TTM Squeeze Scanner for ThinkOrSwim: 5 Dots in a Row (Free Download)

What it shows

What the Squeeze Scan Looks For

The Squeeze scan looks for two things on the same bar: a squeeze that has lasted at least 5 bars, and moving averages stacked in one direction. The squeeze part is the same in both versions. The moving averages decide whether a stock lands in the bullish or the bearish list.

The EMAs and the SMAs are two separate stacks. The scan never compares the 34 EMA with the 50 SMA, so a bullish result can have its 34 EMA below its 50 SMA.

In the opening example of the video, Costco on the daily chart had everything the scan wants: stacked moving averages and 5 red squeeze dots in a row. That is the chart the scan is built to find.

Install it in ThinkOrSwim

How to Set Up a Custom Scan in ThinkOrSwim

A custom scan is a Study filter with your own thinkScript inside it. To build this one:

1. Open the Scan tab. I scanned the S&P 500, and you can pick any watchlist from the list selector at the top.
2. Keep any default filters you want, then click Add filter and choose Study.
3. ThinkOrSwim adds an ADXCrossover study by default. Open its dropdown, scroll to the bottom and choose Custom.
4. Switch to the thinkScript Editor tab and set the aggregation at the top. I used the daily timeframe.
5. Paste in the code, click OK, and run the scan.

The live version of ThinkOrSwim is required for this. When I recorded the video, custom study filters weren't supported in paperMoney. Our increasing volume scan tutorial uses the same custom filter steps if you want a second example.

How to Import the Ready-Made Scans

The Squeeze scan download is a 1-page PDF with two ThinkOrSwim share links, one for the bullish scan and one for the bearish scan, plus a link to the video. To load a scan:

1. In ThinkOrSwim, click Setup in the top right corner.
2. Choose Open shared item.
3. Paste in the link and save the scan.

The PDF does not contain the code itself, so copy it from the Code tab on this page if you'd rather build the filter by hand. Our guide on how to import a study or scan into ThinkOrSwim walks through shared items step by step, and you'll find more free scans on the scans page.

How the code works

How SqueezeAlert Tracks the Squeeze Dots

SqueezeAlert is the plot inside the built-in Squeeze study that tells a scan whether a squeeze is on. The study has three plot variables, listed in its study settings, and SqueezeAlert is the one that follows the dots. I plotted it under the chart in the video, and it only ever takes two values.

The values can feel backward: 0 marks the squeeze and 1 marks no squeeze. So 5 red dots in a row on the chart are 5 zeros in a row in SqueezeAlert, and that is the pattern the scan code looks for.

For more on reading the indicator itself, and other ways to trade it, start at our Squeeze hub.

How the Scan Code Works

The Squeeze scan code is four blocks: the 5-dot condition, the moving averages, the two stacks, and the signal that combines them. I started with the squeeze condition alone and tested it before adding the trend filter.

Step 1: Reference SqueezeAlert

To read a plot from a built-in study, write the study name with parentheses, then a period, then the plot name. TTM_Squeeze().SqueezeAlert returns the SqueezeAlert value on each bar. The parentheses tell ThinkOrSwim you are referencing a study, and once it recognizes the study it suggests SqueezeAlert as you type.

Step 2: Count Five Bars With Sum

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Sum adds SqueezeAlert over the last 5 bars. Every green dot adds 1, so the total is 0 only when all 5 bars are red: 0, 0, 0, 0, 0. The if ... then 1 else 0 wrapper returns 1 when that's true.

The comparison alone would also return 1 or 0, so the if is optional. I keep it because it reads more clearly.

Before adding the trend filter, I changed def to plot and ran this line on its own. On the S&P 500 with daily bars, it returned 43 stocks with 5 red squeeze dots in a row. Qualcomm was one of them, with 5 dots but moving averages that leaned bearish, which is why the scan needs a trend condition.

Step 3: Define the Moving Averages

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ExpAverage(close, 8) is an 8-period exponential moving average of the close. I copied that line for the 21 and 34.

The simple moving averages use the SimpleMovingAvg study with the close as the price and lengths of 50 and 200. Writing length = 50 by name makes sure the 50 goes to the length input.

Step 4: Build the Stacks and the Signal

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bullStacked is true when the 8 EMA is above the 21, the 21 is above the 34, and the 50 SMA is above the 200. bearStacked uses less-than signs for each comparison.

The plot line returns 1 only when the 5-dot condition and the bullish stack both equal 1. The scan lists every stock where the signal is 1 on the latest bar. For a scan built on the moving average stack alone, see our stacked moving averages scan.

Examples

What the Scan Found in the Video

The scan results in the video come from the S&P 500 on the daily timeframe, on the day I recorded. Your list will be different, but the charts show what a hit looks like.

• 5 dots only: 43 stocks. Qualcomm had 5 red dots in a row, but its moving averages leaned bearish.
• Bullish scan: the list became much smaller. Costco showed up again, and AutoZone (AZO) had more than 5 red dots in a row with stacked moving averages.
• Bearish scan: Qualcomm appeared here, and eBay had bearish stacked moving averages with 5 or more red squeeze dots.

AutoZone shows that the scan doesn't stop at exactly 5. Sum only checks the last 5 bars, so any stock whose last 5 bars are all red passes, and longer squeezes show up too.

How I Use the Results

The Squeeze scan gives me a list of stocks that have been in a squeeze for at least 5 bars with the trend on one side. The scan does not say when the squeeze will fire or how far price will move, so I open each chart and read it before doing anything.

Before you trade a name the scan finds, decide where your stop goes, and size the position so a stop-out costs a small, fixed share of your account.

To follow the results across timeframes, put them in our free Squeeze dashboard. It counts red dots on daily, 1-hour and 30-minute bars and flags the bar where a squeeze fires.

Customize and troubleshoot

The Bearish Version

The bearish Squeeze scan is the bullish scan with one word changed in the last line: bullStacked becomes bearStacked.

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The 5-dot condition is the same in both versions, because the trend condition is what separates bullish from bearish. Save the two versions as separate scans so you can run either one.

Ways to Customize the Scan

The Squeeze scan adapts with small edits, because SqueezeAlert is a value you can test in code. A few changes to try:

• Change the dot count. Replace the 5 in Sum(TTM_Squeeze().SqueezeAlert, 5) with a larger number to require a longer squeeze, or a smaller one for a shorter squeeze.
• Change the timeframe. Set a different aggregation at the top of the thinkScript Editor. I used daily bars.
• Change the list. Scan the S&P 500, as I did, or any watchlist you choose.
• Scan for other patterns. Once you can read SqueezeAlert, you can look for other dot patterns of your own.

For Volatility Box members, I added a module to the Squeeze Course with a similar scan built on the Triple Pro Squeeze. It looks for 5 dots in a row in any mix of red, black or yellow squeeze dots, with bullish and bearish share links. It's in Module 17: Five Triple Pro Squeeze Dots in a Row Scan.