The Trend Trigger Factor Indicator is a technical analysis tool used to identify trends in stock indices and commodities markets.
It is similar to the Relative Strength Index and uses the concept of Buy and Sell Power to calculate the direction of the trend.
Trend Trigger Factor (TTF) Indicator Overview
The Trend Trigger Factor (TTF) Indicator is based on the concept of Buy and Sell Power, and is designed to assist traders in detecting uptrends and downtrends and positioning themselves with the trend.
The TTF formula is based on a 15-period trackback span, with today being considered day 1 and the preceding days numbered accordingly.
The TTF Indicator is similar to the Relative Strength Index (RSI) and is plotted on a scale with values ranging from +100 to -100, with crosses indicating potential trading entries.
Trend Trigger Factor (TTF) Indicator Explanation
The Trend Trigger Factor (TTF) Indicator is a technical analysis tool that is similar to the Relative Strength Index (RSI) and uses a trackback span of a specified number of periods to calculate the direction of the trend using either the bull’s power or bears power indicator.
The TTF Indicator is plotted on a scale with the most noticeable values at +100 and -100 and is interpreted in a similar way to the RSI.
The TTF Indicator’s author recommends a traditional trading method, which is to always be on the long side when the indicator is above +100 (indicating a bull trend) and enter a short position when the indicator is below -100 (indicating a bear trend).
Trend Trigger Factor (TTF) Indicator: Buy Conditions
- The TTF line crosses up above the -100 level.
- The TTF line is above the center line (zero line), indicating a bullish trend.
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Trend Trigger Factor (TTF) Indicator: Sell Conditions
- When the TTF line is below the +100 level, it crosses.
- The TTF line is below the zero line, indicating a downward trend.
