Double Your Trading Benefits with Bollinger Band Keltner Channel Squeeze Indicator MT4

Introduction
Traders the world over rely on technical analysis tools like forex–trading-success/” title=”bb Stop Indicator: Your Guide to Forex Trading Success”>Bollinger Bands® and Keltner Channels for insights into market movements. These two indicators form the basis of what is known as the Bollinger Band Keltner Channel Squeeze Indicator, or BBKC Squeeze Indicator for short. In this article, we explore how traders can use this indicator for enhanced decision making in their trading.

What is the BBKC Squeeze Indicator?
The BBKC Squeeze Indicator is a technical analysis tool used in forex trading to identify periods of low volatility in the market. The Squeeze refers to a period of low volatility identified by the narrowing of the Bollinger Bands or Keltner Channels. During this time, traders can expect to see limited movement in prices as the trading range has narrowed significantly. The indicator is available on many MT4 (MetaTrader 4) forex trading platforms, and can be a valuable tool for those who use technical analysis in their trading.

How Does It Work?
The BBKC Squeeze Indicator works by taking two basic components of a chart – the Bollinger Bands and Keltner Channels –to form a three-dimensional view of the market. It plots Bollinger Bands at two standard deviations away from the simple moving average and Keltner Channels two times the Average True Range from the 20-period exponential moving average. When the market is transitioning from lower volatility to higher volatility, the indicator will show divergent highs and lows, indicating that a squeeze is occurring.

When Is the Best Time to Use This Indicator?
The best time to use the BBKC Squeeze indicator is when there is low volatility in the market. When the range of the Bollinger Bands and Keltner Channels have narrowed, traders should look out for potential breakouts as this is an indication that a change in the trend may be imminent. By using the BBKC Squeeze indicator, traders can identify when this might happen and seek to take advantage of the breakout.

Conclusion
The BBKC Squeeze Indicator is a useful tool for those who use technical analysis to inform their trading decisions. It can help traders identify periods of low volatility in the market, which can be a precursor to a potential breakout. By using the indicator to monitor market movements, traders can look to take advantage of any potential opportunities.

What is a TTM Squeeze?

The TTM Squeeze is a reliable trading indicator used to gauge market volatility. Developed by John Carter, this indicator takes into account the relationship between Keltner Channels and Bollinger Bands to arrive at the conclusion whether the market is set to move. When the Bollinger Bands move within the Keltner Channel, it is referred to as a ‘Squeeze’ and could be indicative of higher market volatility. The TTM Squeeze can be used on the Multitime Frame (MTF) and is applicable for both Forex and Stock trading. Traders can use the TTM Squeeze to gain better insight into market conditions.

How to Use the TTM Squeeze?

The TTM Squeeze trading indicator is based on spot forex or stock charts and can generate signals for the trade. The indicator is included in the majority of trading platforms, like MetaTrader 4 (MT4). When the Keltner Channels and Bollinger Bands come together and form a Squeeze, there is usually an impending breakout the market. This can signal an entry into a long or short-term trade. Depending on Robert Prechter’s Wave Theory, price movements after the Squeeze may increase, decrease or remain the same. To gain more knowledge about the TTM Squeeze indicator, traders should familiarise themselves with its components and the meanings of the indicators on the margins of daily price movements.

What is the Meaning of TTM Squeeze Indicator?

The TTM Squeeze indicator is used to gauge market volatility. It generally draws a correlation between Bollinger Bands and Keltner Channels by recognizing when the former shifts within the latter. This is referred to as a “Squeeze”, highlighting the fact that price movements are expected to resume after a period of inactivity. The Squeeze is used for determining the likely direction of a trade. The pattern formation is generally used for short-term trades, although the same could be used for longer trades too. The TTM Squeeze indicator can be very useful for stock and forex traders who want to get a good feel of the market before undertaking any trading activity.