Scanner for TTM squeeze, good daily liquidity, over $8. Detailed explanation at the bottom.
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[type is stock] and [sma(20,volume) > 2000000]
and [Upper BB(20,2) < Upper Kelt Chan(20,1.5,10)]
and [Lower BB(20,2) > Lower Kelt Chan(20,1.5,10)]
and [[group is SP500]
or [group is NASDAQ100]
or [group is SP400]
or [group is SP600]
or [group is SOX]
or [group is OSX]
or [group is XAU]
or [group is BTK]
or [group is DRG]
or [group is NWX]
or [group is XAL]
or [group is XBD]
or [group is XCI]
or [group is XNG]
or [group is XTC]
or [group is FinancialSector]
or [group is ConsumerStaplesSector]
or [group is CommunicationServicesSector]
or [group is EnergySector]
or [group is HealthCareSector]
or [group is IndustrialSector]
or [group is MaterialsSector]
or [group is RealEstateSector]
or [group is TechnologySector]
or [group is UtilitiesSector]
or [group is ETFNOUI]]
and [Close > 8.00]
if you want more charts, lower the minimum volume average.
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Got it 👍 — you’re looking at a StockCharts Advanced Scan that uses both Bollinger Bands (BB) and the Keltner Channel (KC) together. This combo is usually used to detect “squeezes” — periods of very low volatility that often precede an expansion/breakout.
🔑 What Each Piece Means
1. [sma(20,volume) > 2000000]
Only stocks with 20-day average volume > 2 million.
Filters for liquidity so signals are tradeable.
2. Bollinger Bands (BB)
Upper BB(20,2): 20-day SMA of price + 2 standard deviations.
Lower BB(20,2): 20-day SMA of price – 2 standard deviations.
BB width expands and contracts based on volatility. Narrow BBs = compression, wide BBs = expansion.
3. Keltner Channel (KC)
Upper Kelt Chan(20,1.5,10): 20-day EMA of price + 1.5 × 10-day ATR (Average True Range).
Lower Kelt Chan(20,1.5,10): 20-day EMA – 1.5 × ATR.
KC is an ATR-based channel (range-based, not standard-deviation-based like BB).
KC bands are usually smoother and more stable than BB.
4. The Core Conditions
[Upper BB(20,2) < Upper Kelt Chan(20,1.5,10)]
and
[Lower BB(20,2) > Lower Kelt Chan(20,1.5,10)]
This means:
The Bollinger Bands are fully inside the Keltner Channel.
Both the upper BB is below the upper KC, and the lower BB is above the lower KC.
✅ This condition defines the “squeeze setup.”
5. Group Filters
Limits scan to major indices, sectors, and ETFs (SP500, NASDAQ100, SOX, EnergySector, etc.).
Makes sure you’re only looking at widely traded stocks.
6. [Close > 8.00]
Excludes penny stocks / thinly traded equities.
Keeps scan focused on mid-price stocks or higher.
🧠 The Theory — Why This Matters
Bollinger Bands inside Keltner Channels = compressed volatility.
Market is in a tight range, volatility is low, “coiled spring” effect.
This condition is often used to anticipate a volatility breakout — either up or down.
Traders call this the “TTM Squeeze” setup (popularized by John Carter).
While in the squeeze: the market is quiet, traders wait.
Once BBs expand back outside the Keltner Channel, it signals the end of the squeeze and usually a sharp directional move.
📊 Trading Use
Scan finds stocks currently in a volatility squeeze.
Next step is to look for momentum confirmation (MACD, RSI, trend strength) to predict breakout direction.
Some traders buy straddles/strangles (options), others wait for the first directional close outside the BB.
✅ In short: This scan finds liquid, non-penny stocks in a volatility squeeze (BB inside KC).
It’s a watchlist generator for potential explosive moves once volatility returns.
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