The Revolving True Open (RTO)
When an SSMT forms mid-cycle, the quarter it forms in gets its own true open. Use it exactly like a regular true open — it becomes your new time-based premium/discount reference for that quarter.
What the RTO Is
A Revolving True Open is the opening price of the quarter in which a sequential SMT forms. Normally the true open is the Q2 open. But when an SSMT forms in Q3 or Q4, the opening price of that quarter becomes the RTO — a reactive price level you can use immediately.
How to Use It
-
SSMT forms. Note which quarter it’s in.
-
Mark the opening price of that quarter’s very first candle.
-
Treat it like a regular true open — longs below it, shorts above it.
-
Look for a second-stage confirmation (lower TF SSMT or SMT Fill) below the RTO for highest probability longs.
-
The RTO is also a target — if entering below it, target the RTO as first take-profit.
Why It Works
The SSMT marks the manipulation of that specific quarter. The quarter opening price is where the manipulation needed to start from. Once price runs back to that level, it’s returning to the ‘fair value’ of that quarter’s opening. Entries below the RTO in a bullish setup are at a discount relative to where the quarter started.
- The RTO solves the problem of late entries after SSMT. You missed the first move off the SSMT low — fine. Wait for the RTO retest and enter from there. Same thesis, better entry, smaller stop.
Want this marked on your chart automatically? My Quarterly Theory indicators plot it in real time — free trials on TradingView.