The BEST Way To Trade the TTM Squeeze As a Beginner (Updated 2024)

Step-by-Step Tutorial: Trading the TTM Squeeze as a Beginner

Introduction:

1. Understand the Concept: The TTM Squeeze is a trading strategy created by John Carter from Simpler Trading.
2. Key Idea: The strategy focuses on identifying periods when volatility is contracting, indicating a potential upcoming price movement.

Understanding the TTM Squeeze Setup:

3. Identify a Squeeze: A stock is in a squeeze when the Bollinger Bands are contracting inside the Keltner channels.
4. Volatility Contraction: This contraction signifies a buildup of energy, similar to stretching a rubber band.
5. Time Frame: The squeeze can occur on any time frame, from one minute to weekly charts.
6. Visual Cues: Look for Bollinger Bands inside the Keltner channels to identify a squeeze.

Timing and Premiums:

7. Cheapest Time to Buy: Options are at their cheapest during a squeeze, before a breakout or breakdown.
8. Differentiate Squeeze Phases: Red dot indicates tightening, orange dot signals the cheapest options, and black dot represents low compression squeeze.

Trading Strategies:

9. Position Sizing: Consider entering a trade during the squeeze phase to benefit from the potential energy release.
10. Directional Bias: Determine the likely direction of the squeeze's breakout to choose the right options.
11. Timing the Entry: Buy options before the volatility spike to capitalize on the price movement.
12. Selling Strategy: Consider selling into strength when others are scrambling to enter the trade.

Applying the TTM Squeeze in Real-Time:

13. Analyzing Stocks: Use indicators like TTM Squeeze Pro, Ready Aim Fire, and Forecast Pro to identify potential squeeze setups.
14. Identifying Squeeze Phases: Look for periods of volatility contraction and narrow Bollinger Bands as potential entry points.
15. Trend Confirmation: Confirm the trend direction before entering a trade during a squeeze phase.
16. Utilize Additional Indicators: Ready Aim Fire Pro can provide further insights into potential price movements.

Conclusion and Action Steps:

17. Engage with the Content: Like and subscribe to the channel to support the creator and receive more trading insights.
18. Continuous Learning: Consider further education on options trading strategies to enhance your skills.
19. Stay Informed: Join live sessions and explore additional tools like the TTM Squeeze indicator for a comprehensive trading experience.

By following these steps and understanding the principles behind the TTM Squeeze strategy, beginners can effectively trade options and capitalize on potential market movements. Remember to practice risk management and continuously educate yourself to improve your trading skills.