The TTM Squeeze indicator was developed by trader John Carter, and it combines two popular concepts: Bollinger Bands and Keltner Channels. When these two indicators squeeze together, it shows that volatility is dropping and the market is getting tight. Think of it like a rubber band being stretched—the tighter it gets, the harder it snaps back. The indicator displays dots at the bottom of the chart. Red dots mean the squeeze is on, and the market is building pressure. Green dots signal the squeeze has fired, and price is ready to make a move.

Reading the Signals

Once traders understand the color-coded dots, they need to look at the histogram bars in the middle of the indicator. These bars tell them which direction the breakout might go. Light blue or green bars going up suggest bullish momentum, while red bars heading down point to bearish pressure. The key is waiting for the squeeze to fire (when dots turn green) and then watching which way the histogram moves. Many traders combine this with price action to confirm their entries. They don’t just jump in blindly—they wait for the right setup.

Why Traders Love This Tool

The TTM Squeeze has become popular because it works across different timeframes and markets. Day traders use it on 5-minute charts to catch quick moves. Swing traders apply it to daily charts for bigger trades. It even works on forex pairs, stocks, and commodities. The real advantage is that it keeps traders out of choppy, sideways markets where most people lose money. Instead of grinding through slow periods, they can wait for high-probability setups when the market actually wants to move. This patience often leads to better win rates and less stress.

How to Trade with TTM Squeeze MT4 Indicator

Buy Entry

• Wait for the Squeeze – Look for red dots at the bottom of the indicator, showing the market is in a tight squeeze.
• Watch for the Fire – The dots turn from red to green, signaling the squeeze has released.
• Check the Histogram – Make sure the histogram bars are turning light blue or green and pointing upward.
• Confirm the Direction – Price should be breaking above a recent resistance level or moving higher.
• Enter the Trade – Place a buy order once all signals align, and momentum is clearly bullish.
• Set Stop Loss – Put your stop loss below the recent swing low or below the squeeze area.
• Target Profit – Aim for previous resistance levels or let the trade run while the histogram stays positive.

Sell Entry

• Wait for the Squeeze – Identify red dots showing the market is compressed and building pressure.
• Watch for the Fire – Dots change from red to green, indicating the squeeze is releasing.
• Check the Histogram – Ensure the histogram bars are turning red or dark and pointing downward.
• Confirm the Direction – Price should be breaking below a recent support level or trending lower.
• Enter the Trade – Place a sell order when all bearish signals come together.
• Set Stop Loss – Position your stop loss above the recent swing high or above the squeeze zone.
• Target Profit – Aim for previous support levels or ride the move while the histogram remains negative.

Conclusion

The TTM Squeeze MT4 Indicator gives traders a clear edge by showing them when markets are coiling up and ready to explode. Instead of guessing when to trade, they get visual signals that highlight the best opportunities. The combination of squeeze dots and momentum bars creates a simple system that even newer traders can understand and use. While no indicator is perfect, the TTM Squeeze helps filter out bad trades and focuses attention on moments when the market has real potential to move. For anyone tired of choppy markets and bad timing, this tool offers a practical solution worth exploring.

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