TIS_ATR_BarColor Indicator for NinjaTrader
Update
Since the release of the ATR_BarColor
Indicator ( see previous post ), I’ve been experimenting changing some parts of
the logic and adding different conditions to improve the performance of the
signals when trading this indicator as an automated system.
Lets make a review of how this indicator
works ;
As we have described before, we are using a
well known trailing indicator, known as SuperTrail, SuperTrend, MultiTrail, etc
as a complete trading system, with entries, exits and reversals.
On the following example we can see the
standard TIS_MultiTrail Indicator showing an up trend ( blue bars ) changing to
a down trend ( red bars ) when the lower blue multitrail line is broken. The
bear move finishes when the red upper multitrail line is broken.
Used as Trailing stop, we exit the Long
position on “A” and exit a Short Position on “B”.
If we want to use this Indicator as Trade
Setup, now we need an entry signal. The most obvious entry is the same signal
we use as exit ; for example we enter Short closing the Long at “A” and then
close the short while entering Long at “B”.
This is a valid setup but it would be
always in the mark et reversing
positions, having very good winners while mark et
moves, but the performance on sideways mark ets
would be low, producing lot of reversals with small loses on each.
That was the reason of the creation of the
ATR_BarColor Indicator, which adds a Neutral
State
After a Neutral State
The old version of ATR_BarColor used fixed
strength pivots of 1 bar length, while this new version ; ATR_BarColor_v2 has
user defined pivot strenth.
We can see the effect on changin the pivot
strength on the following pictures.
Using a 4 Bar Pivot
Using an 8 Bars Pivot
Another change in the logic includes a Fast
Move Detection avoiding to wait a pivot creation when the trend change is fast.
This example shows a fast transition from
Red to Blue with only 1 yellow Bar :
On this example the first Long signal
happens at the close of the first Blue Bar.
The updated version of this indicator for Ninjatrader can be found on this link.
Please feel free to post any question or suggestion here...
 | Pablo Maglio , The Indicator Store |
