QTiTTs – Emphasis on 4-Quadrant TiTTs

This is a study of using QTiTTs on the 5 October 2022. We have a name change to QTiTTs to emphasize that we are analysing the market using the 4 Quadrant method within TiTTs. This simplifies somewhat our analysis and also simplifies the way we trade. Essentially we are waiting for 2 signals. They are as follows:
1. The 8 EMA crossing over the 21 EMA. For Bullish trade, it is crossing ABOVE and for Bearish trade, it is crossing BELOW.
2. For Bullish trade, the candle close must be above the 55 SMA.
3. For Bearish trade, the candle close must be BELOW the 55 SMA.

And that is the core of the QTiTTs rules.

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 have renamed as QTiTTs. QTiTTs stands for 4-Quadrants Trend-In-Trend trading system. In QTiTTs, we look at moving averages of higher timeframes as well. All moving averages in different timeframes can become Support and Resistance.

TiTTs trading system with market internals 5 October 2022 — Chart 1: 5 October 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 9:32 am, there was a big decisive Bullish candle upward and the direction upward was set. There was the Bullish vertical line and the candle close was above the 55 SMA.

But this happened for only 5 candles before the Bears took it back down and a Bearish Vertical line appeared. And this volatility persisted till 10:00 am before the Bears took it down and from then it went down and down till 10:38 am when the Bearish Trend dot was lost. This signalled the end of the Bearish Trend.