TTM Regression°

٥ يوليو ٢٠٢٢

This oscillator attempts to provide context to John Carter's "TTM Squeeze" indicator.

Similar to my MAR° indicator, statistically significant areas based on the past n candles (Lookback) are calculated to provide context for the y-axis values of the TTM indicator.
Note that Carter's squeeze idea has been dropped in favour of the regression bands, in that they offer a clear visual momentum squeeze condition.

The regression bands identify temporary exhaustion of bullish (purple) and bearish (green) momentum; these could potentially be seen as overbought and oversold indications.
The dotted midlines dictate intra-zones where momentum could reverse to continue the larger trend.
All the latter behave similarly to Support and Resistance zones.

The oscillator can also be normalized over a given interval to show results on a scale between 0 and 100, preserving even more context over time.
You should experiment for yourself to find out what is best for you in terms of scale, and Normalization Period.

Normalization Example: on the left you can observe how the momentum is visualized differently based on the scale, given the rapid momentum to the upside.

// –––. Regular


// –––. Normalized


It's crucial to use this oscillator as confluence only and not to take trades based solely on its indications.

At the moment there are no alerts set for this script, open to suggestions :)