TiTTs – 30 Sep 2022 – Buy / Sell Zone Quadrants with TiTTs

This is a study of using TiTTs on the 30 September 2022. The new idea is to see the market in terms of Buy/Sell zones in 4 quadrants. We then trade the quadrants using the Momentum/Trend trading system which we name TiTTs. TiTTs stands for Trend-In-Trend trading system. In TiTTs, we look at moving averages from higher timeframes. All moving averages in different timeframes can become Support and Resistance.

TiTTs trading system with market internals 30 September 2022 — Chart 1: 30 September 2022 – 1 minute chart showing the Entry points and also the possible Exit points

Chart 1 above shows Buy/Sell quadrants. On the horizontal timescale, the Vertical line represent the 8/21 EMA crossing. When 8 EMA crosses above the 21 EMA, it forms a vertical line and we are now in the Buy zone. The 55 SMA is the other Buy/Sell zone dividing line. Above the 55 SMA is the Buy zone and below the 55 SMA is the Sell zone. Hence we have a quadrant.

Although there are 4 quadrants, only the Upper Right and the Lower Left quadrants are of interest. The Lower Left quadrant is the Sell zone and the Upper Right quadrant is the Buy quadrant.

In chart 1 above, when market opened at 9:30 am, it was in the Sell zone. As usual at market open, it was volatile and the Candle Close was jerking Up and Down. The Bears and Bulls were battling it out with seemingly no direction. Finally at 9:42, there was a big decisive Bullish candle upward and the direction upward was set.

Chart 2 shows the TiTTs with the Buy/Sell zones. Together with the Momentum/Trend dots, we can trade with high confidence that the trade will work out. Volatility i the enemy of the trader and it is easy to be shaken out of trades by volatility.

Earlier after the market Open and when the direction has been set, the /RTY had to push its way past the moving averages from higher timeframe such as the 3 min and 10 min. Then it was in clear and it still took time to grind its way upward.