Trend Trigger Factor: Range Comparison with T3 Smoothing

Summary

The Trend Trigger Factor (TTF), attributed to M. H. Pee in 2004, compares price ranges across recent and older lookback windows. It calculates buy power from the recent high and older low, and sell power from the older high and recent low. Their normalized difference produces an oscillator intended to indicate directional trends.

The described indicator treats readings above a configurable positive threshold as an uptrend signal and readings below a negative threshold as a downtrend signal. This implementation smooths TTF with a Wilson T3 average and plots the indicator alongside threshold and zero reference levels. The document provides a formula and implementation details, but no performance tests or evidence that the signals predict returns. Thresholds and smoothing settings are adjustable, and the author notes that another smoothing method could be used; results may therefore depend on parameter choices and market conditions.

Key ideas

• TTF compares recent and older high-low ranges to estimate directional pressure.
• It normalizes the difference between buy power and sell power by their average.
• The indicator signals direction when its smoothed value crosses configurable positive or negative thresholds.
• This version applies Wilson T3 smoothing to the oscillator.
• The document gives no backtest or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.