The Ultimate Stock Scan in ThinkOrSwim TOS using TTM Squeeze

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The Ultimate Stock Scan in ThinkOrSwim TOS using TTM Squeeze

In this article, we will discuss the ultimate stock scan using the TTM Squeeze indicator in ThinkOrSwim (TOS). The TTM Squeeze indicator helps traders identify stocks that are in a volatility squeeze pattern, which often leads to significant price movements. We will also show you how to set up the TTM Squeeze scan in TOS, making it easier to find potential trading opportunities.

Introduction

Finding the next big winner in the stock market can be a challenging task. However, by using the TTM Squeeze indicator and a custom scan, you can identify stocks that are in a volatility squeeze pattern, increasing your chances of finding profitable trading opportunities. The volatility squeeze pattern consists of a stock consolidating after a period of uptrend, and then breaking out with increased volume. This pattern often leads to substantial price movements with favorable risk-reward ratios.

How to Use the TTM Squeeze Indicator

The TTM Squeeze indicator is available in the ThinkOrSwim platform and provides real-time information about stocks that are in a volatility squeeze pattern. When using the indicator, red circles indicate that a stock is in a squeeze, and green circles with volume bars indicate a breakout from the squeeze pattern. It is important to note that the TTM Squeeze indicator should be used in conjunction with price and volume analysis to confirm trading signals.

Setting Up the TTM Squeeze Scan in ThinkOrSwim

To make the process of finding stocks in a volatility squeeze pattern more efficient, you can set up a custom scan in ThinkOrSwim. Here is a step-by-step guide on how to create the scan:

  1. Go to the "Scan" tab in ThinkOrSwim.
  2. Click on the menu button on the right side and select "Load Scan Query."
  3. Choose "Create Scan Query" and give it a name.
  4. Delete the existing filters.
  5. Add a stock type filter with a minimum market cap of one billion dollars.
  6. Add a custom study filter with the following think script: [THINKSCRIPT CODE]
  7. Add another custom study filter with the following think script: [THINKSCRIPT CODE]
  8. Delete the remaining filters.
  9. Add a study filter for the 50-day and 200-day moving averages to ensure the stock is in an uptrend.
  10. Add a price performance filter to find stocks near their 52-week highs.
  11. Save the scan query and run the scan.

After setting up the scan, the ThinkOrSwim platform will display a list of stocks that meet the criteria. You can then analyze these stocks individually, set price alerts, and wait for breakout opportunities.

Summary of the Article

The ultimate stock scan in ThinkOrSwim using the TTM Squeeze indicator allows traders to identify stocks that are in a volatility squeeze pattern. By setting up a custom scan, you can quickly find stocks that meet specific criteria, such as market cap, average volume, moving average crossovers, and proximity to 52-week highs. The TTM Squeeze indicator is a valuable tool for identifying stocks in a squeeze pattern, but it should be used in conjunction with price and volume analysis for confirmation.

Keywords: Stock scan, ThinkOrSwim, TOS, TTM Squeeze, Volatility squeeze, Indicator, Breakout opportunities, Moving averages, Price performance, Market cap, Average volume, Trend analysis.

FAQ

  1. What is the TTM Squeeze indicator? The TTM Squeeze indicator is a technical analysis tool that helps traders identify stocks that are in a volatility squeeze pattern. It uses color-coded circles to indicate when a stock is squeezing or breaking out of the squeeze pattern.

  2. How do I set up the TTM Squeeze scan in ThinkOrSwim? To set up the TTM Squeeze scan in ThinkOrSwim, you need to create a custom scan query with specific criteria. These criteria may include market cap, average volume, moving average crossovers, and proximity to 52-week highs.

  3. How can the TTM Squeeze indicator help improve my trading? The TTM Squeeze indicator can help improve your trading by identifying stocks that are in a volatility squeeze pattern. These patterns often lead to significant price movements, providing traders with potential breakout opportunities.

  4. Why is price and volume analysis important when using the TTM Squeeze indicator? While the TTM Squeeze indicator can help identify stocks in squeeze patterns, price and volume analysis is essential for confirming trading signals. It is crucial to analyze the price action and volume patterns to ensure that the breakout is supported by strong buying or selling pressure.