Triple Squeeze combines the power of the Squeeze across three instruments: a stock, the sector in which the stock trades, and the index. These sequential Squeezes are some of the most powerful signals we follow. Triple Squeezes will show up when the stock, sector, and index are all squeezing on a specific timeframe. The idea behind this indicator is that each Squeeze setup indicates price compression and when the stock, sector, and index all fire those lead to directional trades that we want to be in. Having the stock + sector + index in simultaneous Squeezes is the holy grail of Squeeze setups. If we can identify these times when a market is “coiling” we can be in a position to take advantage of one of the strongest directional move indicators we have.
Available On: ThinkorSwim, TradeStation
How Do We Use It?
Every trader at Simpler Trading uses the Squeeze, and for good reason. There is no better indicator to show these times of opportunity right before a directional move.
This is an important indicator because a squeeze can be a harbinger of a major directional move to come. This gives us an edge when trading stocks, options, or futures and we like to focus on these setups.
Squeezes happen on all timeframes and the best setups are the ones that have multiple squeezes on multiple timeframes.
Triple Squeeze was designed to find these setups so we can be positioned before the explosive move occurs.