On the other hand, if the asset’s value continues to climb in a trend, that strategy will not work. If an asset’s value is increasing but is expected to revert to the mean value in an oscillating pattern, traders can engage in a reversion to the mean trade (otherwise known as an oscillating trade). The TTM squeeze indicator is therefore the market analysis tool used by traders to identify when they can enter or exit a marketfor the best chance of profitability.Īs a volatility-based indicator, the TTM squeeze indicator shows when an asset is going to change from a trending market to an oscillating one, and vice-versa. If a trader can identify the point before that asset enters a trend, they can prepare their trade accordingly and enter the market at the best possible point. If the market enters a trend, for example when smart contractsmade Ethereum (ETH)incredibly popular, the value of an asset can skyrocket. Carter, the TTM squeeze was created to show when a contracting market was about to explode into a trending market. To efficiently use the TTM indicator, a trader will: 1 Look to see if the asset is in a squeeze 2 Check the direction of the bars on the TTM squeeze’s histogram 3 Check the power of the squeeze 4 Check the TTM wave to confirm the direction.Ĭreated by John F.The TTM squeeze pairs well with other indicators, such as the Average directional index (ADX) indicator, The TTM wave, etc.The TTM squeeze indicator is a analysis tool used by traders to identify when they can enter or exit a market for the best chance of profitability. One technical indicator that has proved useful time and time again, is known as the TTM squeeze indicator. Traders employ a variety of technical indicators to help them with their analysis of an asset’s performance. The TTM Squeeze Indicator: What Is It and How to Use It?
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