The TTM Squeeze can be used for Daytrading but only on longer timeframes such as 15 minute or 60 minutes IMHO.  On 1,2,3,5 minute charts you will find many false signals and become frustrated with whipsaws.  You can use the 15, 60 minute time frames to alert you to stocks that have made strong moves during the first hour of trading and are now starting to consolidate (Squeeze) for their next move up/down.

However as I said in a previous post IMHO the TTM works best on Weekly and Daily charts on stocks that have strong momentum, pause (Squeeze) then explode for their next move. It is illustrated on the chart of Yelp above.  Where I drew the arrows pointing to the BBands outside of the KBands you can see the stock paused sideways then exploded to the upside.  

Here is an example of Bollinger Band overlaid on Keltner Bands using TC2000 v12.3

One correction to my post I described the expansion backwards.

What I should have said was after contracting when the BBands expand outside the Keltner bands that's when the TTM Squeeze will give a signal.

TTM Squeeze works best with stocks in strong trends on a daily or weekly timeframe, sideways stocks will give many bad whipsawing signals. 

Years ago I used TradeStation for my daytrading platform, the TTM indicator origins hail from the TS EasyLanguage forums and according to many posters there the TTM formulas are nothing more than mods used from the TS forums

Originally called the Senters Squeeze (Hubert Senters from TTM is not the originator of this indicator as it was modified from the TS forums)  I have an old CD of his which explains the logic in detal.

The TTM Squeeze is simply a 20 period 2.0 Deviation Bollinger Band with a 20 period 1.5 ATR Ketlner Band overlaid on the BBand.  

The TTM Squeeze can be easily duplicated with no programming by overlaying the two bands and setting the parameters above.

When the Keltner bands begin contracting inside the BBand the TTM indicator begins painting dots on the Histogram zero line (I use yellow dots on my software)

After contracting when the Keltner bands expand outside the BBands the TTM indicator gives a signal usually a blue dot to point out a buy or sell signals (I use Red and Green dots in my software) 

As for the Histogram, this is where there are many variances, I've seen standard deviation to linear regression for smoothing.  I have found momentum to give the smoothest ROC of the histogram and better represent the ROC of the price action.