TT Crossing Indicator Average Directional Index (TT) is an indicator that determines the strength of a trend. Though the TT is commonly used, many forex traders find the -D1 and +D1 crossover difficult to comprehend. The complexity of TT is simplified using the TT Crossing Indicator for MT4.
The TT Crossing Indicator is used to determine the direction and strength of a trend.
Indicator for MT4 signal is generated from the red and green dots as seen in the diagram below.
From the diagram above, the red dots are sell signals. Contrarily, the green dots are buy signals.
The TT Crossing Indicator for MT4 is simple to use – trade can easily be placed using this indicator.
This indicator performs well in all trading conditions, from trending to ranging or sideways forex market.
How to use the TT Crossing Indicator
The TT Crossing Indicator for MT4 can be used solely to spot long and short trade from the chart.
However, it’s best to use this indicator with candlestick patterns and basic technical analysis to avoid numerous false signals.
The diagram below shows how the TT Crossing Indicator was used in conjunction with simple support and resistance levels.
The diagram above is a GBP/USD H4 Chart showing the buy and sell trade strategy.
Sell Signals
On February 25, 2021, the 1.4007, there was a breakout (red arrow) at the support zone (black horizontal line) and the support is now seen as a resistance level.
On March 04, 2021, the new resistance level was retested the second time. A strong pullback was seen at the resistance level.
The TT Crossing Indicator then shows a red dot, indicating that a short position can be taken. This is seen as a sell signal on the chart.
Another sell signal was shown by this indicator when the price tested the resistance level the third time on March 10, 2021. Short position can be taken when the chart formed a bearish engulfing candle with the TT Crossing Indicator showing a red dot.
Finally, on March 18, 2021, the price tested the same strong resistance zone for the fourth time. Another sell position can be taken when the chart formed a spinning top candle with the TT Crossing Indicator showing a sell signal.
Buy Signal
On March 24, 2021, Price tested the strong support zone at 1.3677 (seen as the red horizontal line).
Later on April 12, 2021, the price retested the same support zone the second time.
Long trade can be taken when the chart formed a bullish engulfing candle and the TT Crossing Indicator showed a green dot, indicating a buy signal.
The best time frames for this indicator are the H1, H4 and daily time frames.
Conclusion
The TT Crossing Indicator helps forex traders to easily spot trend directions and possible entry points.
This indicator should be used together with price action and candlestick patterns during trading to avoid many false signals.
For the best result, this indicator should be used with a simple support and resistance strategy to find the best entry and exit point.
TT Crossing Indicator Video
