Informing Traders through News Indicator

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Informing Traders through News Indicator

Good news! It’s not the end of the world and you can still trade Binary Options. Since the world is given another chance to trade why not improvise it? In order to achieve this, you have concentrate on the basic and technical market aspects. The internet is filled with technical aspect. Thereby it is sometimes best to go back to the fundamentals and learn more from it. With this, you need to rely on something that can give you appropriate news that can keep you well informed to be a good trader. Now let’s learn how use a custom indicator.

USING A NEWS INDICATOR

The news indicator can be your best trading partner. When you use the News Indicator you can be well updated especially because it comes with an alarm that alarms every ten minutes prior to its actual release. It also has another alarm that goes off five minutes before the release. This ensures you that you do not miss some vital trading information. The News Indicator may not show you clear directions using arrows and colors, it can still be considered as a great tool. This is an awesome tool especially when you have a lot of trade that technically look great. Another great thing about the News Indicator is that it directly displays vital events on your chart. You can control your trading urges until the release is done.

You can install this custom indicator on MT4 chart. These are actually the same steps as installing other custom indicators. Of course you need to download it from the website or from forums. You then have to copy it to the folder on you MT4 platform labeled “experts/indicators”. Your full path may look like this – C:\Program Files\MT4 Name\broker\experts\indicators. When you have done this, close the platform and then reopen it. After reopening it you can then click Insert then Indicators then Custom then finally click News Indicator. You may have to adjust a few settings after installing it. You must click “Allow DLL imports.” This actually gets the indicator to work.

WHY IS THE NEWS INDICATOR BAD?

The only big thing that makes the news indicator actually suck is the fact that you need to go through a long process just to install it. But just put in mind that making money requires a lot of patience and time. Yes, the News Indicator may be quite lengthy to install but when you have set it you do not have to do the process all over again unless you uninstall the MT4 platform or your computer is damaged.

WHY IS THE NEWS INDICATOR GOOD?

Using this indicator you can simply focus on what you need to do which is trading. You can look for news that can greatly affect your trading conditions. This indicator shows “Red” events with high impact that are up coming. However, you have to put in mind that this is not vital for knowing how the basics can affect the market. But if you are new in the trading scene then you can be overwhelmed by this.

Free Trading Indicators & Downloads

NinjaTrader 8 Trading Platform

We use NinjaTrader 8 to day trade. After downloading and installing the software, you will be able to use it for all of your trading needs: including charting and placing trades. NinjaTrader is free for practice trading (also called sim or paper trading). After signing up for the simulator, we will also send you our free Get Started Trading Guide, which will help you quickly learn the basics.

News Indicator for NinjaTrader 8

News events can create strong, sudden volatility in any market. Use this indicator to know when planned financial news will impact the markets. Upcoming events are displayed directly on your NinjaTrader charts. This is a must-have, especially for those operating with limit screen space who don’t want to bother with having another window open for news. The news event list updates automatically. Note that the indicator does not account for unscheduled news events like severe weather, war breakouts, resigning CEOs, etc.

Each setting is easy to understand. For example, you can limit news events to US-only. Be sure to learn an exact method for trading the news by watching the video.

  1. Download and save the indicator .zip file into a folder that you’ll remember (like the desktop or an indicators folder you’ve created).
  2. In NinjaTrader 8, open NinjaTrader’s Control Center > Tools > Import > NinjaScript Add-On.
  3. Find the .zip folder you downloaded in the first step and double–click it. Accept and messages that appear.
  4. Open a chart > right-click the chart > Indicators > find the news indicator (look for DTTW) in the list and double-click it > click OK.
  5. You should now see news events on the chart. Note that some days simply won’t offer news events. You can test if the indicator is working by changing your Windows system time to a day and time that contained upcoming news events. Remember to restore your clock settings afterwards.

Online News Calendar for Day Traders

Just like the news indicator above, you can stay aware of upcoming news events using just your web browser! When visiting the Day Trade to Win News Calendar, you will automatically get scrolled to the most recent news event. Compare the current GMT time with the GMT times for each event listed so you can prepare yourself ahead of time. Generally speaking, we recommend that you wait 15 minutes after a medium or high-priority news event before trading again. The News Calendar is updated every Monday. Refresh the page on Mondays and you’ll have all the news events that affect your trading for the entire week.

Bar Timer for TradeStation

A bar timer will provide you with a countdown for the current candle/bar in minutes/seconds, starting over when a new candle/bar posts. For example, on a five minute chart, a bar timer will count down from five minutes. Knowing when the current bar/candle will end and when the next begins is essential to many strategies. (Note that NinjaTrader comes with a bar timer indicator.)

In TradeStation, right-click a chart > Insert Analysis Technique > Import > Using Import/Export Wizard > Select the second option from the top (Import EasyLanguage file (ELD, ELS, or ELA) > Next > browse for the ELD file you downloaded > complete the process. Note that the bar timer needs time to sync – one full rotation before it begins to work properly.

Tick Counter for TradeStation

The tick counter will tell you how many ticks remain in the current plotting bar. For example, if you use a 250 tick chart, each new bar will start counting down from 250 ticks. The current remaining tick value will appear next to the currently plotting candle. By default, the tick countdown color is magenta. Knowing when the current bar/candle will end and when the next begins is essential to many strategies. (Note that NinjaTrader comes with a tick counter indicator.)

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In TradeStation, right-click a chart > Insert Analysis Technique > Import > Using Import/Export Wizard > Select the second option from the top (Import EasyLanguage file (ELD, ELS, or ELA) > Next > browse for the ELD file you downloaded > complete the process. Open a tick chart (right-click the chart > Format Symbol > Settings tab > select Tick as the Interval > Set the Interval Settings to your desired tick amount (ex. 250 for the Price Action Scalping method), > Under “For volume, use:” select Tick Count. Furthermore, if you want to hide the empty space on the bottom of the chart that appears as the result of this indicator, you can do so by right-clicking the chart > Format Symbol > Scaling tab > Change Sub-graph to 2. Note that this may interfere with other indicators on your chart. Note that the bar timer needs time to sync – one full rotation before it begins to work properly.

Use these trading downloads, tools, and software at your own risk. We do not provide accuracy or performance guarantees. Day trading can result in significant financial gain and loss. See our full disclaimer below.

Your name and email are required to download. It’s free!

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Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described herein. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Trade Results Disclosure: All trades presented are not traded in a live account and should be considered hypothetical.

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Day Trading Indicators To Simplify Your Trading

Last updated on April 8th, 2020

Day trading indicators are a useful trading tool that should be used in conjunction with a well-rounded trading plan but are not and should not be the plan itself.

In this trading article, I want to cover 3 best trading indicators for day trading that I find very useful in trading.

You will also learn how to see momentum on the chart and have a general area where you will look for trading setups.

These indicators are useful for any style of trading including swing and position trading.

Day Trading Indicators Give Information About Price and Volume

Almost every charting platform comes with a host of indicators that those who engage in technical trading may find useful. You simply apply any of them to your chart and a mathematical calculation takes place taking into the past price, current price and depending on the market, volume.

Different types of technical indicators do different things:

  • Trend direction
  • Momentum or the lack of momentum in the market
  • Volatility for profit potential – Is the market really moving?
  • Volume to see how popular the market is with other traders

The issue now becomes using the same types of indicators on the chart which basically gives you the same information.

While this may be explained as looking for “trade confirmation“, what it really does is give you conflicting information as well as more information to process.

A simple example is having several trend indicators that show you the short term, medium-term, and longer-term trends. From a multiple time frame perspective, this may appear logical.

Many traders though can attest to seeing a perfectly valid setup negated because of a trend conflict and then watching the trade play itself out to profit.

Looking at this chart, the evolution of price and the lag of the moving average indicators can give day traders conflicting signals

  1. Price below longer-term average means short
  2. Price above medium-term means long
  3. Price above short term means long

The blue lines indicate day trading opportunities that would either be skipped or have you on the wrong side of the market if you relied on the trading indicators for your decision-making process.

The bottom example shows a consolidation with higher lows and momentum breaking to the upside. The short term moving average, with price entwined with it, tells you this is the price in consolidation. The longer-term moving averages have you looking for shorts.

Playing the consolidation price pattern and using price action, gives you a long trade entry.

The main drawback with most trading indicators is that since they are derived from price, they will lag price.

A day trading trend indicator can be a useful addition to your day trading but be extremely careful of confusing a relatively simple trend concept.

Day Trading Indicator Selection

Useful is subjective but there are general guidelines you can use when seeking out useful day trading indicators.

One simple guideline:

  • Choose one trend indicator such as a moving average and
  • Choose one momentum trading indicator such as the stochastic oscillator or RSI.

You must know what edge you are trying to exploit before deciding on which trading indicators to use on your charts. To add to that, you must also know how the indicator works, what calculations it does and what that means in terms of your trading decision.

For example, the idea that moving averages actually provide support and resistance is really a myth.

Looking again at the chart above, when the moving average connects with price, what you are seeing is the average price not being as large as recent history and the moving average simply catches up to price.

Do Trading Indicators Work?

It all depends on how they are put together in the context of a trading plan. Some of the most used technical indicators such as moving averages, MACD, and CCI work in the sense that they do their job in calculating information.

For example, using several moving averages together like the alligator indicator can quickly show you a market that is not only ranging but also trending.

A golden cross or it’s cousin, the death cross, can show you trend direction and even act as trade entry and exit signals

The power of the indicator lies in how you interpret the information as part of an overall trade plan.

Don’t be sold on the “holy grail” indicator that marketers flood your inbox with. Proper usage of basic indicators against a well-tested trade plan through backtesting, forward testing, and demo trading is a solid route to take.

All of the systems that are offered by Netpicks not only come with tested trade plans but also hammer home that you must prove any trading system or trading indicator to yourself.

Threat Of Over-Optimization

There is a downside when searching for day trading indicators that work for your style of trading and your plan.

Many systems that are sold use standard indicators that have been fine-tuned to give the best results on past data. They package it up and then sell it without taking into account changes in market behavior.

The backbone of many trading systems is very mechanical in the sense that “if A happens, do B”.

There is nothing wrong with optimizing to take into account current market realities but your approach and mindset in doing so can either have you being realistic or over-optimizing out of the realm of reality.

One way you may choose to not fall into the over-optimizing trap is to simply use the standard settings for all trading indicators. This ensures you are not zeroing in on the most effective setting for the market of today without regard for tomorrow.

What Time Frame Is Best For Day Trading?

The best time frame of 5-15 minute charts for trading is what is popular with traders. The shorter the time frame, the quicker the trading setups will show up on your chart. Best is subjective and will depend on your trading strategy and available time to day trade.

Is There A Best Intraday Indicator Setting?

There is no best indicator setting and the setting you use will determine how sensitive the trading indicator is to price movement. A longer look back period will smooth out erratic price behavior. A short look back period will be more sensitive to price.

Notice what happens when I change the RSI indicator on a 5-minute chart from a 20 period to a 5 period faster setting on the graphic above.

Best Technical Indicators For Day Traders

The best technical indicators that I have used and are popular among other traders are:

  1. RSI – Relative strength index is one of the best momentum indicators for intraday trading
  2. Moving averages – Can help a trader determine the trend, overextended markets and are often used as dynamic support and resistance
  3. Channels – From Donchian Channels to trend line channels, these can help a trader see a change in the rhythm of the market.

Let’s take a look at 3 trading indicators and how they can apply to your own trading.

Intraday Trading – RSI

What I want you to take notice of is when the breaks either the 70 level or the 30 levels. This is not to take a reversal trade-in “overbought” or “oversold” territory. Markets have a way of staying in those conditions long after a trading indicator calls the condition.

20 Period Moving Average

The moving average is not for trend direction. What I want you to note is how far price moves away from the indicator, hugs the indicator, or “bounces” from the indicator

Trading Channels

Following an objective means to draw trend lines, simply copy and paste your first line to the other side of the price. Markets move in rhythm and anything outside of that rhythm will cause a break of a trend line. That can indicate that “something new” is coming to the market and we could be seeing a trading opportunity.

How To Use These Indicators For Day Trading

I will first tell you how NOT to use these 3 trading indicators. They will not be your ultimate decision-making tool whether or not to enter a trade. For that, let price action dictate and you may find this free Candlestick Reversal PDF useful in putting a trading plan together.

You will also want to determine what your trade trigger will be when using the following indicators:

  • RSI will be used to show strong momentum. If price breaks either the 70 or 30 levels, we will be on alert for a trading setup in the same direction as the break
  • The moving average will be used for a general area-wide zone – where we will look for price to resume after a pullback.
  • The channels can be used for trade direction, signify a change of trend, and depending on the size of channel, used in the same manner as the RSI indicator
  1. RSI is oversold which lets us trade short. Price is far from the upper line and moving average. All we get are entries via breaks of consolidations.
  2. Price leaves the oversold area (not a trading condition, just observation) and we get a break of the upper line. Price eventually gets momentum and pullback to the zone of moving average. We are on alert for shorts but consolidation breaks to the upside. This is a trade you could position for due to the “something new” – break of channel and momentum in price
  3. RSI hit 70. Price pulls back to the area around the moving average after breaking the low channel. After breakouts – generally, see retests and we are looking for longs due to price trend. Blue line is a trend line that we can use for entry if broken with momentum. Price breaks back upside with momentum.
  4. 70 RSI and pullback. Break to upside
  5. Price has broken longer-term channel and formed a down sloping channel. RSI had hit 70 and we are still looking for upside. Price breaks channel, consolidation and upside momentum

You can see that we can see that any trading decision is made from price action. The indicators frame the market so we have some structure to work with.

  • We were using the RSI indicator to show us a market that has momentum
  • We were using the moving average as a general location for some trades
  • We used the trading channels for trend, monitor breaks for momentum and can use the breakout – pullback sequence to a position in a trade

Does The Choice Of Trading Indicators Change?

As you can see, this list gives 3 trading indicators you can use in a manner that still allows price action to determine your trading.

You may eventually stop using the RSI and simply measure momentum by how far price is from the moving average.

The moving average may disappear from your charts and you will use the tops and bottoms of the channels as general zones for the price to react at.

Every trader will find something that speaks to them which will allow them to find a particular technical trading indicator useful.

Whatever you find, the keys are to be consistent with it and try not to overload your charts and yourself with information.

Simple is usually best:

Determine trend – Determine setup – Determine trigger -Manage risk

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