Questions on the Automatic Swing Detection Indicator

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Dear Ray:

I have downloaded the indicator today and watched the whole day and did paper trading as well. It worked excellent and gave many audio sound signals with blue arrows. I tried to go long when the arrow was facing UP and short when it is facing DOWN. My question to you are following:
Is it the right way to interpret the signal

1. What is the logic behind triggering the painting of trend line (green Up & red Down lines) , Blue arrows and audio sound signal.

Appreciate your timely reply



Best Regards,
Raj

[NinjaTrader_JoshP]

Hi DORAIRAJ_S,

You can view the all of the logic if you open the indicator in the NinjaScript Editor. Go to Tools->Edit NinjaScript->Indicator->select the AutoTrendLine indicator.

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Auto trend indicator with alert

Hi Josh:
Thanks for your prompt reply.
I have no idea on how to interpret the programming language as of now. I will try hard to learn in the days to come, for sure.
Meantime, can either you or Ray help me in putting down in a very simple language in three lines the answers to my following three points please.:
1.The logic behind triggering trend lines ( both green and red lines)
2.The logic behind triggering up and down arrows
3.The logic behind triggering audio sound.

It would greatly help to understand the logic before putting my money on real trading.

Appreciate your usual prompt co-operation.
Regards,
Raj

[NinjaTrader_JoshP]

The logic behind the trend lines is through the use of the Swing indicator. It looks for when the Swing indicator sets a new high/low bar and just plots accordingly. The arrows are for when the trends break. If an uptrend breaks then there will be a down arrow and vice versa. The audio alerts are triggered using the same logic as the arrows.

Sorry its not that simple to explain the logic driving the indicator. Its fairly complex, but hopefully that explanation helps you better use the indicator.

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Auto Trend Lines indicator

Hi Josh:
Thanks for your quick reply.
Your answer brings me another question to know what is swing indicator?

Coming to my main query, please , please help me to answer in more specific terms oin terms of bar closes. i.e let me help you to answer my question in following lines. Appreciate if you could fill in the blanks:
Number of consecutive higher highs / lower lows required to identify a pivot high or a pivot low...................?
Number of ticks required below or above the trend linebar to trigger a up or down arrow..........?
How many ticks has to go above or below the trend line for the arrow to vanish...................?

Thanks in advance for your prompt reply.
Regards,
Raj

[NinjaTrader_JoshP]

The Swing indicator is another indicator available in NinjaTrader. You can try adding it onto one of your charts to see what it does. It basically plots two lines that are somewhat like support/resistance lines.

Number of consecutive higher highs / lower lows required to identify a pivot high or a pivot low...................?
Defined by your "Strength" variable

Number of ticks required below or above the trend linebar to trigger a up or down arrow..........?
1

How many ticks has to go above or below the trend line for the arrow to vanish...................?
I believe when a new trend is detected

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Auto trend line

Hi Josh:
The arrow is triggered immediately after cossing 1 tick or after the close of that price bar.
It makes a lot of difference, as the respponse will be delayed in proportion to the time frame of the chart( 1min., 3min, 5mins, etc).

Appreciate your clarification.

Regards,
Raj

[NinjaTrader_JoshP]

Actually my bad. The calculations are done at the END of the bar by default. I was looking at my own settings earlier instead of the default settings. You can choose if you want the calculations to occur tick-by-tick (which would allow the drawing of arrows and such to occur by the tick) or you can have it calculate at the end of the bar.

The settings are in the Indicator dialog window when you add the indicator. There is an option called "Calculate on bar close". If you set it to true (default) then it will only run at the end of every bar. If you set it to false it will run tick by tick.

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Auto trend line

I am confused with the definition of 'STRENGTH' variable. Can you eloborate please.
The reason for my confusion is that the number of highs or lows before the pivots are not exactly '5' , when I observe either the swing or trendlines.
Appreciate your advise.
Regards,
Raj

[NinjaTrader_Ray]

Strength is the number of bars required to the left and right of a swing point.

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trend lines

If the default strength variable is 5,you mean that the number of bars on either side of the pivot should be 5, irrespective of all 5 consecutive bars on either side need not to be higher highs or higher lows?
I raise this point because in my 1,2 &5 minute charts not all 5 cosecutive bars on either side of the pivots are higher highs or lower lows (up pivot as an example).
Please advise.
Regards,
Raj

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Trend lines

Also please clarify that for instance the swing resistance line is drawn drawn only after 5 bars on the right side of the pivot is formed.
Regards,
Raj

[NinjaTrader_Ray]

A swing can be formed no less than the number of bars (specified by the strength parameter) to the right of the most recent swing point.

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Swing High/Low

Unfortunately, many times, I don't see 5 bars on either side of the pivots, especially in 1 min charts. Is there a reason?

[NinjaTrader_JoshP]

Raj please see attached image. Hopefully that should clear things up for you.