Included with NinjaTrader’s Order Flow + suite of premium charting tools, the Trade Detector helps traders visualize areas of significant trading volume. This visualization of the tape allows order flow traders to find new potential opportunities.
How the Trade Detector Works
The Trade Detector tracks trades based on buyer or seller activity and plots circles over the price bars where considerable trading volume has taken place. The diameter of the circles is proportional to the total volume traded at each highlighted area.
The markers are colored red and green based on the proportion of sell and buy volume, respectively. Buy volume consists of trades which took place at the ask price or higher, and sell volume consists of trades which took place at the bid price or lower.
In the chart above, the circular markers indicate areas with the most significant amount of volume.
Additionally, hovering the mouse pointer over a Trade Detector marker will display the following:
- S = Sell volume
- B = Buy volume
- V = Total volume
- P = Price level where this activity occurred
Customize Volume Activity Calculation
The Trade Detector utilizes 3 main modes to calculate volume activity:
- Consistent Bid/Ask: Detects areas of significant volume which occurred when the bid and ask price stayed the same across multiple bars
- Price: Indicates large volume which took place at a particular price level within a bar
- Block: Signals where large volume occurred from individual ticks
Identify Significant Price Levels
When used in combination with NinjaTrader’s Order Flow Market Depth Map the Trade Detector can help highlight potentially significant price levels such as support and resistance.
With both the Trade Detector and Market Depth Map applied, traders can pinpoint areas of high volume and also view a chronological display of Level II data. Using these two tools in conjunction can strengthen a trade thesis and provide additional insight into order flow.
As with all indicators, false signals can occur and traders should always remain aware of the risk involved in trading securities.
Get Started with Order Flow +
The Order Flow + suite of premium features available for NinjaTrader 8 provides tools to analyze trade activity using order flow, volumetric bars & volume profile.
Current NinjaTrader users can get started with the Market Depth Map and the rest of the Order Flow + suite today: Learn More
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