T1 is an intra-day trend indicator. This indicator has been designed to work on the 1 minute all sessions timeframe and has been tested against the ES.
The T1 indicator shows the general trend and major turning points in the market. It is a swing indicator and used to get on board with longer term trades. It is best used in conjunction with DeltaT to time the entries. The T1 indicator uses values of 8, 10, and 12 to mark areas of weak, medium, and strong sell signals and the opposite (with minus (negative) signs) to mark areas to buy. Cyan marks weak buy/sell areas, yellow is used for medium sell, red for strong sell, green for medium buy and lime for strong buy. In back testing the most extreme value seen for T1 was 30 and -30 respectfully. With this in mind you should understand that T1 can remain in a strong buy/sell zone for a long period of time.
The colors used by the indicator as well as the cut-off levels can be changed from the default by the user. As you will see in the charts on this page I have changed the default color on DeltaT such that it's green (instead of lime) above the zero line and orange (instead of red) below the zero line in order to make the distinction clearer.
This is what the 3 stages of a T1 buy and sell signal look like:
The following are basic strategies that we use for trading the T1 indicator.
We've removed all other indicators in the charts below and condensed the charts by making the bars narrower so that you can see more on the day in one picture. The charts are still 1 minute ES charts.
In the example below we have T1 signal a sell just before midday. The ES
drops 11.50 points from one extreme to the other where T1 is signaling a medium
When does T1 fail?
At around 10:30 EST, T1 signaled short when the ES was between 1104 and
1106. The price dropped around 10 to 12 points and just before 15:00 EST, T1
signaled long. The price continued falling another 8 to 10 points into the
close at 16:15 where T1 had a value of -23. As stated above, in back testing we
have seen T1 take on extreme values of -30 to 30 so this can be expected.
Other indicators in this Pack/Series: