TTM (Trade The Matrix) Squeeze EMA Cloud

https://www.tradingview.com/x/vrRBEzYM/

Another way to simply visualize the TTM squeeze but this time with a simpe 2 EMA cloud representation. Fully customizable - change EMA, color, & squeeze to your liking

The **"TTM Squeeze EMA Cloud"** is a **custom TradingView Pine Script (v6)** indicator that **combines the classic TTM Squeeze volatility logic** with a **colored EMA cloud** to visually represent **market state**:
- **Consolidation (Squeeze ON)**
- **Bullish Breakout (Squeeze OFF + Uptrend)**
- **Bearish Breakout (Squeeze OFF + Downtrend)**

It overlays directly on the price chart (`overlay=true`) and uses **color-coded cloud shading** between two EMAs to make the current regime **immediately visible**.

---

## CORE COMPONENTS

| Component | Purpose |
|--------|--------|
| **TTM Squeeze** | Detects low-volatility consolidation (Squeeze ON) vs. volatility expansion (Squeeze OFF) |
| **EMA Cloud** | Fast EMA (8) vs. Slow EMA (21) → determines trend direction |
| **Cloud Fill** | Colors the area between EMAs based on **Squeeze + Trend** |
| **Visual Cues** | Tiny yellow dots below bars when Squeeze is ON |

---

## USER INPUTS (Customizable)

| Input | Default | Description |
|------|--------|-----------|
| `length` | 20 | Period for Bollinger Bands & SMA basis |
| `mult` | 2.0 | Bollinger Band multiplier |
| `lengthKC` | 20 | Period for ATR in Keltner Channels |
| `multKC` | 1.5 | Keltner Channel multiplier |
| `fastLength` | 8 | Fast EMA length |
| `slowLength` | 21 | Slow EMA length |

> These are standard settings — tweak for sensitivity.

---

## CALCULATIONS (Step-by-Step)

### 1. **Bollinger Bands (BB)**
```pinescript
ma = ta.sma(close, length)
stdDev = ta.stdev(close, length)
upperBB = ma + stdDev * mult
lowerBB = ma - stdDev * mult
```
- Measures **statistical volatility**

### 2. **Keltner Channels (KC) – ATR-based**
```pinescript
atrValue = ta.atr(lengthKC)
upperKC = ma + atrValue * multKC
lowerKC = ma - atrValue * multKC
```
- Measures **true range volatility** (more adaptive than stdev)

### 3. **TTM Squeeze Condition**
```pinescript
squeezeOn = (lowerBB > lowerKC) and (upperBB < upperKC)
```
- **True** when **BB is completely inside KC** → **Low volatility = Consolidation**
- **False** → **Volatility expanding = Breakout phase**

---

### 4. **EMA Cloud (Trend Filter)**
```pinescript
fastEma = ta.ema(close, fastLength) // 8-period
slowEma = ta.ema(close, slowLength) // 21-period
```
- Fast EMA reacts quickly, Slow EMA is smoother
- **Trend = fastEma > slowEma → Bullish**, otherwise Bearish

---

### 5. **Cloud Coloring Logic**

| Condition | Cloud Color | Meaning |
|--------|------------|--------|
| `squeezeOn == true` | **Bright Green-Yellow** (`#00ff59`) | **Squeeze ON** → Consolidation |
| `squeezeOn == false` AND `fastEma > slowEma` | **Cyan** (`#00fff7`) | **Squeeze OFF + Bullish** |
| `squeezeOn == false` AND `fastEma < slowEma` | **Red** (`#ff0000`) | **Squeeze OFF + Bearish** |

> The **cloud fills the space between fast and slow EMA** with the appropriate color.

---

## PLOTS & VISUALS

| Element | Description |
|-------|-----------|
| `fill(p1, p2, color=cloudColor)` | **Main EMA Cloud** – colored by regime |
| `plot(fastEma)` | Thin **blue line** (Fast EMA) |
| `plot(slowEma)` | Thin **orange line** (Slow EMA) |
| `plotshape(squeezeOn)` | **Tiny yellow circles below bar** when Squeeze is ON |

> Clean, minimal overlay — no histogram or candles

---

## HOW TO READ THE INDICATOR

| Visual | Market State | Interpretation |
|-------|-------------|----------------|
| **Yellow-Green Cloud** + **Yellow Dots** | **Squeeze ON** | Price is consolidating. **Prepare for breakout** |
| **Cyan Cloud** | **Squeeze OFF + Uptrend** | **Bullish momentum building** → Potential long entry |
| **Red Cloud** | **Squeeze OFF + Downtrend** | **Bearish momentum building** → Potential short entry |
| **Cloud narrowing** | EMAs converging | Trend weakening or reversal possible |
| **Cloud widening** | EMAs diverging | Trend strengthening |

---

## TRADING STRATEGY (Example)

### **Long Setup**
1. Wait for **Yellow-Green Cloud + Yellow Dots** → Squeeze ON
2. Watch for **cloud to turn Cyan**
3. Enter **long** when:
- Price breaks above recent high
- Volume increases (optional)
4. **Stop Loss**: Below slow EMA or recent swing low
5. **Take Profit**: Next resistance or trailing stop

### **Short Setup**
1. Wait for **Yellow-Green Cloud**
2. Enter **short** when cloud turns **Red**
3. Confirm with price breaking lower

> **Best used as a regime filter** — combine with price action, support/resistance, or volume.

---

## KEY ADVANTAGES

| Feature | Benefit |
|-------|--------|
| **One-glance regime detection** | No need to interpret multiple indicators |
| **Cloud = Trend + Volatility** | Combines momentum and consolidation |
| **Clean visuals** | Doesn’t clutter the chart |
| **Adaptive to volatility** | KC uses ATR → better in trending markets |
| **Early breakout signal** | Squeeze OFF often precedes big moves |

---

## LIMITATIONS

| Issue | Note |
|------|------|
| **Lagging EMAs** | 8/21 are reactive, not predictive |
| **No momentum strength** | Unlike histogram versions, no intensity measure |
| **False breakouts** | Squeeze OFF doesn’t guarantee follow-through |
| **Repainting?** | No — all calculations are bar-close based |
| **No alerts built-in** | You’d need to add `alertcondition()` manually |

---

## BEST USE CASES

| Market | Timeframe | Pair With |
|-------|----------|----------|
| Stocks, Crypto, Forex | 1H, 4H, Daily | Volume, RSI, Support/Resistance |
| Swing Trading | Yes | Breakout strategies |
| Scalping | No | Too slow |

---

## COMPARISON TO OTHER TTM VERSIONS

| Feature | This Version | Typical TTM Squeeze |
|-------|-------------|-------------------|
| Visual Output | EMA Cloud | Histogram + Dots |
| Trend Filter | EMA Crossover | Momentum Oscillator |
| Colors | 3-state cloud | 4–5 candle colors |
| Clutter | Low | Medium–High |
| Focus | Regime + Trend | Momentum + Squeeze |

> This version is **cleaner and more trend-focused**.

---

## SUMMARY: What This Indicator Does

> **"TTM Squeeze EMA Cloud"** is a **visual market regime detector** that:
> 1. **Identifies low-volatility consolidation** (Squeeze ON → Yellow-Green cloud)
> 2. **Signals volatility expansion** (Squeeze OFF)
> 3. **Colors the EMA cloud** to show **bullish or bearish breakout direction**
> 4. **Overlays clean trend lines** (8 & 21 EMA) for context

---

**Perfect for traders who want a simple, colorful way to:**
- Spot **consolidations before breakouts**
- Confirm **trend direction** during volatility expansion
- Avoid trading **choppy, low-momentum ranges**

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**Pro Tip**: Add this to your chart and **watch for cloud color changes** — they often precede **high-probability breakout trades**.