TTM Squeeze (ThinkOrSwim style)

This script is a TradingView implementation of the classic TTM Squeeze indicator popularized in ThinkOrSwim.

It is not a line-by-line replica of the proprietary ThinkOrSwim study, but it follows the same core logic and purpose:
detecting volatility compression and release, combined with directional momentum, to anticipate strong price moves.

How it works

1. Squeeze condition (volatility)

Bollinger Bands (20, 2.0) are compared against Keltner Channels (20, 1.5).

When Bollinger Bands are inside the Keltner Channel, volatility is compressed (squeeze ON).

When Bollinger Bands expand outside the Keltner Channel, volatility is released (squeeze OFF).

This is shown by the dots on the zero line:

Red dots → Squeeze ON (low volatility, market coiling)

Green dots → Squeeze OFF (volatility expanding, potential move)

2. Momentum histogram

Momentum is calculated using a linear regression of price relative to a dynamic equilibrium level (similar to ThinkOrSwim’s internal logic).

The histogram shows both direction and acceleration.

Histogram colors:

Bright green → Momentum above zero and increasing (bullish acceleration)

Dark green → Momentum above zero but decreasing (bullish deceleration)

Bright red → Momentum below zero and decreasing (bearish acceleration)

Dark red → Momentum below zero but increasing (bearish deceleration)

How to use it

The indicator is best used in three steps:

Wait for red dots (squeeze ON) → volatility compression.

Observe the histogram direction building during the squeeze.

When dots turn green (squeeze OFF), look for entries in the direction of the histogram, ideally aligned with market structure.

This indicator is not meant to be traded mechanically.
It works best when combined with:

price structure

support/resistance

higher-timeframe context

Notes

Due to platform differences, results may vary slightly from ThinkOrSwim on individual bars.

Conceptually and operationally, the indicator fulfills the same role and trading logic as the original TTM Squeeze.