SQZ (TTM Squeeze)¶
What it shows: whether the market is very quiet ("squeeze on": the Bollinger Bands are inside a Keltner channel) and a momentum line that shows which way price is pushing.
How people use it: traders wait for a squeeze, then trade when it ends ("fires") in the direction of the momentum: momentum above 0 for a buy, below 0 for a sell.
Pairs well with: a trend filter such as a moving average, to only take breakouts with the trend.
Settings¶
| Setting | Default | What it does |
|---|---|---|
| BB length | 20 | Length of the Bollinger Bands. |
| BB std dev | 2.0 | Width of the Bollinger Bands. Narrower bands are inside the channel more often (more squeezes). |
| KC length | 20 | Length of the Keltner channel. |
| KC multiplier | 1.5 | Width of the Keltner channel. Wider means more squeezes. |
| Momentum length | 20 | Candles used for the momentum line. Shorter turns faster. |
You set the defaults on the Indicators page. A condition can use its own settings, which override the defaults for that condition only.
Ready-made conditions¶
| For | Condition | Fires when |
|---|---|---|
| Buy or sell | Squeeze is on (Bollinger Bands inside the Keltner channel) | every candle it is on (1) |
| Buy or sell | Squeeze is not on | every candle it is not on (0) |
| Buy or sell | Squeeze is off (bands outside the channel) | every candle the bands are outside the channel (1) |
| Buy | Squeeze momentum above 0 | every candle Squeeze momentum is above 0 |
| Buy | Squeeze momentum rising | every candle Squeeze momentum is higher than 1 candle before |
| Sell | Squeeze momentum below 0 | every candle Squeeze momentum is below 0 |
| Sell | Squeeze momentum falling | every candle Squeeze momentum is lower than 1 candle before |
"Above", "below", "is" and "rising" / "falling" stay true on every candle the state lasts, so they can fire many candles in a row.
Warnings you may see¶
- "SQZ(20,2,20,1.5,20) Squeeze on only moves between 0 and 1, so 2 can never be reached." (also for SQZ(20,2,20,1.5,20) Squeeze fired (bands back outside the channel)): a number you typed is outside the range this line can take, so the condition can never be true (or is always true). Check the number. You can still save it.
- "BB length must be between 1 and 1000" / "BB length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "BB std dev must be between 0.1 and 10": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "KC length must be between 1 and 1000" / "KC length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "KC multiplier must be between 0.1 and 10": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "Momentum length must be between 1 and 1000" / "Momentum length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
Where they show: on the Strategies page, open Create entry conditions / Edit entry conditions (or the exit ones). Each condition's messages appear right under it. The setting messages ("must be between", "whole number", "must be one of", "must be smaller than") start with the indicator's short name, for example "MACD: Fast must be between 1 and 1000", and keep the conditions from being saved until fixed. The other warnings never block saving and are repeated in the strategy's Entry or Exit section, starting with the condition's name.
Good to know¶
- It is worked out from each candle's high, low and close (not volume).
- To catch "fires after a squeeze", combine "Squeeze is on" with a lookback (for 5 candles in a row, ending 1 candle ago) and "Squeeze is not on" now. The squeeze uses its own Keltner channel (built on a simple average), not the Keltner Channels indicator.
- It needs some history before its value settles: the longest of its windows: BB length, KC length + 1, or KC length + Momentum length - 1 candles (39 at the defaults). Apathia loads that history for you.
- The squeeze states are 1 (yes) or 0 (no).