Ten (or more) TTO Patterns that Cook (with Probability Stacking)! (Members Only)

This post covers 10  (and more) STTO (SmartTrappedTraderOscillator) and STTOA  (SmartTrappedTraderOscillatorAdvanced) patterns we use to get probability stacking on our trades to achieve historically based trade success rates of 90+%.  We use the TTO ans TTOA in the room and it is available through our sister site IndicatorSmart.com along with the SmartBreakPoints Indicator (for the TTO).

Why is this post for members only?  This article is well worth a monthly subscription many times over.  So if all you did was sign up and read this post, you would receive full value for becoming a member of the trading room, but the Oil Trading Room is much much more than this a hundred times over.  If you are serious about your trading,  Join us, learn, advance your skills and knowledge and come into alignment with your higher trading powers!

There are 10 (or more)  basic patterns we have learned to use on the TTO and, with this article being updated from the original (3/24/2021) there are now many more and especailly with the new TTO Advanced (see bleo for more on that).

First off are the 3D Complex.  Here you get first 3 dots ascending or descending on the TTO going with.  If this is followed bt a line break on the Smart Break Points (SBP) on the TTO panel, you will have what we call a 3 dot break.  If the bar hooks back in the original direction following we call that 3DV.  If it breaks the edge again and hooks, we call that 3DVE.  So it goes in order 1, 2, 3, 4.  as 3D, 3DB, 3DV, and 3DVE respectively (click the image to enlarge).  These patterns are generically 75% to continue and will probability stack with other patterns such as the T2.  This kind of thing is telling you there is strong structure and order flow going with.  With a T2, this patterning should spec out to better than 90% with Bayes (see the Bayes table in the members area), especially where you do not have CD>AB legs or encompassing patterns and are with the SmartPriceBand (also adding).

Next we have the TTOP or TTO Pump.  This is only used with the T2 pattern and is where the TTO is out of bounds (OOB) counter to the direction of the trade.  OOB is where you have the TTO out of the 80-20 lines on the  indicator.  Another form of the TTOP is where you broke two prior SBP lines on the TTO (see below).  This pattern is generically 84% with a T2 on the Smart Momentum and the BGCC (backgroud color change).

Next is the Single Bar Encompassing Pattern (SBEP).  This occurs where the TTO encomasses two lines and is the same kind of structure as an encompassing pattern in price.  This pattern shows strong order flow in the direction of the break. It is preferred with trend and in the counter trend it is often preferred that you not be against it. This pattern may be considered to be about 75% generic and adds with other patterns, especially where it is with trend and not on consolidative structure (see note at the end of this article).

Next is the TTO Lead Out (TTOLO) and the TTO Box (TTOB).  The TTO Lead out occurs where the TTO is going with price and does a line break in the direction of the trade.  A TTOBox is the same, but requires a double bottom or double top in price or a 5 tick trap (structure broken by less than one complete continuation bar).  These patterns are generically in the 84% are on their own and add with other patterns.

Mid Line Hook (MLH)  This pattern is adding and is showing a continuation pattern. It occurs where the TTO has hooked the 50% line on the TTO or has hooked above it for longs or below it for shorts.  It can often happen with 3D patterns and where the Smom and SPB colors match (which is often in a relatively high momentum situation).

Next is the TTO Pulling.  If the TTO breaks a line in a direction and that is not rebroken going the other way (in other words, it stays inside), then the TTO is said to be pulling.  This is often similar to what happens in the 3D structure; break and hook inside the prior TTO lines without violating.  This is a sign of order flow momentum.

Next is the Double Line Break (DLB).  If the TTO breaks two TTO SBP lines in one bar, it is suggesting continuation in the direction of the break.  Beware of being against this pattern.

Another TTO pattern that can be useful is the COD pattern. The COD pattern can also be called "Cross Over Divergence"  and occurs where the TTO from reversal bar to reversal bar of the same color on uninterrupted structure is higher to buy and lower to sell.  We do not have a specific stat for this but it is known to be adding as the forward strength of the TTO on these cases carries some momentum.  Any Lead out by definition is a COD.    Technically,  the COD looks at the TTO relative to a prior bar.  You could also look at TTO strength in absolute terms based on its magnitude only and for specific price action and potential stacking situations.

The R0Ob pattern.  This pattern occurs where you get a reversal bar on the TTO that is above the 80 line or below  the  20 line. This is often indicative of a strong market condition as it is difficult for the market to do this.

The 2DB pattern.  On this pattern, what you will see is the TTO and price going together and then on a Reversal bar you will see the TTO break a line counter to the original move.  This is the 2DB pattern and it is a continuation pattern.  Often this will also happen with a 3DV pattern. In this case, you likely have some probability stacking in the direction of the pattern.

The 3D2 pattern.  With this pattern you will see both the Smart Momentum in a 3 higher or lower dot condition on the TTO and a pending or 3 lower or higher dot condition on the SmartMomentum.  This may also occur with a 3DV or 3DVE pattern as well.  Sometimes the Smart Momentum will just be sliding along with the direction of the TTO 3D complex patterns. As long as these conditions are intact and/or pending as described on the SMOM, you have a 3D2 pattern.

The new TrapperTraderOscillatorAdvanced tool has several new features that enable you to see more that is happening inside the bars. One of these features is the Pressure Bars (PB).  PBs can be beneficial in any number of ways and I will cover a few of them here.  Be sure to ask in the trading room for clarification on any patterns if needed.

The PB Reference pattern.  With this pattern, you be comparing the PB to a prior one in terms of its strength going with.  For the PB condition, you will want the  price structure to be intact, meaning a higher high or a lower low on RB (Reversal Bar).  When you get this AND the PB is stronger than the first, it is adding to the movement continuing in the same direction as the pattern.

The TD pattern.  On this pattern, you will see the TTO close on a reversal bar being encompassed by the Pressure Bar (PB) in the direction of the price patterning.  It is preferred to use this pattern with the trend and we recommend trading with the trend in most cases; especially  in the beginning.  It is easier to parse the market out by price action and trend using market structure as taught in the room and/or with the Smart Price Bands.  So, it is recommended that you would master this first before taiking on counter trend. In other words, it is best to learn to be single minded before being double minded and mastering them in that order, or, just trading with the trend.

The 3PB pattern.  On this pattern you will pay attention to the PB going in a sequence of higher highs or lows.   This adds to probabilities for continuation in that direction.  Use Reversal bars for this reference.  There is another special case where you actually get the PBs fading befor the RB AND it is also 3PB on the RB. In this case it is adding even more.  This variation is called 2PB3.  You can also look at PBs going with price (sequences of CBs) as a general trend continuation pattern. This is particularly true in the CL market and less so in others. I think this is true becaseu CL can have protracted trend moves with stong order flow inside sequences of bars.  Always be careful of these patterns after  going a good number of continuation bars.  See the Probability inversion tabel in your members area resources to see general probabilities for getting a reversal.  In other words, it is better in general to do these patterns, especailly in sequences of CBs earlier on in the sequence.

If you have the TTOAdvanced, there are also other patterns available using the  Chart Bars ( After you finish this article, you can learn more about the TTOA by clicking this sentence. ) With the Chart Bars, you can actually see the High, Low and Close of the TTO.  One pattern with this is the Slingshot pattern.  With this, you will see the TTO touching the 50 line with the immediate trend. Often these patterns are what we call the E2 pattern where a tail on a continuation bar has encompassed the brick of a prior bar. For the Slingshot pattern, this E2 condition is not required. With practice and experience you can, with the TTOA, begin moving towards being able to fire trades at almost any place on a chart.  This is advanced usage so is not encouraged for beginners.  You can also see Slingshot patterns on the regular TTO if you are monitoring the touches of the TTO to the midline but it is a lot to keep track of, so it is good to have a tool that can maintain that for you.  This pattern of course is one we learned above called the Midline Hook (MLH) with the difference being you can monitor it live on an intrabar basis.  This kind of trading and patterning can be fun as it is fast and prices often move away from these areas agressively.  Ask in the room if you'd like clarification on any pattern in this article.

The TD3 pattern is often used as an exhaustion pattern.  You will see the PBs exceeding the TTO for 3 or more bars. When you see a reversal bar under this circumstance, you will often get a continuation bar going with the first RB.  You can use this for money management. i.e. where you do not want to be holding.  In fact, any of the patterns discussed in this article can be used for meney management or for entries.  Anothe place this can often happen is where the TTO has gone coast to coast (C2C) in one ununterrupted run.  When you get this the probability for continuation in the direction of the reversal if fairly high. So you generally do not want to be against it.  This pattern is called TTOC2C.

The basis of our method is that various patterns with good probabilities that each stand on their own, when occuring at the same time as other patterns, lead to probability stacking.  There are many benefits to this kind of system design and in our experience, this approch is vastly superior to other methods of trading system design.

I have covered a large number of patterns in this article. Some may be more for your style and likes than others. Some may lead you to learning to see even other things.   It is recommended not to take on a lot of patterns all at once. Keep it simple and let your arsenal of trading tools and patterns grow in time. One pattern at a time with mastery at each step.

Look over the charts in this article.  Not all of the patterns are marked.  Can you find more?  What happens where you find them?  What happens where you find them and they stacked and/or are in clean structure?  Such exploration is stronly encouraged, but always be careful to test what you are trading and be extremely clear on what you are trading and be careful also not to get it mixed up in your mind as you add knowledge to your trading arsenal 🙂

Beware of any TTO patterns that are occurring on multiple back to back reversal bars (aka rail road ties or rail road tracks) or in consolidative non cycling structures where they will often be less valid).  Trading with the trend and with the most likely direction for range expansion is often your friend 🙂  Any of these patterns may be used for entry or for trade management.

If you need clarification, please ask in the room for best benefit.

Recap of TTO Patterns:

3D complex (3 patterns plus 3DB)  75% generic

SBEP (Adding)

TTOP (with T2-on Smom- T2 is generically 80%, with TTOP it becomes 84%.

TTO Pulling (Adding and also good if persisting with trend)

TTOBox and TTOLO  (about 84% generic - trend /SPB can be adding).

MLH (adding- and especailly where SPB and SMOM are  the same color in the expected direction of range expansion.

DLB (adding or money management).

COD (adding)

CODX

(11 patterns total plus 3DB)

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *