TTM Squeeze
The TTM Squeeze, from John Carter's Mastering the Trade, fires when the Bollinger Bands contract entirely inside the Keltner Channels. Because the bands measure standard deviation and the channels measure average true range, the bands moving inside the channels is a precise statement that volatility has compressed relative to its own norm.
- Bias
- Neutral / directionless
- Category
- Volatility Compression
- Scan cadence
- Every close
What has to be true for a TTM Squeeze to trigger
- Bollinger Bands contained within the Keltner Channels
- The condition currently active rather than recently released
How PatternGrade grades it
Deeper compression and a longer-held squeeze raise the grade.
Every scanner grades its hits A+, A or B from the pattern's own measurable structure. The grading is deterministic — the same chart always produces the same grade. It describes how closely the chart matches the pattern, not how likely anything is to happen; no hit rate or probability is attached to a grade. The reasoning is set out in the methodology.
What a TTM Squeeze looks like in practice
A stock's Bollinger Bands narrow until both sit entirely inside its Keltner Channels. The standard-deviation measure has fallen below the average-true-range measure, which only happens when volatility is unusually compressed. The condition holds for eleven consecutive sessions while price coils in a four-point range, then the bands push back outside the channels and the range expands sharply.
How a TTM Squeeze fails
The squeeze fires and price goes the other way. The TTM Squeeze's momentum histogram is commonly used to guess direction, and it is a smoothed derivative of price that changes sign late, often after the initial move is well underway. The other failure is a squeeze that releases weakly: bands exit the channels, volatility ticks up slightly, and nothing much happens.
What this pattern is telling you
The squeeze says a move is coming, not which way. Traders conventionally pair it with a momentum reading for direction, which is a separate decision from spotting the squeeze.
PatternGrade is not a financial advisor and does not give buy or sell recommendations. Targets and stops shown on a pattern are reference levels derived from its geometry, not advice.
How to scan for TTM Squeeze setups
PatternGrade rescans every liquid US stock (~4,500 names) for this pattern after every close and returns the hits as a graded list, with the pattern drawn on each chart, so you review setups rather than hunt for them.
Join the waitlist to be invited when sign-ups reopen and see the current TTM Squeeze list, or browse all 75 patterns.
TTM Squeeze FAQ
What is the TTM Squeeze indicator?
A volatility indicator that fires when Bollinger Bands contract inside the Keltner Channels, signalling unusually compressed volatility ahead of a likely expansion.
Is the TTM Squeeze directional?
No. It identifies compression. Direction has to come from somewhere else, which is why PatternGrade classifies it as neutral.
What is the TTM Squeeze?
An indicator from John Carter's Mastering the Trade that fires when Bollinger Bands contract entirely inside Keltner Channels. Because the bands use standard deviation and the channels use average true range, the crossover marks a specific and relatively uncommon kind of volatility compression.
How is it different from a normal Bollinger squeeze?
It has a second, harder condition. A plain squeeze only asks whether band width is low relative to its own history; the TTM version asks whether one volatility measure has fallen below another. That makes it fire less often and, arguably, more meaningfully.
Does the TTM Squeeze predict direction?
The squeeze itself does not. It is a volatility condition. Carter's original presentation pairs it with a momentum histogram intended to suggest direction, but that histogram is derived from price and turns late. PatternGrade classifies the pattern as neutral and grades the quality of the compression rather than guessing the resolution.
How long do TTM squeezes last?
Commonly one to four weeks. Longer squeezes are generally read as storing more energy, though the relationship between duration and the size of the eventual move is looser than the folklore suggests.
Patterns a TTM Squeeze is mistaken for
- Bollinger Squeeze
- The plain Bollinger squeeze only requires narrow band width. The TTM version requires the bands to contract inside the Keltner Channels, which is a stricter and less frequent condition.
- NR7 (Narrow Range)
- NR7 is a single-bar range comparison. The TTM Squeeze is a multi-session relationship between two volatility measures.
- Inside Bar
- An inside bar is one session inside another. A TTM squeeze is a sustained volatility state that typically spans many sessions.
Last reviewed . Structure and grading for the TTM Squeeze are reviewed against the scanner's own rules.