The Double Trend Trap (DTT) tools are a tremendous help and support for each and every trader.
The reason is simple: the DTT tools offer essential assistance when analyzing the trend, measuring a pullback, and knowing when a decent continuation occurs.
Or in other words, it almost takes care of the entire pre-entry process for you!
ADVANTAGES OF DTT
The advantages that the Double Trend Trap (DTT) tools provide are of enormous value. Here are a couple of those reasons:
- When entering before a trade, it is advisable to check for trend, opportunity, filters, and trigger before actually entering (this is called the TOFTEM model). The DTT tools review, analyze and monitor automatically 3 out of those 4 steps! The only one that needs to be checked manually is the filter step. More on this part later on.
- Another benefit is that having automated support is a great value because it offers consistency and clarity at all times. The tool uses the same consistent logic even in the toughest of situations.
- The tools never get tired or emotional. They provide the same level of accuracy day in and day out, year in and year out. A trader can always rely on them, no matter what the circumstances are.
- Traders can create their own rules and strategies as well, but the process certainly takes its time to fully develop into a mature trading approach. The DTT tools help each and every trader save this struggle. This in turn saves time and money.
- Traders save a ton of time when analyzing the charts. The speed at which charts can be analyzed with the DTT tools is unmatched. The DTT tools simplify the process of analysis to such a degree, that in some cases 20-25 currency pairs can be reviewed in a matter of minutes.
- The DTT tools help with the trail stop loss placement. They show exactly where the trail stop loss should be at any point in time.
In the long run the time and money savings combined with the ease and consistency of the tools provides a winner’s edge to the trader.
There are more advantages of the tools, but as promised in point 1, let’s explain the value of the DTT tools in relationship to checklist prior to entry (TOFTEM).
DTT TREND TOOL
All traders need to know whether the market is trending, reversing or ranging.
Therefore, regardless of how you trade, the DTT tools are going to provide vital information regarding the direction of the market.
If you are a range trader, then you can use the DTT trend indicators to know when the market is ranging. A ranging environment means that the DTT trend indicators will be marked as “grey”, which means neutral.
If you are a trend trader, then you can use the DTT trend indicators to know when the market is trending. A trending environment means that the DTT trend indicators will be marked as “green” for uptrend or “red” for downtrend. A trend trader would only look for trades in the same direction as the indicator.
If you are a reversal trader, then you can use the DTT trend indicators to know when the market is trending. A trending environment means that the DTT trend indicators will be marked as “green” for uptrend or “red” for downtrend. A reversal trader would only look for trades in the opposite direction as the indicator.
Getting the direction of the trade correct is of immense importance. Traders want to avoid trading in the wrong direction (compared to their trading plan) at all costs.
The DTT tools are also of great assistance for defining the opportunity and for monitoring the trigger.
For those that are not familiar with the DTT strategy, the opportunity phase is where the strategy looks for a pullback within a trend (for your information: this particular element is valid for the trend traders).
Basically, the DTT tools are able to measure how much pullback is needed before the retracement qualifies as a sufficient pullback. Say that again?
Yes, the DTT tools can actually monitor how much pullback a trader wants to see!
The DTT logic gives a “green light” to that setup only when the pullback meets the specific requirements of not too shallow but also not too deep.
That information is only put on the chart during the next phase, which is the DTT trigger.
The DTT trigger is the confirmation or trigger of the DTT strategy. The trigger is the moment where currency traders become very interested in a trade setup and they are close to entering a trade.
This means the following: there is a high chance that the pullback has been completed and the trend is going to continue in its original direction.
Obviously there is a substantial difference between pushing the button and jumping into a trade that a trader thinks is good OR properly analyzing the market structure and price movement via TOFTEM model and implementing the trading plan accordingly.
The DTT trigger helps with knowing when the timing is correct and when a trader can start hunting for an entry. Or, in other words, the DTT trigger provides a trader the ability to look for entries with the knowledge that almost all of the conditions have been met.
The last part that does need to be checked manually is the presence of filters. If a filter is present then the potential trade is cancelled. If a filter is not present then the potential trade has a green light.
This will provide traders with the winner’s edge in their analysis and trading.
Do you think that the DTT tools will help your trading?
Would you like to try the DTT tools yourself? Have you already tried them and found them to be a help?
Let us know in the comments section!
Thanks for reading and sharing and wish you Happy Trading!
Latest posts by admin (see all)
- How To Plan a Trade From Start to Finish - May 3, 2016
- How To Trade The Eur/Usd Right Now - April 29, 2016
- Eur/Usd Could Move Higher Based off of Support Pin Bar - February 19, 2016
Winner’s Edge Trading, as seen on: