📊 TTM Squeeze Advance – Volatility Compression + Momentum Bias Indicator

By Sharma Research
Concept inspired by John Carter (TTM Squeeze)

TTM Squeeze Advance is an advanced volatility–momentum indicator designed to identify one of the most important structural market phases:

Periods of low volatility that often precede expansion.

Markets do not move randomly.
They alternate between:

Compression (quiet accumulation)
Expansion (directional breakout)
Exhaustion (cooling off)

The TTM Squeeze framework is built to detect the first phase—when price becomes unusually “tight”—and prepare traders to observe what may come next.

🔍 Why Volatility Compression Matters

Most traders focus on movement.

But professional market behavior often begins with stillness.

Before strong directional moves, markets frequently enter zones where:

volatility contracts
ranges tighten
price becomes “coiled”

This is not a signal by itself.
It is a condition.

TTM Squeeze is essentially a tool that asks:

“Is the market currently in a compressed state where expansion becomes statistically more likely?”

⚙️ Core Logic: Bollinger Bands vs Keltner Channels

TTM Squeeze is based on the interaction between two volatility envelopes:

1️⃣ Bollinger Bands (Standard Deviation Expansion)

Bollinger Bands widen when volatility rises and contract when volatility falls.

They represent statistical volatility.

2️⃣ Keltner Channels (ATR-Based Volatility Range)

Keltner Channels are built using True Range smoothing.

They represent range volatility.

The Squeeze Condition

A squeeze occurs when Bollinger Bands contract inside the Keltner Channel.

That indicates:

volatility is unusually low
price movement is being compressed
the market is “loading energy”

TTM Squeeze Advance plots multiple compression levels:

🟠 High Compression
🔴 Medium Compression
⚪ Low Compression
🟢 No Squeeze (Expansion Zone)

🟢 Understanding the Dot States

This indicator visualizes volatility regimes using squeeze dots:

Orange Dot → Very tight compression
Red Dot → Moderate compression
White Dot → Mild compression
Green Dot → No squeeze (volatility released)

A key interpretation:

Compression is preparation.
Green dots represent the environment where movement is already expanding.

🧠 Directional Bias: Momentum Oscillator Layer

TTM Squeeze by itself only tells you:

volatility is compressed

It does not tell you:

which direction the breakout may favor

That is why TTM Squeeze Advance includes a custom momentum oscillator, built using linear regression of price deviation from its midpoint.

This oscillator provides directional context:

Momentum above zero → bullish pressure
Momentum below zero → bearish pressure
Rising momentum → strengthening bias
Falling momentum → weakening bias

🎨 Momentum-Based Candle Coloring

To improve visual interpretation, the script colors candles based on momentum regime:

Aqua → bullish momentum strengthening
Blue → bullish momentum weakening
Red → bearish momentum strengthening
Yellow → bearish momentum weakening

This helps users see momentum shifts without needing extra oscillators.

✅ Entry Filtering: “Only Enter on Green Dots”

A major enhancement in this version is optional filtering:

Signals can be restricted to only occur during No Squeeze (Green Dot) states.

This aligns with a key principle:

Compression is the setup
Expansion is the action

So instead of firing entries inside tight ranges, the indicator can wait until volatility has actually begun releasing.

🔁 Cross Confirmation + Regime Change Logic

TTM Squeeze Advance includes optional cross-confirmation logic:

Signals trigger only when conditions newly appear
Prevents repeated firing inside the same regime
Encourages cleaner “state transition” interpretation

This makes the tool more suitable for structured backtesting and reduces clutter.

🔄 Inversion Option (Research Utility)

The indicator also supports an “Inverse” mode, which flips directional logic.

This is not meant as a recommendation, but as a research feature for exploring:

mean-reversion interpretations
alternative regime models
countertrend frameworks

🚨 Educational Use Only

TTM Squeeze Advance is designed for:

volatility regime study
momentum behavior analysis
backtesting expansion conditions

It is not a buy/sell recommendation system.

Volatility compression increases the probability of movement, not certainty of direction.

Proper risk management and contextual analysis remain essential.

📚 Concept Inspiration

The original TTM Squeeze framework is credited to:

John Carter (TTM Squeeze methodology)
Community implementations such as Beardy_Fred

TTM Squeeze Advance builds upon this classic by adding:

multi-level squeeze state dots
momentum-driven candle bias
optional expansion-only filtering
cross-confirmed regime transitions
background highlighting for clarity

👨‍💻 Developed By

Sharma Research
Written in Pine Script v5 for TradingView
Released for educational and research purposes only


//@version=5
// TTM Squeeze Advance by SharmaResearch.com

// Original concept credits: Beardy_Fred, John Carter (TTM Squeeze)

//
// How this works (quick intro):
// This indicator is an advanced implementation of the classic TTM Squeeze,
// combining Bollinger Bands and Keltner Channels to detect volatility compression zones.
// A custom momentum oscillator is used to determine directional bias and histogram coloring.
// Optional features include cross confirmation, signal inversion, and filtering entries
// to only occur during “No Squeeze” (green dot) states.
// Visual elements include squeeze dot states, momentum-based bar coloring,
// and background highlighting for confirmed directional conditions.

indicator("TTM Squeeze Advance by SharmaResearch.com (Concept: John Carter)", shorttitle="TTMS+", overlay=true)


// ──────────────────────────────────────────────
// Inputs
// ──────────────────────────────────────────────
use_TTMS               = input.bool(true, "Use TTMS?")
redGreen_TTMS          = input.bool(true, "Only Green & Red Candles?")
cross_TTMS             = input.bool(true, "Cross confirmation?")
inverse_TTMS           = input.bool(false, "Inverse?")
highlightMovements_TTMS = input.bool(true, "Only Enter on Green Dots?")

length_TTMS            = input.int(20, "TTM Squeeze Length")

// ──────────────────────────────────────────────
// Bollinger Bands
// ──────────────────────────────────────────────
BB_mult_TTMS     = input.float(2.0, "Bollinger Band STD Multiplier")
BB_basis_TTMS    = ta.sma(close, length_TTMS)
dev_TTMS         = BB_mult_TTMS * ta.stdev(close, length_TTMS)
BB_upper_TTMS    = BB_basis_TTMS + dev_TTMS
BB_lower_TTMS    = BB_basis_TTMS - dev_TTMS

// ──────────────────────────────────────────────
// Keltner Channels
// ──────────────────────────────────────────────
KC_mult_high_TTMS = input.float(1.0, "Keltner Channel #1")
KC_mult_mid_TTMS  = input.float(1.5, "Keltner Channel #2")
KC_mult_low_TTMS  = input.float(2.0, "Keltner Channel #3")
KC_basis_TTMS     = ta.sma(close, length_TTMS)
devKC_TTMS        = ta.sma(ta.tr, length_TTMS)

KC_upper_high_TTMS = KC_basis_TTMS + devKC_TTMS * KC_mult_high_TTMS
KC_lower_high_TTMS = KC_basis_TTMS - devKC_TTMS * KC_mult_high_TTMS
KC_upper_mid_TTMS  = KC_basis_TTMS + devKC_TTMS * KC_mult_mid_TTMS
KC_lower_mid_TTMS  = KC_basis_TTMS - devKC_TTMS * KC_mult_mid_TTMS
KC_upper_low_TTMS  = KC_basis_TTMS + devKC_TTMS * KC_mult_low_TTMS
KC_lower_low_TTMS  = KC_basis_TTMS - devKC_TTMS * KC_mult_low_TTMS

// ──────────────────────────────────────────────
// Momentum Oscillator
// ──────────────────────────────────────────────
mid = math.avg(math.avg(ta.highest(high, length_TTMS), ta.lowest(low, length_TTMS)), ta.sma(close, length_TTMS))
mom_TTMS = ta.linreg(close - mid, length_TTMS, 0)

momentumUp   = mom_TTMS > nz(mom_TTMS[1])
momentumDown = mom_TTMS < nz(mom_TTMS[1])

barColorUp   = color.new(color.aqua, 0)
barColorDown = color.new(#2962ff, 0)
barColorNegUp   = color.new(color.red, 0)
barColorNegDown = color.new(color.yellow, 0)

momColor = mom_TTMS > 0 ? (momentumUp ? barColorUp : barColorDown) : (momentumDown ? barColorNegUp : barColorNegDown)
barcolor(momColor)

// ──────────────────────────────────────────────
// Squeeze Conditions
// ──────────────────────────────────────────────
NoSqz_TTMS   = BB_lower_TTMS < KC_lower_low_TTMS or BB_upper_TTMS > KC_upper_low_TTMS
LowSqz_TTMS  = BB_lower_TTMS >= KC_lower_low_TTMS or BB_upper_TTMS <= KC_upper_low_TTMS
MidSqz_TTMS  = BB_lower_TTMS >= KC_lower_mid_TTMS or BB_upper_TTMS <= KC_upper_mid_TTMS
HighSqz_TTMS = BB_lower_TTMS >= KC_lower_high_TTMS or BB_upper_TTMS <= KC_upper_high_TTMS

plotchar(NoSqz_TTMS,   char='●', color=color.green,  title="No Squeeze (Green)")
plotchar(LowSqz_TTMS,  char='●', color=color.white,  title="Low Compression (White)")
plotchar(MidSqz_TTMS,  char='●', color=color.red,    title="Mid Compression (Red)")
plotchar(HighSqz_TTMS, char='●', color=color.orange, title="High Compression (Orange)")

// ──────────────────────────────────────────────
// Signal Logic
// ──────────────────────────────────────────────
TTMS_Signals_TTMS = mom_TTMS > 0 ? (momentumUp ? 1 : 2) : (momentumDown ? -1 : -2)

basicLongCondition  = redGreen_TTMS ? TTMS_Signals_TTMS == 1  : TTMS_Signals_TTMS > 0
basicShortCondition = redGreen_TTMS ? TTMS_Signals_TTMS == -1 : TTMS_Signals_TTMS < 0

entryLong  = highlightMovements_TTMS ? NoSqz_TTMS and basicLongCondition  : basicLongCondition
entryShort = highlightMovements_TTMS ? NoSqz_TTMS and basicShortCondition : basicShortCondition

entryLongFinal  = cross_TTMS ? not entryLong[1] and entryLong   : entryLong
entryShortFinal = cross_TTMS ? not entryShort[1] and entryShort : entryShort

TTMS_SignalsLongFinal  = use_TTMS ? (inverse_TTMS ? entryShortFinal : entryLongFinal)   : true
TTMS_SignalsShortFinal = use_TTMS ? (inverse_TTMS ? entryLongFinal  : entryShortFinal)  : true

// ──────────────────────────────────────────────
// Signal Plots + Background
// ──────────────────────────────────────────────
plot(TTMS_SignalsLongFinal  ? 1 : 0, title='TTMS Long Signal',  display=display.data_window)
plot(TTMS_SignalsShortFinal ? -1 : 0, title='TTMS Short Signal', display=display.data_window)

bgcolor(TTMS_SignalsLongFinal  ? color.rgb(0, 230, 119, 75) : na)
bgcolor(TTMS_SignalsShortFinal ? color.rgb(255, 0, 89, 75) : na)

📄 Important Disclosures

📢 Disclaimer: This indicator and article are for informational and educational purposes only. Nothing herein constitutes a buy or sell recommendation. I may or may not be holding a position in the securities discussed.

🧑‍💼 Rajneesh Sharma is a SEBI-registered Research Analyst
Reg. No.: INH000020332

📄 Investments are subject to market risks. Read all related documents carefully before investing.
📩 Investor Charter & SCORES grievance redressal information is available on our blog.

Closing Thought

Markets don’t break out because of indicators.
They break out because volatility cycles.

TTM Squeeze Advance is simply a lens to observe when the market is silent…
and when it may be preparing to speak.