Squeeze Momentum Mt4 Indicator

Squeeze Momentum Indicator is a premium forex MT4 indicator downloaded from forexprofitway a derivative of ‘TTM Squeeze” by John Carter. It is a volatility indicator, discussed by John Carter in his “Mastering the Trade Book: chapter 11”.

Squeeze Momentum Indicator Overview

The most significant part of this indicator is the black cross. When black crosses the midline, it will indicate that the price is going to be squeezed. The low volatility and correction may provide an explosive move towards both upside and downside, known as “Squeeze release.”

Mr. Carter uses a momentum indicator beside the black cross to determine the market direction. If the momentum is above zero, it is a buy trend, and if the momentum is below zero, it is a sell trend. However, it is not mandatory to sue the momentum trading indicator as traders can use the oscillators to determine the market direction.

Elements of the Squeeze Momentum Indicator

The Squeeze momentum indicator has three elements, as mentioned below:

  • Keltner Channel
  • Bollinger bands
  • Momentum Oscillator

When the market moves with low volatility, the Bollinger bands will become narrow and trade inside the Ketner Channel. Later on, these two elements can contract to get the energy before starting an explode.

How to Read the Squeeze Momentum Indicator?

The red and green lines, along with the zero lines, will indicate a market squeeze where the red dot will represent that the market squeeze is the effect. Moreover, the green dot means there is not squeezed in the price. When a green dot appears after some red dots, it will indicate that the squeeze is going to be fired.

On the other hand, the histogram in this trading indicator will provide the market momentum. The green histogram will represent a bullish momentum while the red histogram will represent the bearish momentum.

How to Trade Using the Squeeze Momentum Indicator?

We can use this indicator to enter the market for a trade or to know when to stay out of the market.

  • Timeframe: This indicator works well in all timeframes from 1 hour to 1 week.
  • Currency pair: it works well in all currency pairs.

The trading idea based on this indicator is when the squeeze happens, it will last for 8 to 10 candles. The stop loss should be below or above the candle from where the squeeze happens, and the take profit would be at 8 to 10th candle.

Summary

Let’s summarize the Squeeze Momentum Indicator:

  • This indicator provides a trading opportunity when the price starts to move from a squeeze.
  • The red and green lines, along with the zero lines, will indicate a market squeeze.
  • This indicator also influences traders to get out of trading when the price is squeezing.

Forex – Have Success In What You Are Doing!

Forex allows traders to make money no matter where they are in the world. Through the use of Forex trading, a trader will be analyzing the current markets of an economy and will buy their currency in hopes that the price of the currency will rise.

There are many ways in which a person can find success with Forex, but the most prominent is through the strategies that the trader uses. Through years of experience, a trader will find that certain tips they pick up along the way work better than others to increase their profit margins.

The currency of one country will be exchanged for money in another. We are not sure if you realize it or not, but the currencies in the world today are always changing the exchange rate.

They are always traded in pairs, Dollar/Yen, etc. In fact, eighty five percent of the transactions that take place throughout the day are involved in currency trading.

If you are interested in the Forex trading system and you would like to have more knowledge on it, then continue reading this article.

As a Forex trader, you will be required to monitor the system constantly. As long as you monitor it all the time, you will be able to succeed at what you are doing.

Without the proper techniques of analyzing, you may end up being a big loser. It is not easy to win the Forex market, but with the proper strategies, you will be able to.

The Forex software that is available to install on the computer is very interesting. In today’s world, you will be able to find programs that are high tech. We highly recommend you researching and finding the best type as this will help determine your success rate.

You should know that in the market, history is going to repeat itself… Eventually. You should study the past market and familiarize yourself with the past prices. You are going to need a number of different charts.

You will also need some graphical methods, technical indicators and don’t forget about the analytical methods. During the technical analysis, you should know that this is going to take a lot of patience, time and concentration.

Those interested in the Forex trading system should never jump in blindly. There are many trial accounts you can use in order to get the feel of it.

The following Forex tips will lead a new and experienced trader to increase their own profits immediately:

  • Pick a strategy: Following a proven strategy is often the ticket to success. The three big strategies are: the momentum, carry and value trade. Following one of these strategies and becoming a master of the chose strategy will provide success.
  • Risk management: It is easy to put all of your eggs in one basket, but this is not a smart move. Before the trading day begins, know how much you can afford to lose on the given day and set your limits appropriately.
  • Automate: Once all of the basics have been mastered, it is time to start the automation process. This allows for trades to be made faster and more precisely. This does not mean that robots need to be used to make automatic trades, rather, this means that a person will automatically recognize a potential trade through current trends. If a currency is trending and a lucrative trade can be made, this has to be done as quickly as possible. Patterns and time will turn any trader into one that can virtually automate their trades.