Monday, March 24, 2014

Can TTO predict directional breakout ??


Bollinger Band  squeeze indicates an impending breakout move but the direction remains uncertain. Sometimes there are false breakouts, to be followed by a reversal and a powerful  move in the opposite direction.

With TTO it is possible to anticipate the direction of the breakout move as can be see in the daily chart of YESBANK  below. The hourly trend line moves above the daily trend much before the breakout and continues to hover above it. The trigger line which mimics the extreme short trend, instead of correcting further, begins to move up and thus translating the strength to the hourly trend which now crosses the zero line.