QTiTTs – Initial Sell Signal at 8:30 pm

This is a study of using QTiTTs on the 12 October 2022. In today’s trading, there was a news report at 8:30 am and the /RTY sold off at #1. This was a decisive and significant Sell signal and we assume that the market should carry on with it being Bearish when market opened at 9:30 am ET.

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

In chart 1 above, we have the main chart (/RTY) and the understudies which are the $Tick and $ADD. Here at the beginning of the market open at 9:30 am, we noticed the following:

#2 and #3 – At market Open at 9:30 am, it sold off. The only problem was putting in a Sell trade in ToS which as unable to execute the trade. It had to be re-entered before the trade went through but at the speed the market was moving, a less than ideal entry point was entered. This ended up being a profitable trade.

#4 – The /RTY tried to move above the 21 EMA and met resistance. The bears sold it down. The trade here is to wait for sign that it was unable to break above the 21 EMA. Then it would be better to take the Short trade for a quick Entry and then Exit.

#5 – The /RTY came back up again and this time, it was above to break above the 21 EMA. If there was a Short position set at 21 EMA, it would have resulted in an immediate loss. Here we observed that it was unable to break above the 55 SMA. When that happened, we then take Enter with a Short Sell. The bears managed to bring the /RTY quite a distance down. It would be a nice profitable trade.

#6 – The /RTY came back up and tried to break above the 55 SMA and again, it met resistance and was sold off.

#7 and #8 – The exit signals for the Short trade.