Linear Regression Channel indicator Pro version for NinjaTrader 8

In statistics, linear regression is a linear approach for modelling the relationship between a scalar dependent variable y and one or more explanatory variables denoted X. The case of one explanatory variable is called simple linear regression. Wikipedia

Linear Regression Channel (LRC) is a very useful tool in trend analysis, especially for long term trend.

This Linear Regression Channel Pro version (LRC Pro) indicator has the following features:

  • Adjust the number of bars (Period input) used in the calculation of Linear Regression Channel.
  • Adjust the width of three channels with different values.
  • Adjust the number of bars to extend to the right side, 0 means no extension.

 

 

It works on the following bar types:

If you used Linear Regression Channel indicator before, you must know that the trendlines are not fixed. That trend is determined by calculating a Linear Regression Trendline using the least squares method.

 

With different ‘Period’ input value, the Linear Regression Trendlines vary greatly, let see an example of how LRC changes over time.

 

 

The chart below is taken from 1/26 with ‘Period’ =275, the Close price is above the 3rd upper trendline.

 

 

The chart below is taken from 2/5 with ‘Period’ =150, the Close price on 1/26 is still above the 3rd upper trendline, but the three Highs before 1/26 are within the trendline now.

The Low on 2/5 is below the 3rd lower trendline.

 

The chart below is taken from 2/5 with ‘Period’ =275, the Close price on 1/26 is still above the 3rd upper trendline, The Low on 2/5 is above the 3rd lower trendline.

The images below are random screenshots.

You can also use more than one instance with different inputs.

Advertisements

Auto ZigZag Fibonacci extension indicator Ninjatrader NT8

Fibonacci retracement is a method of technical analysis for determining support and resistance levels. They are named after their use of the Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.

This custom Ninjatrader indicator will plot Fibonacci extension lines automatically from previous Zigzag High or Low. It works on any timeframe and chart type that supports ZigZag, such as Renko, Heiken Ashi, Range and Tick.

It uses the built-in version of Zigzag from NT8, but instead of plotting Zigzag on chart, it draws the Fibonacci extension lines.

It has all the inputs of Zigzag and two additional inputs for Fibonacci extension, if you checked “Show Extra lines”, it will plot the Fibonacci retracement of 0.236, 0.382 and 0.618 above and below the 0% and 100%.

 

If “Use Recent ZigZag” is enabled, the indicator will use the most recent stable ZigZag, otherwise it will use the previous one. Please check the images below for a better understanding.

The indicator may not work properly if there was not enough bars on the chart.

In general, 800 bars is good, but it also depends on the ZigZag Deviation value you set.

The bigger the Deviation value is the more bars you need to load.

You can change “bars to load” by following the pic below.


The fastest way to access your fav inputs is saving it as Templates.

The price percentage change of Stock, Forex and Futures vary widely in the same timeframe.

In most case, Stocks have higher percentage change than Forex and Futures.

Deviation percent value 0.01-0.065 is good for Forex in 1 to 5 minutes chart, but it may not work well for stocks or futures.

Please check the screenshots below to get some ideas of how to properly set the inputs.

Example of Heiken Ashi:

Example of Renko:

Example of Tick.

Example of  Range:

Example of minutes:

Flow of fund (FOF) indicator for NinjaTrader 8 NT8

This is the NT8 version of Flow of fund (FOF) indicator

Get it from: http://www.patternsmart.com/cart/index.php?route=product/product&product_id=364
Flow of fund (FOF) simply refers to the direction of money in the market. FOF indicator shows how the flow of funds impacts market price.

The idea of this indicator is very intuitive, prices raise when cash flowing into the market and drop when cash flowing out of market.

The calculation of FOF involves three basic but the most important elements of the financial market: TIME, PRICE and VOLUME.

Flow of fund indicator consists of two parts:

  1. HISTOGRAM shows the total amount of money get in or out of the market within 1 bar.
      • If selling pressure is stronger than buying pressure, it will be a red bar,
      • otherwise, it will be a green bar.
    • Two Flow of fund trend lines, indicating the short and long term movement of money flow.
      • Fast trend line uses a shorter period of time.
      • Slow trend line uses a longer period of time.
      • The length of period of both trend line is adjustable by user.

    The orange line in the images is slow FOF, the blue line is fast FOF.

    It works within all time period (Tick, Minutes, Daily, Weekly, Monthly) with VOLUME.

     

     

     

     

     

     

     

    Related articles:

    Prices always follow the Flow of fund, how to use the flow of fund indicator.

    The role of flow of funds indicator in day trading.

    macd predictor indicator for cTrader cAlgo

    MACD predictor is a trending indicator that give you not only what direction a forex pair is moving but also how volatile the price is. When the Forex market starts giving new max or minimum level values, the Dinapoli macd predictor follows the price trend direction and pullsup the level of quit from the currency market . Stops should be applied where they are for a purpose, and in that case, should not be changed.

    The whole idea behind a practical trading plan is to keep it as simple as possible.

    There are two main advantages to its use.

    1. You are able to determine, one period ahead of time, what price will cause the MACD to turn from a buy to a sell or visa versa. It is a cousin to the Oscillator predictor. If you take a position you know right then and there, the exact price, the current and next (future) bar will need to achieve for the MACD to cross. You can also literally see the distance the market has to go, before your current position is either helped or hindered by the force of the next MACD cross. You can do this in all time frames, as the predictor updates in real time.

    2. You are able to determine the “Dynamic Pressure” on the market by clearly observing price action with the MACD Predictor history, superimposed directly on the bar chart. Dynamic pressure refers to how the market reacts to buy and sell signals. If you get a 30 minute sell on the MACD and the market goes flat for example, you know right then and there that the next buy signal is apt to be a big winner! This was something I would regularly do with the standard DiNapoli MACD but now it is so much easier to see!

     

     

     

     

     

     

    ADX Divergence indicator for Thinkorswim TOS

    This product is part of the:ADX Divergence Indicator all-in-one package for Thinkorswim

    The Average Directional Index (ADX) is calculated as a moving average of the directional index. ADX is used for trend strength evaluation.

    High ADX values might indicate that the market is trending, while low values are considered to signify weak trend or non-trending conditions.

    Divergence indicator gives possible reversal signals when there are discrepancies between ADX and price movement.

    Divergence emerges when price and oscillator indicator move in different directions.

    For instance, an uptrend Negative Divergence occurs when price reaches a higher high, but the indicator fails to follow.
    In a downtrend, positive divergence occurs when price reaches a lower low, yet the indicator does not reach a lower low.
    For the most part, oscillator indicators and price trailing each other and move in the same direction.
    However, when they start to drift apart, the current trade may consolidate or exhibit a reverse pattern.

     

     

    Parameters:

    • You can change all ADX (Relative Strength Index) parameters:
      • ADX length: The number of bars used to calculate the ADX.
      • average type: The type of moving average to be used in calculations: simple, exponential, weighted, Wilder’s, or Hull.
    • Length 1&2: Define the range of bars which are used to calculate the current High/Low and previous High/Low.
    • Percent: The difference current High/Low and previous High/Low.
    • ADX_Percent: The difference between current ADX and the ADX value from previous High/Low.
    • Alert: provide both sound and message alert whenever a divergence is found. You can turn it on or off.
    • mode: Choose “Upper” to only plot signal arrows on price chart.
      Choose “lower” it will plot as a Stochastic  indicator with divergence signals.

     

     

    Please note: in order to plot this indicator on both price chart and lower chart, you need to load it in two places. And set Stochastic _mode to “Upper” in Price chart and Stoch _mode to “lower” in Lower chart. As shown in the following picture.

    If you want the same signals on both charts, all parameters have to be consistent on both sides.

     

    This indicator works in any time period and applicable for all securities(Stocks, Futures, Forex, Options,ETF, etc.).

    When you use this indicator in minute chart, it’s better to set “percent” less than 1, otherwise, lots of signals will be filtered.

     

    If you want to add any feature to this indicator, please send us a Customization request.

     

     

    How to use:

    The purpose of divergence indicator is to point when price  trend are moving into  opposite direction.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Golden Ratio Pivot indicator for Thinkorswim TOS

    The golden ratio is also called the golden mean or golden section.

    It has been used to analyze the proportions of natural objects as well as man-made systems such as financial markets.

    The mathematics of the golden ratio and of the Fibonacci sequence is intimately interconnected. The Fibonacci sequence is:

    1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, ….

    The golden ratio is the limit of the ratios of successive terms of the Fibonacci sequence (or any Fibonacci-like sequence).

    This golden ratio pivot indicator plot 5 support levels and 5 resistance levels based on the golden ratio and a center pivot line.

    It is very easy to use with no complicated parameters waiting for you.

    All you need to do is to load it to your chart.

    This indicator works on all time frames.

    The levels of support and resistance are formed at the beginning of a new session, and it will never repaint.

    The following images show how Golden Ratio Pivot works in same timeframe and same period but with different settings.


    Get it here: http://www.patternsmart.com/cart/index.php?route=product/product&path=57_83&product_id=315

    If you want to customise this indicator, please contact us.

    How to use True Center Band indicator on Daily charts.

    True Center Band is specially designed to work on intraday and daily chart.

    1. The top upper line(dark green) can be considered as overbought.
    2. The bottom lower line(Red line) can be considered as oversold.
    3. The overbought channel: between the 2 green lines.
    4. The center channel: between the 2 white lines.
    5. The oversold channel: between the 2 red lines.
    6. The upper buffer channel: between the light green line and the white line.
    7. The lower buffer channel: between the light red line and the white line.

    If you want to ride the wave, you must be able to see the wave first. There is no doubt that TCB is the right indicator to get the job done.
    The center line shows the trend of the price within a given period, and the bands indicate the possible price range between overbought and oversold areas.

    Now, let’s see how to use it on Daily charts.

    In the chart below, AUD/CAD broke out the 2nd lower band at the end of Nov 2014, but didn’t reach the bottom band.
    In Dec 2014, it broke out the 3rd lower band (Red line at the bottom) twice.

    When is the best time to entry?

    In my opinion, the circled area is the best time for a long position to be established.
    Why not entry right after the oversold breakout?
    Because if you enter at the first breakout, there may be a 2nd breakout waiting for you.
    The circled area confirmed the reversal trend, so that’s a better entry point comparing to the previous two  breakout areas.
    On the right side of the chart, I highlighted an entry point for short, if you are familiar with chart pattern, then you will know it’s a Head-shoulder pattern.
    The Head part fall back to the center channel before touching the overbought channel.
    Prior to formation of head-shoulder pattern, the price moved in the center channel, and there were a couple of instances break through the lower buffer channel, however given there was no upward breakout formed, the Head-shoulder is clearly a pump and dump.

    [Image: 001.png]

    As you can see these blue arrows in the chart below, showing the price trend and the direction of TCB are opposite — we have a slope divergence situation.

    [Image: 006.png]

    As shown in the chart below, at both positions (1) and (2), the price was quickly pulled up before it crossed above the overbought channel.
    There is a high probability that the price will go down in a situation like this.
    The price falls back to the oversold channel from position (1) to position (3), unfortunately, you can’t be certain whether the price will bounce back after hitting the oversold area.
    However, a W bottom pattern, which has served as a strong reversal signal at (3) definitely makes the situation clearer.

    [Image: 20.png]

    Overbought at (1) which is a good entry point for short, and Oversold at (2) where we should close the short position and enter long.

    [Image: 19.png]

    Take a look at the chart below, it’s a daily chart of MSFT from October 2013 to October 2015.
    The price fall after it crossed above Overbought area at 1,2,3,4,5,6.
    And reversal at 7 and 8 when price crossed below oversold channel.

    [Image: 18.png]

    The chart below is LNKD Daily chart from 2014.2 to 2015.9, both (1) and (3) are good for long, and (2) is good for short.
    Between (1) and (2), there also are couple times that price cross above the upper buffer channel, but they are not good entry points.
    Because these points are not overbought, if you short in ‘upper buffer channel’ there is chance that the price will continue to go up.
    I’m not saying that the price will definitely fall when it hits ‘top upper line’, but the probability is quite high.

    [Image: 17.png]

    The following pictures are examples of how price reacts when it cross over upper and lower channels.

    [Image: 14.png]

    [Image: 15.png]

    [Image: 16.png]