![]() Carter recommends selling when you’ve had two bars in the new color. The momentum histogram can also be used to determine specific exit points. When the histogram changes direction and starts moving back towards the zero line, that is a signal to sell. Price moves after a squeeze fires tend to last for 8-10 bars. ![]() In addition, a bar that is lower than the previous bar will be a darker color (dark blue or dark red), and a bar that is higher than the previous bar will be a lighter color (light blue or light red). Bars above the zero line are blue and below the zero line are red. The histogram bars are color coded for ease of interpretation. If the momentum is above the zero line and rising (light blue bars), buy long if the histogram is below the zero line and falling lower (dark red bars), that indicates a shorting opportunity. The momentum histogram helps to determine the direction in which to trade. Carter recommends buying on the first green dot after one or more red dots. When volatility increases and the Bollinger Bands expand until they are outside of the Keltner Channels, the squeeze has “fired” and the squeeze dots will be green. While volatility levels are low, the squeeze dots will be red. The Squeeze dots signal when volatility conditions are right to buy the momentum histogram indicates the direction (long or short) in which to trade. The Squeeze Momentum PRO has both volatility and momentum components. This histogram oscillates around the zero line increasing momentum above the zero line indicates an opportunity to purchase long, while momentum falling below the zero line can indicate a shorting opportunity. The Squeeze Momentum PRO also uses a momentum oscillator to show the expected direction of the move when the squeeze fires. ![]() 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. When the Bollinger Bands expand and move back outside of the Keltner Channel, the squeeze is said to have “fired”: volatility increases and prices are likely to break out of that tight trading range in one direction or the other. If the Bollinger Bands are completely enclosed within the Keltner Channels, that indicates a period of very low volatility. The volatility component of the Squeeze Momentum PRO measures price compression using Bollinger Bands and Keltner Channels. Squeeze Momentum PRO is based on TTM Squeeze that is a volatility and momentum indicator introduced by John Carter of Trade the Markets (now Simpler Trading), which capitalizes on the tendency for price to break out strongly after consolidating in a tight trading range. OVERVIEW – Squeeze Momentum PRO for Ninjatrader 8 Video Demonstration of Squeeze Momentum PRO
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