Bullish "Squeeze", What an Idea!!

Popularized by Sir John F. Carter

Key Components
1)Volatility Reduction
2)Momentum Direction

We will use LazyBear's Squeeze Momentum indicator.

(Skip to 4th tweet unecessary rant before that).

1) Volatility Reduction is Calculated with Help of Keltner Channels and Bollinger Bands(BB)

In BB, Upper and Lower Bands are formed by Standard Deviation of "averages" of Closing prices and are vulnerable to breakout on Small Price move

Keltner channel which uses (ATR) Average True Range for Upper and Lower Band is less vulnerable to false breakouts as it takes into consideration full prior moves by way of ATR rather than closing prices.

Now Coming back to the "squeeze" indicator (Squeeze Indicator by LazyBear we would use on Tradingview).

What is Bullish Squeeze?

Period When the Upper Band of BB falls & resides in Keltner's Upper Band it is called Squeeze!!

Now if you see at Bottom of Chart in above tweet there is an Indicator.

You seeing those crosses on Histogram.
That's your Holy Grail.
That's Volatility Contraction
😁

Read more about it

**MARKET WIZARD** ALERT

MARK D. COOK --- Farmer/Broker
& A Option Buyer

A thread in Collaboration with @kalpeshmewada49

MARK D COOK has a very interesting market story.

He was first fascinated with markets as he had some quick easy money options buying successful trade(1978)
Then he blew his entire capital on Options that expired worthless

For more Doses of Market Wizards follow
@WisdomsWizards

After that, he made lots of money selling options(Short straddle) and then blew all and much much more over a single trade(1982).

At the time of Stock Market Wizards(2001), he was USIC champion as an Option Buyer with annual returns ranging from 30% to 1400%

Let's find out how

He took a break from trading after the 1982 debacle and started again in 1984

His first big profitable year was 1986.
In 1986, he began keeping a 'daily trading diary'.

Every day he wrote down recurrent patterns that he noticed in the market.

One indicator he developed is what he called - "tick", which is the number of New York Stock Exchange stocks whose last trade was an uptick minus the number whose last trade was a downtick. When the market goes
up, the tick will be +=VE, and when it's going down, it will be --Ve.