TiTTs2 – Using $Tick, $ADD, Momentum

This is a study of using TiTTs2 on the 12 September 2022. In this trade, we analysed the momentum dots acting together with the market internal of $Tick and $ADD.

TiTTs trading system with market internals 12 September 2022 — Chart 1: 12 September 2022 – 1 minute chart showing the Entry points and also the possible Exit points

In chart 1 above, it started before market Open and here, we have only the momentum dots and the moving averages lines of 8 EMA, 21 EMA and 55 SMA and the ATR Trailing StopLoss to guide us. What is noted is in an UpTrend with the moving averages stacked below the candle, the candle tends to trend nicely above the 8 EMA. Likewise in a DownTrend with the moving averages stacked above the candle, the candle trends smoothly below the 8 EMA.

But when the candle is trending upwards and there are moving averages such as the 89 SMA, 144 SMA and the 233 SMA above it, the upTrend is more volatile with the occasional dip below the 8 EMA. Those moving averages become Resistance lines. Same comment for the downTrend when there are higher moving averages below it, those moving averages can become support lines.

In chart 2 above, we see there was support at the 89 SMA. Then there was the smooth upTrend with the moving averages stacked below the 8 EMA until it reached an overbought condition. It pulled back to the 34 EMA and found support and started trending upward. Note that the moving averages are stacked below the 8 EMA.

Chart 3 is a continuation of chart 2 with more commentaries and analysis. In chart 3, we can see that the $Tick and $ADD dots remains Green while the candles trends above the 8 EMA. In fact, the $Tick dots remained Green for a long time even when the $ADD were changing colours. Also the Momentum dots were Green. Hence when all these dots are the same colour, the probability is very high and one can enter and keep holding onto the trade.

Chart 4 shows the market internal charts ie. the $Tick and $ADD. When both the market internals are in sync for example when both dots are Green, then we expect the /RTY to trend upwards. Likewise when both dots are White, then we can expect /RTY to trend downwards.

As a precaution, we would want the momentum dots to be the same colour to give an even higher probability of succeeding in the trade whether Buying Long or Selling Short.