Week Trades using Indicators for Ninjatrader from The Indicator Store

Hello ! We will describe the trades we could execute this past week using the Indicators for Ninjatrader designed by The Indicator Store ; TIS_Small_Range and TIS_Impulse_Trader.

Impulse Strategy

On the following charts, we can see the entries of the Impulse Setup on the British Pound  ( Forex : GBPUSD ) and a comparison of its entries to the futures version ( 6B )

As we can see on the next chart, this system is valid on Forex and futures, showing the same entries on both

The only difference is the tick value ( $6.25 ) vs GBPUSD pip value.

The British Pound (6B)(GBPUSD) has been moving very well this week, making this strategy very profitable.

The Timeframe used is Range 6 and the parameters are :
Slow Moving Average Period =
Channel Size = 8 ticks/pips
Fast Moving Average = 8
Entry = -3 ticks/pips from Slow moving Average

On the following Chart, we see the same Strategy applied to the euro-dolar pair (EURUSD).
As we already explained, this is also valid for Euro Future ( 6E ).

 On this example, we had 3 sell signals today ; 1st got the initial target, 2nd was a loser and last short got 1st and 2nd target ( or exited at trailing stop )

For the Euro Setup We replace the fixed envelope by a Bollinger ;
Bollinger Period = 50 , Standard Dev = 0.5
Fast Moving Average = 8
Channel Size = 5 ticks ( around Fast Moving average)
Entry = Slow Bollinger Band with Standard Deviation = 0.8

Small Range Setup

This chart shows the Small Range Setup applied to Gold using a 9 Range Timeframe.

Today , Gold was mostly on sideways mode, without allowing to get bigger targets than usual.
We had a long with a target 1 winner and runner out at breakeven. Then a short winner, again, with runners out at breakeven, and finally a short loser.

Have a Great Long Weekeend !

Pablo Maglio
www.TheIndicatorStore.com

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Small Range and Impulse Indicator Alignment

On the following chart, we can see the use of the Impulse Indicator and Small Range Indicator for NinjaTrader showing the first short signal of the week on Crude Oil.

Luckily, both signals of both uncorrelated systems are triggering on same Price Area

The implied risk of both trades are similar and in the range of usd 150, while the possible target is bigger than usd 500 using trailing stop.

First Sell Trade of the Week using Small Range Setup

First Sell Trade of the Week using the Impulse Strategy

As you can guess, nothing better for a strategy, to have another uncorrelated setup aligned on same Price Area

For those who follow these Setups, knowing the fact of confluence increases the probability of success.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Impulse Setup on EURUSD and AAPL

Hello, Welcome !
On this new Article we continue analyzing the Impulse Setup. Now the question is ; Is this useful for Forex or Stocks ? .... YES ! !
On this publication I will share with you examples of application of the Impulse Setup On Forex and also on Stocks ( AAPL ).

The following chart is a 15 Minutes EURUSD with the Impulse Setup Indicator applied.

We can see several shorts happened last week, and today we had the first long ( currently a nice winner )

And now an example on Stocks, for example a 15 minute AAPL chart :

The number of trades is much lower on stocks than Forex, and the number of signals on Forex is even much lower than Futures. But the system works anywhere.

Please remember that on previous posts I have much more detailed information about this Setup.

The Indicator Store has dedicated Indicators and Strategies for this setup, to visualize, identify, backtest and optimize its settings. 

If you liked this article please share and post any comments.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Impulse Setup on Gold

As a continuation of yesterday's Post where We explained the Impulse Setup, today We had an excellent example of this Setup on Gold ( GC )

In the attached chart we can see how after the Employment Report at 8:30 ET, the Gold Market had some quick moves almost impossible to trade ( take a look at the  TIS_Bar_Time indicator at the bottom of the Chart showing several bars with time duration close to zero ).

After Maket calmed from the Report reaction, the Bar duration returned to an average of 30 seconds and We had 2 signals ; 

A Short, with only target 1 available ( 10 to 15 ticks ). Rest of position out at break even.

A Long, with first and second targets, and also a possible runner with trailing stop

 If you liked this setup or have any questions and suggestions please post and share !

 Regards,

Pablo Maglio
www.TheIndicatorStore.com

Trade Setup for Impulsive Markets

The most profitable markets are those with Impulsive Movements.

A Market leaves the Trend mode and switches to Impulse Mode when there are no more pullbacks big enough to get into the trade, and when it finally happens the move is finished leaving just a small winner or even a loser.

On volatile markets, the switch from sideways to Impulse is so fast that we dont even get an entry on the first trending pullback. This is why it is so important to define when the Impulse Mode is starting so we can use an early entry.

The most volatile markets are crude oil, gold, silver, nat gas ( CL, GC, SI, NG ).

Cash Index Markets like S&P ( ES ) are mostly on sideways or trending mode. Some of these trend moves may sometimes change to Impulse Mode, allowing to the trend entries increase their profits.

We have several ways combining classic Indicators, to define when the market is Impulsing.

The most used ways to trigger an Impulse Signal are :

1)      A Fast Moving Average crossing outside a Slow Band

2)      A Fast Band crossing all outside a Slow Band ( similar to previous method but with an extra security margin)

In the following Charts we can see both Methods ; ( The vertical Red Line shows where the Impulse Mode Starts on each example )

     

 The Band can be a Bollinger Band, a Keltner Channel or a Fixed Envelope ( like on the examples shown )

We have to take into account that if we use Range Charts, all Bars will have same height, so volatility ( and ATR ) will be constant, turning Keltner Channels into Fixed Envelopes.

Now we have different ways to define the Impulse Mode Signals, now we just need to define the entry.

In a trend system, we use the slow EMA ( like on the PM_EMA setup ), but on Impulsive Moves, the Markets never come back to the EMA.

The entry can be defined again using an envelope ( Bollinger, Keltner, Fixed ) of lower size than the signal envelope ;

An entry for example 1 can be the lower slow band ( green) 

An entry for example 2 can be a 50% of upper fast band ( blue )

As shown, using EMAs and Envelopes to define signals and entries, we can get a big number of different setups. We just need to find the best combination for each Instrument.

Having all these rules automated is a big Help that let us backtest, optimize and even trade any configuration. We at The Indicator Store have a Strategy Pack called PM_Impulse, that contains several individual strategies following different combinations of the explained setups.

If you like this article please leave your comments and share with your firneds

Regards,

Pablo Maglio
www.TheIndicatorStore.com

OpenGap Indicator for NinjaTrader

There is a lot of info about the Gaps, and mainly about those not yet closed ; the OpenGaps. In the following article I will show the several ways we can use the OpenGap Indicator.

To begin, we must define what is a "Gap" ; it is the difference between prior session Close and current session Open.
This definition limits the number of markets where this definiton is valid to apply ; We need an instrument with  a well defined Day Session time like Standard and Poors ( ES ), where there is a  24 Hours Market, but the main Volume is in the Day Session Trading Time.

If the Gap ( Yesterday's Close - Today's Open ) is greater than a certain value ( usually 2 to 3 points in ES ) then we consider there is an Open Gap.

The Open Gaps are followed by lot of Traders, so its importance as Support and Resistance is huge. If We are not following this Strategy, We should at least have into account the existent Open Gaps, to act according to their location. For example, taking a partial or total profit slightly before the next Open Gap is a good idea to start.

In the following picture, we can see a recent example from December 28, 2012:

Another examples form November 2012

These example pictures are using the Indicator OpenGap for NinjaTrader, that can be obtained on the following link

If you liked this article, please comment or share with your friends.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

TIS Squeeze Darvas Setup Indicator

On this New Post I will explain the Squeeze Darvas Setup and how to trade it with an Indicator for Ninjatrader

The Name of the Setup is Darvas_Squeeze and the indicators needed are :

• Squeeze Indicator
• Darvas Indicator

For the purpose of this explanation I will be using TIS_Squeeze and TIS_Darvas but any general Squeeze and Darvas indicators will work fine.

If you are not sure how a Squeeze indicator works, it is very easy to understand, in fact, if you don't have a squeeze indicator, with just a Keltner and a Bollinger is possible to know when there is a squeeze signal condition :

On the following picture we can see a blue envelope ( Keltner Channel) and a green band ( Bollinger Band ).

When the Keltner is bigger ( containing inside) the Bollinger then there is a Squeeze Signal ( red dot on the Squeeze Indicator at the bottom ).

The rectangles are the Darvas boxes, and these are used to define the breakout zone ;

The way to trade this setup is using bracket orders ;

Buy Stop above the box and Sell Stop below the box.

We can use an offset in ticks, where the orders must be placed from the box ; N ticks above for the Buy Stop and N ticks below for the Sell Stop.

So, the logic to trade this setup is as follows :

1. Wait for a Squeeze Condition ( Red Dot )
2. Place Buy Stop over Box + Offset
3. Place Sell Stop below Box - Offset
4. If one orders get filled, cancel the other
5. If no more Squeeze condition ( no more red dots ) and orders are not filled, the trade is cancelled

About the settings to use, the Darvas don't need any input parameter, the only inputs needed are for the Squeeze ( Period, Bollinger Standard Deviation and Keltner Multiplier ).

The period is the same for Keltner and Bollinger.

Some good settings to start with are : a period of 20 , a Keltner Multiplier of 1.5 and a Bollinger Standard Deviation of 2.

Please post any comments, suggestions, and question here...

Also if you have a good combination of settings and want to share them, please post them here...

This setup can be traded using the Combo Indicator TIS_Combo_Darvas_Squeeze

Regards,

Pablo Maglio / www.TheIndicatorStore.com