The TTM Trend Indicator is a technical analysis tool that uses a combination of moving averages and standard deviations to identify the direction and strength of a trend.
The indicator changes color depending on whether the trend is bullish (green) or bearish (red).
To understand how the TTM Trend Indicator works, it’s essential to understand the moving averages and standard deviations.
A moving average is a calculation of the average price of an asset over a certain period. It is used to smooth out price fluctuations and provide a clearer picture of the trend.
Standard deviation is a statistical measure that indicates the degree of variation in a set of data. It is used to determine the volatility of an asset.
The TTM Trend Indicator uses a combination of two moving averages and one standard deviation to determine the trend of the market. When the market is in an uptrend, the TTM Trend Indicator turns green.
When the market is in a downtrend, the indicator turns red. The length of the moving averages and standard deviation can be adjusted to suit the trader’s preferences.
Buy Signal Generation With TTM Trend Indicator
When using the TTM Trend Indicator, a buy signal is generated when the indicator changes from red to green, indicating that the market has shifted from a downtrend to an uptrend. This buy signal is further confirmed when the price of the asset breaks above the resistance level.
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Sell Signal Generation With TTM Trend Indicator
A sell signal is generated with the TTM Trend Indicator when the indicator changes from green to red, indicating that the market has shifted from an uptrend to a downtrend. This sell signal is further confirmed when the price of the asset breaks below the support level.
Traders can use other technical analysis tools to confirm the sell signal, such as chart patterns, candlestick patterns, and other indicators.