An oscillating technical indicator that attempts to identify trends.
Overview
The Trend Trigger Factor (TTF) was presented by M.H. Pee’s article “Trend Trigger Factor” in the December 2004 issue of Technical Analysis of Stocks and Commodities magazine (TASC). The TTF is a method of detecting up-trends and down-trends using buy power and sell power calculations derived over the previous n-periods.
TTF in the EUR/USD 4H Chart on 3/21/2011:
Source: VT Trader
Interpretation
Typical uses include creating an always-in-the-market system whereby Sell trades are generated when the TTF crosses down through the 100 level and Buy signals are generated when the TTF crosses up through the -100 level as seen in the example above. As with any individual signals, it is not to be reliable by themselves and therefore should be be the sole factor for trading decisions.
