Trapped Trader Range

█ OVERVIEW


Trapped Trader Range (TTR) is a unique trading octave system that helps traders identify potential areas of price or trend reversal before the market reacts. TTR identifies levels where traders may have become "trapped" in their positions, either by selling short at the bottom of a range or buying at the top of a range.

TTR levels are listed from 100% to 0% in 12.5% intervals, with "100%" representing the location of possibly trapped buyers and "0%" representing the location of possibly trapped sellers. The indicator updates dynamically, with the color fills of the levels changing as the indicator detects validation or invalidation of the trapped trader scenario.

Blue color fills are possible areas of support created by trapped short sellers, while red color fills are possible areas of resistance created by trapped buyers. Traders can use TTR in a variety of ways, such as identifying key levels for potential trade entries or exits, as well as using it to confirm/validate other technical analysis tools.



█ CONCEPTS

TTR offers traders the ability to identify potential areas of trapped traders on their chart's timeframe, but it also provides the option to zoom out and view these levels on higher timeframes. This can be beneficial as it allows traders to take a top-down approach to their analysis, which can lead to more informed, safer trading decisions.

When traders focus solely on the timeframe they are entering and exiting trades on, they may miss important market dynamics playing out on higher timeframes. By zooming out and looking at the bigger picture, traders can gain a better understanding of the overall market sentiment, which can provide valuable insight for their trades.

This can be a safer approach as it allows them to avoid getting caught up in the noise of the lower timeframe and wait for a more significant move to develop. By waiting for confirmation from the higher timeframe, traders can increase their probability of success and reduce their risk of entering trades prematurely.

The most commonly used time periods for octave trading systems are 16, 32, and 64. These time periods correspond to the number of bars on the chart and align with the natural "rhythms" of the market, however, it's strongly recommended to test different time periods to find what works best for you.


See complete TTR Product Guide for more info.