TTM Squeeze Watchlist for ThinkOrSwim (Free Download)

Overview

Introduction

The TTM Squeeze Watchlist helps traders identify impending volatility breakouts using Bollinger Bands and Keltner Channel relationships. This systematic approach filters stocks showing compression patterns likely to produce directional moves. It combines real-time scanning with historical performance metrics for confident trade selection.

Volatility Box members gain access to specialized tools including squeeze signals, backtesters, and multi-timeframe analysis. These resources help evaluate win rates, average returns, and risk-reward ratios before entering trades. The system particularly benefits swing traders seeking 2-5 day setups and day traders hunting intraday continuation plays.

This tutorial focuses on interpreting squeeze signals through three key components: the histogram, volatility boxes, and backtested performance data. You'll learn to eliminate low-probability setups like CLS (-14.52% average loss) while prioritizing strong candidates like PLNT (+8.16% average gain). The process streamlines watchlist creation from 7+ candidates to 1-3 high-conviction plays daily.

Understanding the TTM Squeeze Watchlist

The TTM Squeeze identifies stocks where Bollinger Bands narrow inside Keltner Channels, signaling impending volatility expansion. Blue arrows appear when compression reaches critical levels, as seen in PLNT's chart before its 10.15% move. This compression-release cycle creates opportunities in both trending and mean-reverting markets.

Historical performance data separates theoretical patterns from statistically profitable setups. The backtester revealed JETS ETF had 6:1 win ratio but poor risk-adjusted returns due to -14.52% average losses. Contrast this with SSNC's 13:6 win ratio and +4.63% average gains, demonstrating quantifiable edge.

Volatility Box integration adds critical context through support/resistance zones and momentum analysis. Planet Fitness (PLNT) showed ideal alignment between squeeze signals and technical levels at 101.50-106.45. These convergence points help time entries during intraday pullbacks like the 11AM-12PM reversal shown in the transcript.

Key Components and Settings

The Squeeze Signals Scanner filters symbols showing active compression across user-defined timeframes. Default settings track daily charts but can be modified for intraday scans. Seven candidates emerged in the example scan including WIX and HOOD, though backtesting eliminated both.

Triple Squeeze Indicator layers three volatility measurements: histogram colors denote momentum, dots show compression phases, and arrows signal imminent breakouts. PLNT displayed bullish alignment with green histogram above zero and blue squeeze alert. Bearish setups like CLS showed red histograms below key levels.

Backtester Settings require careful optimization for maximum relevance. The example used 200-day lookback periods and No Squeeze Exit rules. Results showed PLNT's 10:3 win ratio with trades lasting 2-5 days, compared to HOOD's unprofitable 3:5 ratio.

Step-by-Step Implementation

Start by running the Squeeze Signals Scan under Scan tab > Volatility Box > Squeeze Plays. Filter results using Market Cap (>$2B) and Average Volume (>1M shares). The initial scan returned seven symbols: JETS, SSNC, CLS, FHN, PLNT, WIX, and HOOD.

Load candidates into separate charts with Triple Squeeze Indicator applied. Check for blue squeeze alerts above key support levels like PLNT's 101.50 zone. Eliminate symbols with red histograms or unfavorable backtest metrics like CLS's negative expectancy.

Apply Backtester by right-clicking chart > Studies > Add Squeeze Signals Backtester. Prioritize symbols with >60% win rates and positive histograms. PLNT scored highest with 77% wins versus SSNC's 68%, making it the top watchlist candidate.

Trading Strategies

Swing traders should focus on daily chart signals near volatility box boundaries. PLNT's ideal entry near 101.50 offered 3:1 risk-reward to 106.45 resistance. Set stop-losses below the lower volatility band (99.80 for PLNT) using 1.5x average true range.

Day traders can exploit intraday mean reversion using 15-minute charts. The transcript highlights PLNT's 11AM dip into volatility box support before reversal. Enter long positions when 5-period RSI crosses above 30 during squeeze alerts.

Combine with sector analysis using ETFs like JETS for confirmation. While JETS itself underperformed, airline stocks within the ETF might show stronger individual setups. Always cross-verify with SPY/QQQ trend alignment for higher-probability trades.

Advanced Techniques

Customize scanner settings using thinkScript: Set squeezeLength = 20 and momentumLength = 12 for faster signals. Add secondary filters like ADX >25 to confirm trend strength. This helped eliminate choppy symbols like WIX in the example scan.

Multi-timeframe analysis boosts accuracy: Check weekly charts for PLNT's long-term uptrend while using daily signals for timing. The 127.20 weekly resistance aligned perfectly with daily volatility boxes for confluence.

Use conditional orders with OCO brackets for automated execution. Set limit entries at 101.50 with stops at 99.80 and targets at 106.45 for PLNT. This ensures disciplined trade management during volatile sessions.

Common Pitfalls to Avoid

Don't ignore backtest metrics - CLS showed 40% win rate but users might chase oversold conditions. Always verify average winner/loser ratios like SSNC's +4.63%/-8% balance before trading.

Avoid trading against market trends - HOOD failed despite squeeze signals during tech sector weakness. Check QQQ direction and VIX levels before entering long positions.

Don't misuse volatility boxes as exact price targets. PLNT's 106.45 level served as guide, but actual exits should use trailing stops or momentum flips below histogram zero line.

Best Practices

Update watchlists daily using pre-market scans for fresh signals. Re-run backtests weekly to adapt to changing volatility conditions like those seen in JETS ETF.

Maintain strict 2:1 risk-reward ratios using volatility box measurements. PLNT's 101.50-106.45 range provided natural 4.95% profit potential against 1.7% risk.

Combine with earnings calendars to avoid events. The transcript's analysis excluded FHN due to upcoming dividend payments, demonstrating fundamental filter importance.

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Goes with

The Squeeze Course19 modules · Included with Volatility Box and the BundleSqueeze SetupsA live squeeze board on 600+ stocks and ETFs

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