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#11 flyers&divers

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Posted 01 August 2020 - 08:30 PM

Dex, since you're fishing, I'll bite.  What the heck is the "Squeeze Index" and how do you calculate it?  GOOGLE, despite its good earnings, couldn't give me an answer, and I couldn't find it in a quick wander around the TradingView website.  Thanks.

 

Regards,

Douglas (indicator junkie always looking for another fix)

The well known trader Jack Carter constructed and popularized the Squeeze Index and it is licensed to Ameritrade's Thinkorswim platform and maybe a few others.

There is a YUTUBE video in which Cater explains how it works.

 

It is not a forecasting tool. It signals when a trading vehicle - stock, futures, indiex,  is in a quiet spot in a strong trend after being active (as prices move in spurts). In a strong trend such condition marks a good 

point where a new price move could begin, not unlike having a Bollinger band squeezing into a similar length Keltner channel. The value of his indicator is that it makes that condition visually clear.

I do not remember Carter saying anything about using this to predict terminal tops or bottoms but like with any tool one could use it in ingenious, unintended ways.

Carter is one of the very few Guru type traders who actually knows what he is doing and proves it day after day.

 

Best,

F&D


"Successful trading is more about Sun Tzu then Elliott." F&D

#12 Dex

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Posted 01 August 2020 - 09:03 PM

 

Dex, since you're fishing, I'll bite.  What the heck is the "Squeeze Index" and how do you calculate it?  GOOGLE, despite its good earnings, couldn't give me an answer, and I couldn't find it in a quick wander around the TradingView website.  Thanks.

 

Regards,

Douglas (indicator junkie always looking for another fix)

The well known trader Jack Carter constructed and popularized the Squeeze Index and it is licensed to Ameritrade's Thinkorswim platform and maybe a few others.

There is a YUTUBE video in which Cater explains how it works.

 

It is not a forecasting tool. It signals when a trading vehicle - stock, futures, indiex,  is in a quiet spot in a strong trend after being active (as prices move in spurts). In a strong trend such condition marks a good 

point where a new price move could begin, not unlike having a Bollinger band squeezing into a similar length Keltner channel. The value of his indicator is that it makes that condition visually clear.

I do not remember Carter saying anything about using this to predict terminal tops or bottoms but like with any tool one could use it in ingenious, unintended ways.

Carter is one of the very few Guru type traders who actually knows what he is doing and proves it day after day.

 

Best,

F&D

 

read the previous post and make sure we are talking about the same thing.


"The secret of life is honesty and fair dealing. If you can fake that, you've got it made. "
17_16


#13 flyers&divers

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Posted 02 August 2020 - 10:19 AM

It is.

20,2 refers to the BB and 20, 1.5 to the Keltner channel.

 

F&D


"Successful trading is more about Sun Tzu then Elliott." F&D

#14 Douglas

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Posted 02 August 2020 - 03:54 PM

Dex & flyers&divers, thanks for the info on this trend change indicator.  It might be useful for predicting direction out of my risk windows.  Thanks again.

 

Regards,

Douglas



#15 CHAx

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Posted 03 August 2020 - 07:58 AM

Thank you for posting this TTM Squeeze and John Carter info.  I've been trading BB bands for a long time, this helped me improve my system for recognizing trend vs trading range.  You tube has some nice stuff of him explaining his tools.  I wish he had a more refined price momentum indicator, though.  Anyone want to add any thoughts on this aspect?

 

Also, based upon his explanation of the TTM Squeeze indicator, I do not believe his system is signaling a sell as your posts describes.  (though obviously a crash call could be right at any time)

https://www.youtube....h?v=4gdA-d1IhRE


Edited by CHAx, 03 August 2020 - 08:06 AM.


#16 CHAx

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Posted 03 August 2020 - 08:41 AM

Thank you for posting this TTM Squeeze and John Carter info.  I've been trading BB bands for a long time, this helped me improve my system for recognizing trend vs trading range.  You tube has some nice stuff of him explaining his tools.  I wish he had a more refined price momentum indicator, though.  Anyone want to add any thoughts on this aspect?

 

Also, based upon his explanation of the TTM Squeeze indicator, I do not believe his system is signaling a sell as your posts describes.  (though obviously a crash call could be right at any time)

https://www.youtube....h?v=4gdA-d1IhRE

 

23:30 he describes how he views volatility squeezes in up-trends.  Since we had a squeeze in volatility, followed by momentum renewing higher, his indicator suggesting the higher probability trade (the trade he would be taking), is for a move higher (though clearly we could resolve lower still, which sets off the possibility for a crash).


Edited by CHAx, 03 August 2020 - 08:44 AM.


#17 Darris

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Posted 03 August 2020 - 07:24 PM

The crash already happened back in March. Almost zero short covering so far in the SH etf.

Have not seen this large of a TQQQ redemption today since late Sept 2018.  Lot's of big redemptions the last few months under 1 billion, but today was near 1.3 Billion.  SQQQ took on 312 mil of the flip.



#18 Darris

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Posted 03 August 2020 - 10:15 PM

Also the Rydex NDX 2x monthly rebalance long fund dumped a majority of the assets, ~80% today.