DTF and the RT Concepts

A first look at intra timeframe awareness and how to trade it.

The RT Concepts are a phenomenal tool that gives many quick 1R, 2R, 3R trades/scalps on all days, provided that you wait for a good setup, and understand the concepts through and through. From questions I received from followers, I deduct that many interpret the RT system as simple. In many ways it is, but it is easy to get complacent with them. You have to understand, not every reclaim is a failed breakdown or failed break out.

Let me demonstrate with an example. This is a quick study I received this morning from someone who had just read the RT Concepts instruction, then decided to backtest and casually assess it’s effectiveness. Their question inspired a walk through, and led me to share this with you today, as an appendix to the RT Concepts instruction.

So the question was if the RT Concepts account for stop outs. The following chart was proposed, and before you read on, I recommend that you study the RT Concepts instruction, and then study the below chart to see if you agree with the way it has been drawn up.

If the above is a dip that you would buy, you probably lose a lot of money regularly. Let me break down why there was no reversal entry here.

First of all, as my RT Concepts instruction details: before looking for an RT, it is important that you draw the imbalances correctly. RT entries set up countless times every day, but if you get the imbalances wrong, you’ll not be taking RT entries.

In answer to the above question, here is how that structure actually breaks down.