Level II/Tick Volume Indicator

[hondo69]

Personally, I trade the trends. This means I'm on the sidelines most of the time, but I'm fine with that. I look for a few good opportunities on any given day and even keep my eye on overnight trading as well.

Most of the time, trading occurs within a range of support and resistance. Should a breakout begin to develop, volume is the key indicator to watch. I have volume plotted against it's moving average. If it is higher than average and moving up, there's a good chance of a breakout. In general, a 25% increase over average volume is what to look for.

The next step is to prepare for an entry point, and this is where I plan to use this new indicator. On an uptrend, if the bulls are firmly in control I'll enter my trade.

Next you have to manage the trade, and I use a trailing stop for this. Typically, I'll start my stop at 6 ticks then adjust it as the market moves. This limits my loss to 6 ticks. I only move my stop in the direction of the trade.

As ticks start to accumulate in my favor I will move my stop accordingly. At first, I move it to break even once I accumulate 5 ticks. Next, I move it again to protect 1/2 my profits as the market moves in my favor. For example, if I've accumulated 2 points I'll move the stop to a 4 tick profit. I then move it up one tick for every 2 ticks accumulated.

This locks in the profits why still allowing the market room to breathe. It can seem frustrating to be up 3 points to only end up losing half that (a 6 tick profit), but that's being short sighted. After you miss out on an 8 point run a few times it will make sense to keep your stop "loose" once the ticks start adding up.

They key to this whole system is to keep a close eye on volume of bulls and bears. Once the volume starts to drop overall the trend is losing steam. Time to tighten up the stop and lock in all the profit you can. If the volume is dominated by one side vs. the other you can adjust your stop as you see fit.

In short, start with a tight stop. This protects your assets. As you accumulate ticks loosen up the stop so it equals 1/2 your profits. If you spot something spooky in volume changes, tighten up that stop and prepare to go to the bank.

Hope this helps.

[kissandfly]

yes it is a great indicator, very well done, good job
But, I don't have any strategy to use it for.
I try but I can't predict anything with it , exept maybe some levels where there are more order waiting, acting as a barrier
Does someone has a strategy with it ?
Thanks again

[hondo69]

I found this indicator very helpful. There's really nothing else that comes close to giving a real time balance of the bulls and the bears. I've started using this just today, but already feel like I can't live without it. Great work.

[warrior]

thanks Johnathan, I sent you some feedback via PM - hoping helpful. cheers.

[j0hnth0m]

I have uploaded version 1.5. This version allows complete color customization.
(And I did fix the persistance issue with the colors.)

You can always find the latest version of this indicator on my blog. Here's the link: [email protected]

[j0hnth0m]

I have uploaded version 1.4 that, hopefully, incorporates most the good suggestions I've received since the first version.

[j0hnth0m]

Hi there,
Another idea.
How about adding a Cumulative Bid/Ask Ratio number somewhere near the Cumulative Bid or Cumulative ask totals.
This ratio would update with the changes to the Cumulative Bid/Ask totals.
In the screenshot below the Cumulative Bid total is 2940 and the Cumulative Ask total is 5021...a ratio of 1.71.
Maybe it could change colors based on the which Cumulative Bid or Ask ratio is higher.
Just a thought.
Great work on this indicator.

I'm updating this now and trying to incorporate all of the great suggestions. I will post and update by end of day.

[T2020]

Look at the posted snippet from the code and see the three commented lines. Those were the original lines, replaced by the new three lines of code above them.

OK , thanks eDanny . Got it fixed now .

[eDanny]

Look at the posted snippet from the code and see the three commented lines. Those were the original lines, replaced by the new three lines of code above them.

[T2020]

Thanks. I'll make that change.

Has an updated version of this indicator been posted ? I don't understand
what's suppose to be changed in the script .

[asja.aa]

Hi, it was my mistake. I thik I was compiling a already compiled version of the indicator. I don't know but now it works.... I did I don't know what kind of mistake. In any case: thank you for your message
Angela

[NinjaTrader_Bertrand]

Which errors do you get Angela, those could also be present in other scripts on your machine - please check this tip for resolving those - http://www.ninjatrader-support2.com/...ead.php?t=4678

[asja.aa]

It sounds a very interesting indicator. I downloaded it but I had some compiler errors that I am not able to solve. If anyone could help me I would really like to try it!!
Thank you for sharing it
Angela

[eDanny]

See post #12. You can edit the code and put whatever colors you like and they will be there next time.

[T2020]

I like this indicator as well . I'm just wondering if anyone else has this problem ? Every time I open a chart or group with this indicator on it , what ever
colors I have saved for the histogram are gone and it appears just white . I
have to reset them every time .