you would also look up to the daily chart from the hourly chart. This indicator triggered overnight Sunday into Monday this week, pointing to higher prices and continued momentum to the upside.Īnother key thing to remember is looking “up” in timeframes. Just as this indicator pointed to higher markets on both the weekly and daily timeframes, the hourly chart is also pointing to higher prices. There are some instances where we can trade daily time frame based on hourly price movement Get any of these wrong, and you are facing potentially major losses on the trades. Well, as a daily trader and swing trader of the markets it’s important that I know what the trends are on top of what direction they are going to be heading towards. Secondly, there was no period of consolidation, or red dots, indicating low volatility and consolidation in the price action. This point on the zero line is interesting to me for two reasons.įirst, it’s indicating that there is a change in momentum from a negatively trending market to possibly a positive trending market. This is telling us that SPY could continue higher. Looking at the above image of the SPY on the Daily timeframe, the line on the left points to the first bar that is breaking above the zero line. 9/10 times a trader suffers most of their losses by ignoring a very common phrase, “the trend is your friend”. This is telling us that SPY could continue higher in the upcoming weeks.Īs a daily timeframe trader, it’s not wise to go against what the macro trend is indicating. Looking at the above image of the SPY on the Weekly timeframe, the line on the right points to the first bar that is breaking above the zero line. Let’s take a look at some SPY charts and break down what the indicator is telling me. I find this gives me the clearest information to help identify new trends, changes in momentum, and increased volatility. When the market finishes a move, the indicator turns off, which corresponds to bands having pushed well outside the range of Keltner’s Channels.įor myself, I primarily focus on the Zero Line and how price reacts to changes in either the direction of momentum or volatility increasing. The Squeeze indicator finds sections of the Bollinger Bands study which fall inside the Keltner’s Channels. There are three major components to the TTM Squeeze Indicator:Įach component plays a key role in this unique indicator. This indicator allows us to identify periods of consolidation and anticipate when momentum is about to kick in.Īdditionally, it helps the trader to not only identify periods of consolidation but also indicate which direction the trade is about to take for its next move. The TTM indicator measures the relationship between two popular studies: The Bollinger Bands and Keltner’s Channels.
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