Time and Volatility (ItG)
Time and Volatility (ItG)
Volatility: Into
the Grid
NINE
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Contents
3. DTT Framework 5
4. DTT Models 19
5. Root Candles 25
W elcome to Time and Volatility: Into the Grid! If you've ever strug-
gled with trading, felt impatient, or made decisions based on
guesswork, you're not alone. Trading can be challenging—but it doesn't
have to be. This guide introduces Digital Time Theory (DTT), a pow-
erful framework that simplixes trading by using time, data, and volatility
to make smarter decisions.
Imagine knowing exactly when to e’pect big moves, where price might
reverse, and why the market behaves the way it does—all based on real data,
not gut feelings. ThatDs what ?TT does for you. The best part]
Low the ?TT framework works and how it improves your trad-
ing.
One of the biggest challenges traders face is impatience. DTT helps you
wait for the right opportunities by showing you:
The best times to expect price movements.
When you know what to expect, you're less likely to make impulsive
decisions. You wait for high-probability setups, which means fewer trades
4 NINE
DTT Framework
The FTT wrame—ork is made Dp ou several key elements that —ork togethL
er to provide a clear roadmap uor tradingI ’etNs break do—n each element
in detailI
A EfE6
1. Root Candles
“ root candle is a speci”c candle that acts as the starting point uor yoDr
analysisI ft helps yoD identiuy important price levels and potential movesI
Think ou it as the 1anchor0 uor yoDr uractal trading sessionI
Examples of Root Candles:
:34CM 9andle ou FTT 2odel ::I
uor sellingPI
These are the highest and lo—est points urom a previoDs FTT modelI
They act as key reuerence points uor potential breakoDts, reversals, or trend
continDationsI
Why They Matter:
Liquidity Zones: Srice outen targets these levels to trigger stop
ordersI
Examples:
DTT Weekly Model High/Low: The highest and lo—est points
urom the last —eekly modelI
The Toodegrees fndicator marks these highs and lo—s on yoDr chart, sho—L
ing yoD ezactly —here to —atch uor potential movesI
3. Equilibrium (Midpoint)
:3 EfE6
What is Equilibrium?
4. Intervals
fntervals are speci”c time periods —here price tends to behave in preL
dictable —aysI 6zamples inclDde4
:343W ou the FTT KDdas 2odel
Tf26 “EF HG’“Tf’fT'4 fETG TR6 7qfF ::
5. Volatility Expectations
Tf26 “EF HG’“Tf’fT'4 fETG TR6 7qfF :C
What is Volatility?
Holatility measDres ho— mDch price moves over a given periodI /ome marL
kets are more volatile than others, and volatility changes throDghoDt the
dayI
How to Use Volatility:
Set Targets: fn highLvolatility periods, set larger pro”t targetsI fn
lo—Lvolatility periods, aim uor smaller targetsI
The indicator measDres cDrrent volatility and sho—s yoD ezpected ranges,
so yoD kno— ho— uar price is likely to moveI
What is AMRP?
:M EfE6
“verage 2odel qange Srobability sho—s the average range price tends to
move based on historical lookback period ou dataI ft helps yoD4
Set Realistic Targets: no— ho— uar price is likely to goI
The Toodegrees fndicator calcDlates “2qS uor yoD and marks these levels
on yoDr chartI
DTT Models
15 SEC, Intraday, Weekly,
Yearly
DTT Models
Application:
lokh
Application:
Application:
Application:
Draws Highs and Lows: Giguliguts previo,s uigus and loks for
eacu modelh
rangeh
itu tue indicatorI yo, donSt uave to man,ally drak or calc,late anyN
tuingh Tue models are laid o,t for yo,I ready to ,seh
Eok tuat yo, ,nderstand tue di.erent DTT modelsI letSs dive deeper
into root candles and uok tuey g,ide yo,r trading decisionsh
Chapter Five
Root Candles
Liquidity draws.
mhe keautR of voot candles is that theR can ke identiDed on any time-
frame for every model: .awinb the. gevsatile fov day traders, swing
61 ErE2
mhese co.ponents fov. the basis for your analysisI xov eMa.pleN
rf pvice tvades above the root candle’s high: it indicates kullish
.o.entu.I
mrV2 AET OLYAmrYrmHN rEmL mG2 7,rT 68
Bullish Bias:
rf pvice staRs akoge the voot candle3s hibh: the .avwet is liwelR
to tvend upyavdI
Bearish Bias:
rf pvice staRs keloy the voot candle3s loy: the .avwet is liwelR
to tvend doynyavdI
Example:
At the New York Open: if the Dvst ’G candle closes kullish: pvice
can potentiallR continue hibhevI
rf the pvice kveaws akoge the voot candle3s hibh fov the intvadaR
.odels and staRs theve: eMpect an upyavd tvend and it yill utiliPe
the voots as a suppovtI
2. Liquidity Draws
rf pvice kveaws the voot candle3s hibh: it .aR tavbet lizuiditR akoge
vecent hibhsI
46 ErE2
mhe high, low, and equilibrium of the voot candle act as natuval suppovt
and vesistance PonesI
Support:
rf pvice falls to the voot candle3s loy and holds: it .aR act as a
suppovt legel fov a vegevsalI
mrV2 AET OLYAmrYrmHN rEmL mG2 7,rT 44
Resistance:
rf pvice vises to the voot candle3s hibh and stalls: it .aR act as
vesistanceI
45 ErE2
Discount Zone:
Premium Zone:
Bearish Divergence:
—ait fov a stvonb .oge akoge ov keloy the stacwed voot canq
dlesI
Eoy that Rou undevstand the poyev of voot candles: let3s eMplove previous
model highs and lows and hoy theR help Rou identifR kveawouts: vegevq
sals: and tvend continuationsI
Chapter Six
Previous Model
Highs and Lows
P revious model highs and lows are the highest and lowest points es-
tablished during a prior trading period or DTT model. These levels
act as key reference points for understanding future price behavior. They
represent areas where the market has shown signi,cant interest1 making
them likely to inPuence price action again.
q. Liquidity Pools:
M. Psychological Levels:
The highest and lowest points from the previous yearly DTT
model.
The highest and lowest points from the previous weekly DTT
model
2. Breakout Trades
Bullish Breakout:
Bearish Breakout:
3. Trend Continuations
’ombining equilibrium with previous highs and lows adds another layer
of con,rmationG
Trend Continuation:
Reversals:
Eow that you understand how to use previous model highs and lows1 let s
dive into intervals and volatility and see how they help you anticipate big
moves.
Chapter Seven
Intervals and
Volatility
I ntervals are specimc tioe peridws in the market where price behavior
tends to be more predictable. These intervals act as finwdfs d- dpu
pdrtynitD where volatility, liquidity, and price movements align to create
entries or exits. Understanding intervals helps you time your trades more
efectively and avoid periods oE market stagnation. 1ach model has intervals
inside oE it to determine these key characteristics.
:. 1dwel ::0
6. gi6 gen0
4. 4Ddtd0
:. brewictaVle RdlatilitD0
6. Eioin6 Erawes0
4. kisH 1ana6eoent0
5. Eioe Tistdrtidn0
M5 DID1
EDpes d- RdlatilitD
Ci6h RdlatilitD0
:. Lharacteristics0
Sastjmoving markets.
TIA1 NDV OLYNTIYITH0 IDTL TG1 R2IV MM
Udf RdlatilitD0
M8 DID1
Lharacteristics0
:. (mall price ranges.
gest Btrate6ies0
Aean reversion trades )buying near support, selling near resistanceW.
RdlatilitD BpiHes0
:. Layses0
6. gest Btrate6ies0
TIA1 NDV OLYNTIYITH0 IDTL TG1 R2IV MB
’ait Eor the initial spike to settle, then trade the retracement
or continuation.
RdlatilitD
Dow that you understand how to use intervals and volatility, let s explore
–1kb )–vera6e 1dwel kan6e brdVaVilitD to help you set realistic
pro9t targets and manage risk.
Chapter Eight
AMRP (Average
Model Range
Probability)
What is AMRP?
1. wistorical Analysism
AMRP is calculated by analyzing the average price range for a
speci2c model or interval over a substantial historical dataset. The
more data you have, the more reliable the AMRP becomes.
S. Bynajic Adukstjentsm
-ince market conditions evolve, AMRP is not a static mea3
sure. Regularly updating the data ensures AMRP reFects current
volatility conditions.
x. Probability-Brivenm
AMRP is based on the li1elihood of price reaching certain dis3
tances. Qor e(ample, if the AMRP for Model 11 on Nq )Nasda0:
is 20U points, this means that historically, price has moved 1S5
points within the session a high percentage of the time on average.
4. Pattern Recognitionm
AMRP helps you identify recurring patterns in market move3
ment, providing a statistical edge that can be leveraged consis3
tently.
Vxpected Tolatilitym
If the AMRP for a session is high )e.g., 1V5 points:, e(pect much
larger price swings. This is important for risk management.
range3bound market.
x. Adukst ftrategiesm
4. Ris1 Managejentm
Planm Model 111 has had a larger AMR %Average Model RangeC
which implies volatility will likely be higher during this time pe3
riod and OTT model. The AMR was 16.1W4 in comparison to
the other models which are far below that metric. The result can
be found below.
U5 NINE
hile AMRP provides a reliable average range, sometimes price can move
beyond the expected range due toD
1. qeDs Vventsm
S. ’ncreased Tolatilitym
x. Yi8kidity Rknsm
Vxajplem
AMRP for Model 111 on Nq is 20U points.
Root Eandlesm
[se root candles to identify entry points and combine them with
AMRP targets.
’ntervalsm
Match AMRP with speci2c trading intervals to anticipate when
price is likely to hit the target.
1. Aktojatic Ealcklationsm
S. Tiskal .argetsm
learly marked AMRP levels on your chart help you set tar3
gets and stops ejortlessly.
x. Iorecasting Tolatilitym
4. Bynajic Cpdatesm
Now that you understand how to use AMRP to set targets and manage
risk, let’s e(plore how to combine all these elements with Iractal Models
and Mklti-.ijeFraje ’ntegration for a complete trading approach.
Chapter Nine
F ractal models are price patterns that repeat across dimerent ti-ef
.ra-esT lhe concept o. .ractags in tradink -eans that the -arbet
vehayes si-igargw uhether wo’,re goobink at a yearly chart1 a weekly chart1
or a 15-minute chartT lhis repetition aggous wo’ to appgw the sa-e princif
pges and stratekies on -’gtipge geyegs1 -abink wo’r tradink -ore consistent
and adaptavgeT
NT Universal Application:
8D IEI7
WT Enhanced ConPrmation:
NT Yonb-ferm fimeLrames:
WT Medium-ferm fimeLrames:
HT Ihort-ferm fimeLrames:
lER7 MI— OLYMlEYEl:G EIlL lx7 9PE— 8q
Rarb the previous weekly hibhsqlows1 daily hibhqlows and anw sikni.f
icant lizuidity 3onesT
lER7 MI— OLYMlEYEl:G EIlL lx7 9PE— DN
DW IEI7
lhis is the essence o. co-vink voth intradaw and ueebgw -odegs tof
ketherT lhis can ve done uith root candge to root candges or MRP2 uith
MRP2T
lER7 MI— OLYMlEYEl:G EIlL lx7 9PE— DH
Bhecb the AMgx on voth the gouer and hikher ti-e.ra-e -odegs to
ens’re wo’r tarket is reagistic and agikns uith yogatigitw e4pectationsT
ERample:
Itop-Yoss: 2gace stops F’st vegou the ueebgw root candge,s gouT
lER7 MI— OLYMlEYEl:G EIlL lx7 9PE— DC
Step-by-Step DTT
Trading Plan
Economic Calendar:
News Sources:
Intraday Levels:
Liquidity Zones:
Areas where price might seex stops Ne.g., 8SV N8Dual VowsW,
8SG N8Dual highsW.
Volatility Forecast:
Trade Scenarios:
Risk Parameters:
2. Trade Execution
root candle.
AMRP Alignment:
8nsure -our target aligns with the A)(C range for the sesk
sion.
Check Volatility:
?oes the entr- align with the weexl-, dail-, and session bias/
5. Liquidity Sweep:
. Risk-to-Reward Ratio:
10 FOF8
Long Entry: :hen price breaxs above the root candle3s high
or retraces to a discount Rone.
Short Entry: :hen price breaxs below the root candle3s low
or retraces to a premium Rone.
0. Set Stop-Loss:
Clace -our stopkloss below the root candle low for long trades
or above the root candle high for short trades.
Mistakes:
Wins:
Set Goals:
Identify Patterns:
Weekly Recap:
Frequently Asked
Questions (FAQs)
Yes! DTT provides clear rules and guidelines, making it accessible for be-
ginners. The structured nature helps new traders avoid common mistakes.
6oot Candles
book.
Root candles help establish the initial market bias and identify key support,
resistance, and equilibrium levels.
Yes! Root candles are fractal, meaning they work on intradayx wee,lyx
and even yearly timeframes.
AMRP helps set realistic pro2t targets and stop-loss levels by providing
data-driven expectations for price movement.
9' NINE
Yes. News events, volatility spikes, and liquidity runs can cause price to
move beyond the expected AMRP range.
Intervals are speci2c time periods where price tends to show predictable
behavior, such as ’8:UU of Model ’’.
TIME AND VOLATILITY: INTO THE GRID 99
Intervals help you time your trades by identifying periods of high or low
volatility.
Time distortion occurs when price doesnzt move during a typically volatile
interval, suggesting a delayed move may happen later.
These are the highest and lowest points from a previous DTT model (e.g.,
weekly high/low or intraday high/low).
Wse previous highs and lows as brea,out levels or li%uidity Lones for
potential reversals.
’88 NINE
6is, Panagement
Risk no more than 1V2: of your account on any single trade to protect
your capital.
Wse levels like the root candle/s lowFhigh or a percentage of AMRP to set
logical stops.
Aim for a minimum of 1B2 (risk 5’ to make 50) to ensure pro2tability over
time.
TIME AND VOLATILITY: INTO THE GRID ’8’
Reduce position siFe, use wider stops, and consider trailing stops to lock in
pro2ts.
Trading -sychology
Trust your analysis and AMRP levels. ait for trades that align with your
plan instead of chasing moves.
ollow your preVmar,et routine, trust the data, and focus on executing
high-probability setups.
Toodegrees Indicator
Yes! You can adjust settings to 2t your trading style and preferred time-
frames.
The table shows expected price ranges for di$erent sessions, helping you
forecast volatility and set targets.
Check higher timeframes for con2rmation and avoid trading when signals
are unclear.
-ractical Mpplication
ith consistent practice, most traders can grasp the basics of DTT within a
few wee,s and become pro2cient within a few months. There have been
many cases with that being the result.
Wse DTT for timing and volatility analysis, and combine it with other
entry/exit techniques like candlestick patterns or indicators.
Visit dtt-trading.com to join the Discord group and connect with other
traders.
frames.
S. Calculates AMRP:
:elps you si4e positions and set stops based on your risk
tolerance.
0our ourney does not end here—it evolves. eep reHning, keep learn-
ing, and keep engaging. Markets will continue to present new conditions
and challenges, and the DTT framework is designed to grow with you,
helping you respond eqectively as you develop your skill and understand-
ing.
Chapter Thirteen
DTT Trading
Community
Y our journey with the DTT framework is just beginning. As you con-
tinue to redne your traling with the mole,sM integrate ARPp lataM
anl imvroWe your unlerstanling of market lynamicsM you’ll nde vgvd
ravtiva gtluv cd woddvwicdr hcis oisvaJ who share your lelication to
growth anl alavtation.
YtaicwcWticodP
Vy sharing your versvectiWesM you he,v others liscoWer the DTT frame-
workxs Wersati,ity anl votentia,. En loing soM you a,so bui,l your versona,
networkM Daotevd youa udevaJitdecdrM anl gain recognition within a
suvvortiWe traling community.
[Discord link can be found in the link above at the bottom of the webpage]
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