Friday, March 22, 2013
Fibonacci Ticks 233-6765 TTM
Hopefully the concept of the TTM squeeze is becoming more apparent with continued postings. The indicator set-up at least two profitable trades, one short, and one long today--the breaks out of these were pretty easy to identify in real-time by watching the Wave and the position of the price relative to the Bollinger Band. To explain, if the Bollinger Band were displayed on the 6765 Tick chart we would see that price was running up against the upper band in the morning and coiling along the upper band for the second half of the day. If the histogram on the Squeeze is positive (Cyan/Blue) price is against the upper Bollinger Band and if it is negative (Red/Yellow) price is against the lower Bollinger Band. The squeeze turned green for three bars into the close, however the A Wave has not shown much of an increase at all. This action could act in the form of an analogy to a rubber band being snapped, where price has been pulled up away from the center and the snapping action will be downward, back through the area from which it originated.
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