Indicators (NinjaTrader 8)

Over years of trading on a short time frame, I have developed a set of indicators which help me make my trading decisions, I would put them in three categories, Market Structure, Market Micro-structure and Market Internals, each of these indicators have a specific role to play in my decision making process, but alas none belong to the “Holy Grail” category. All indicators here, are designed keeping in mind the needs of a discretionary trader with a quantitative bent. Hope you find them as useful as I do.

 

Range by Time

Trading is all about understanding the Market Structure and how it develops over the day. Whether you are a momentum trader or a mean reversion trader, you cannot underestimate the role of Range statistics. This indicator is designed to help you with just that and a bit more.

 

Cumulative Relative Volume

Volume of an instrument on a given day ,esp. in indices tells us who is in the market. Is it the locals or the institutions driving the moves. One way to determine that is to look at the average volumes over a 20 day look back, If the volumes are higher than the mean, then you know what to expect. Cumulative Relative volume is a simple way to gauge that. You may find more information about this in Dr. Steenbarger’s blog.

 

DaVinci Trade Rate

The purpose of this indicator is to track trade speed on a tick chart. For a more detailed explanation refer this page - you can also read up about how I use it in my trading here. Do note that this indicator works only on tick carts.


 
RSI Candlesticks Main.jpg

RSI Candlesticks

Sometimes it’s just a different perspective that you need, and viola life changes forever. That was the idea behind creating RSI with candlestick visualization. If you are a user of RSI in your trading, this visualization can be of great help as you would be able to clearly see trend nuances which are sometimes difficult to see in a line only rendition of RSI.

 
 
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Average Bid-Ask Spread

They say sometimes “Spreads tell a story”, and sometimes it foretells. In liquid instruments especially futures, plotting the average spread gives us a sense of the activity and nature of auction in the limit order book. Its a good proxy if you don’t have access to order book info.

 
 

Advanced Relative Strength - Line Chart

If your trading involves looking at correlations across indices or tracking multiple scrips / stocks to get a sense of how internals are supporting (or not supporting) a move, or even if you just want to track a bunch of instruments on one pane. This is your tool.

 
 

WIP

Sometimes it’s just a different perspective that you need, and viola life changes forever. That was the idea behind creating RSI with candlestick visualization. If you are a user of RSI in your trading, this visualization can be of great help as you would be able to clearly see trend nuances which are sometimes difficult to see in a line only rendition of RSI.

 
 

WIP

and viola life changes forever. That was the idea behind creating RSI with candlestick visualization. If you are a user of RSI in your trading, this visualization can be of great help as you would be able to clearly see trend nuances which are sometimes difficult to see in a line only rendition of RSI.