Catch Breakouts Before They Happen - Squeeze Momentum Indicator — Transcript

Full transcript

1. 0:00this breakout strategy I'm about to show
2. 0:02you is one of the highest win rate
3. 0:04strategies you can possibly do in
4. 0:06trading it's very easy to use Works in
5. 0:08almost every single market and most
6. 0:10importantly it makes money well enough
7. 0:13talk let's dive straight into it
8. 0:16breakout strategies are one of my
9. 0:17favorite strategies I like to do in
10. 0:19trading but not all breakout strategies
11. 0:22are created equal some may work well in
12. 0:24certain market conditions but fail
13. 0:26miserably in other market conditions
14. 0:29that's why I want to intr ruce you to a
15. 0:30powerful indicator that can help you
16. 0:32catch breakouts before they even happen
17. 0:35this quiz momentum indicator to add it
18. 0:37to our charge we're going to click on
19. 0:39indicators then click on community
20. 0:41scripts then click on top then select
21. 0:44the very first indicator this one by
22. 0:46lazy bear now you may be thinking why
23. 0:49didn't we just search for the indicator
24. 0:51why go through all those steps well this
25. 0:54indicator is the most liked indicator on
26. 0:56trading view as of today it has just
27. 0:58over 83,000 likes and the only way to
28. 1:01know that there is no any other
29. 1:03indicator with more likes than this one
30. 1:05is by sorting them based on number of
31. 1:08likes so this is the squeeze momentum
32. 1:11indicator there are a few elements that
33. 1:13are not visible because of the dark mode
34. 1:15on trading view so let's change the
35. 1:17settings to make sure everything's
36. 1:19visible to do that just click here on
37. 1:22the style tuab change color one to
38. 1:24Orange and increase the opacity to
39. 1:27100% then change color to to White then
40. 1:31increase the opacity to
41. 1:33100% then click here and change the
42. 1:36display style to circles then here
43. 1:39you're going to increase color Z's
44. 1:41opacity to 100% and increase color 2's
45. 1:45opacity to 100% And then click okay the
46. 1:49squeeze momentum indicator is a
47. 1:50derivative of another indicator called
48. 1:52TTM squeeze which was created by John F
49. 1:55Carter a well-known Trader and author
50. 1:58this indicator is designed to identify
51. 2:00periods of consolidations in the market
52. 2:02which typically precede a significant
53. 2:04breakout move it's based on the premise
54. 2:07that when the market is in a period of
55. 2:08consolidation it's like a spring being
56. 2:11compressed and when that spring is
57. 2:13released it can lead to a super powerful
58. 2:16momentum move in One Direction now let's
59. 2:19explore this indicator as you can see
60. 2:21here it's made up of several different
61. 2:22components we have these bright green
62. 2:25and dark green bars then down here we
63. 2:28have these bright red and dark red bars
64. 2:31also in the middle here we have these
65. 2:33orange and white dots The Squeeze
66. 2:36momentum indicator measures two
67. 2:38different things in the market momentum
68. 2:40and volatility this histogram represents
69. 2:44bullish and bearish momentum the green
70. 2:46bars represent bullish momentum and
71. 2:49these red bars represent bearish
72. 2:51momentum for the strategy we're going to
73. 2:53do in this video we will only trade in
74. 2:55the direction of Market momentum then
75. 2:58these dots sitting on the Zero Z line
76. 3:00indicate Market volatility these orange
77. 3:03dots indicates that the market is in a
78. 3:05squeeze that basically means that the
79. 3:07market is consolidating or moving
80. 3:09sideways hence low volatility when the
81. 3:12market breaks out of the consolidation
82. 3:14phase and the volatility increases the
83. 3:16dots change color from Orange to White
84. 3:19the traditional way of using this
85. 3:21indicator to trade is like this when
86. 3:23these dots change color from Orange to
87. 3:25White and the histogram bar is bright
88. 3:28green you take a long trade and when the
89. 3:31dots change color from Orange to White
90. 3:34and the histogram bar is bright red you
91. 3:36take a short
92. 3:37trade however using this indicator to
93. 3:40trade this way is just okay to be honest
94. 3:43in order to take our strategy from being
95. 3:45okay to great we need to add two more
96. 3:49indicators to the Chan the first one is
97. 3:51called moving average this one under
98. 3:54technicals and the second one is called
99. 3:56support and resistance levels with braks
100. 3:59this one by Lu algo double click on the
101. 4:02moving average to access the settings on
102. 4:04the input tab change the length to 200
103. 4:08then on the style tuab change the color
104. 4:10to whatever you
105. 4:11want then double click on the support
106. 4:13and resistance indicator and on the
107. 4:16style tub change the resistance color to
108. 4:19green and then change the support color
109. 4:21to Red so here's how we're going to
110. 4:24combine these three indicators to create
111. 4:26our profitable trading strategy the most
112. 4:29important thing is Trend confirmation
113. 4:31and this moving average is going to be
114. 4:33used for that the dots of the squeeze
115. 4:35momentum indicator are going to be used
116. 4:37as Buy sell entry signals then we're
117. 4:40going to use the squeeze momentum
118. 4:41histogram to ensure that we're only
119. 4:43trading in the direction of Market
120. 4:45momentum then our final entry
121. 4:48confirmation is going to be a break
122. 4:50outside of a support or resistance level
123. 4:52and the Lux Alo support and resistance
124. 4:54indicator is going to be used for that
125. 4:57now we're going to explore the
126. 4:58conditions needed for entering trades
127. 5:00with this strategy but before that what
128. 5:02broker do you guys use to trade
129. 5:04personally I use hker trade as you can
130. 5:06see here this is my trading history I
131. 5:09mainly sculpt gold and up here you can
132. 5:11see that it's a live account the reason
133. 5:13why I love henko trade so much is
134. 5:15because of their extremely low
135. 5:17commissions and spreads on Forex for
136. 5:19example the spreads can go as low as 0.0
137. 5:22Pips which is the lowest it can go for
138. 5:24those of you who love High leverage hker
139. 5:27trade offers up to 500x Leverage which
140. 5:30basically means that my $1,000 deposit
141. 5:32could have the buying power of
142. 5:35$500,000 which is really insane and if
143. 5:38that's not enough they're also going to
144. 5:40give you a 100% bonus for all your
145. 5:42deposits up to
146. 5:44$25,000 so if you deposit say $500
147. 5:47they're going to give you a bonus of
148. 5:49$500 so you'll have $1,000 to trade with
149. 5:53to get access to the bonus as well as
150. 5:55all the other perks sign up to heno
151. 5:56trade using the link in the description
152. 5:58of this video now now back to the video
153. 6:00to enter a long trade first the market
154. 6:03should be trading above the moving
155. 6:05average to indicate that it's in a
156. 6:06bullish Trend second the price must
157. 6:09break and close above the resistance
158. 6:11Zone represented by this green line
159. 6:13let's extend it to the right by adding a
160. 6:15horizontal line right here the third
161. 6:18condition is that the squeeze momentum
162. 6:20histogram should be colored bright green
163. 6:22like it is right here to indicate that
164. 6:24the market has a high enough bullish
165. 6:26momentum to push the price in the
166. 6:28direction of our trade if it's colored
167. 6:30dark green like it is right here we
168. 6:33simply skip that setup then lastly on
169. 6:35the squeeze momentum indicator we need
170. 6:37to have at least six consecutive orange
171. 6:40dots followed by a single white dot this
172. 6:44white dot signifies an increase in
173. 6:45volatility which basically indicates
174. 6:48that the market is starting to break out
175. 6:49of a squeeze or a consolidation phase
176. 6:53this is our entry signal we're going to
177. 6:55enter a long trade here set our stop
178. 6:57loss below the most recent swing low
179. 7:00for the take profit we're going to set
180. 7:02it at two times the
181. 7:04risk we let this trade
182. 7:07run and take profit one thing to note
183. 7:10about this strategy is that this white
184. 7:12dot doesn't need to align with the break
185. 7:14of the resistance level if it doesn't
186. 7:16come by the time this breakout happens
187. 7:18you just wait for it on the next few
188. 7:20candles but up to a maximum of four
189. 7:23candles after the breakout if it comes
190. 7:25later than four candles after the
191. 7:26breakout you simply skip that setup Let
192. 7:29Me Show an example example as you can
193. 7:30see here the market was trading above
194. 7:32the moving
195. 7:33average then the price broke and closed
196. 7:36above the resistance level but the dots
197. 7:38were still colored orange we fast
198. 7:41forward for a
199. 7:44bit and then four candles later we see
200. 7:47that the dots finally changed color to
201. 7:49white we also see that the squeeze
202. 7:51momentum histogram was colored bright
203. 7:53green so this becomes our entry candle
204. 8:11if you like this video so far take a
205. 8:13second and hit that like button below it
206. 8:15really means a lot now what are the
207. 8:16conditions for entering a short trade
208. 8:18well let me explain first the market
209. 8:21should be trading below the moving
210. 8:22average to indicate that it's in a
211. 8:24bearish trend second the price must
212. 8:26break in close below the support level
213. 8:28represen Ed by this red line let's
214. 8:31extend it to the right by adding a
215. 8:33horizontal line right
216. 8:36here the third condition is that the
217. 8:39squeeze momentum histogram should be
218. 8:40colored bright red like it is right here
219. 8:43to indicate that the market has enough
220. 8:45bearish momentum to push the price in
221. 8:46the direction of our trade if it's
222. 8:48colored dark red like it is right here
223. 8:51we simply skip that setup then lastly on
224. 8:54the squeeze momentum indicator we need
225. 8:55to have at least six consecutive orange
226. 8:58dots followed by a a single white dot
227. 9:01this white dot signifies an increase in
228. 9:03volatility which basically indicates
229. 9:05that the market is starting to break out
230. 9:07of a squeeze or a consolidation phase
231. 9:10this is our entry signal we're going to
232. 9:12enter a short trade here set our stop
233. 9:15loss above the most recent swing High
234. 9:17which is this one right here for the
235. 9:19take profit we're going to set it at two
236. 9:21times the
237. 9:22risk we let this trade
238. 9:25run and take profit this is just one of
239. 9:30the many strategies that you can do
240. 9:31using the squeeze momentum indicator
241. 9:33lazy bear the creator of this indicator
242. 9:36even suggests using it to trade
243. 9:37divergences which will be a story for
244. 9:40another day that's been it for this
245. 9:41video hope you found on value if you did
246. 9:43hit the like button below and consider
247. 9:45subscribing to stay tuned thanks for
248. 9:47watching and I'll see you guys next time