Best volume indicator when using Tick Charts in NinjaTrader - NinjaTrader | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Platforms and Indicators > NinjaTrader

Best volume indicator when using Tick Charts in NinjaTrader
Started:October 13th, 2011 (10:22 AM) by iwcjimbo Views / Replies:6,735 / 5
Last Reply:October 18th, 2016 (06:05 PM) Attachments:7

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Best volume indicator when using Tick Charts in NinjaTrader

Old October 13th, 2011, 10:22 AM   #1 (permalink)
Elite Member
Boise, Idaho/USA
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Optimus/Rithmic/Kinetick
Favorite Futures: YM,NQ,ES
Posts: 6 since Oct 2011
Thanks: 2 given, 4 received

Best volume indicator when using Tick Charts in NinjaTrader

I'm starting to use Tick charts instead of Time charts in NinjaTrader for ES, NQ and TF (Please view the attached file as an example of the benefits of Tick vs. Time).

So, the questions are:

1) What is the best Volume indicator to use when using Tick charts? Does the NinjaTrader version of TradeStations Better Volume indicator best fit the application and/or are there others?

2) How do I setup NinjaTrader (version 7.0.1000.7) to allow selection of Tick intervals instead of (or along with) Time intervals in the pull down menu in the Charts? Currently, as we all know, Time interval selections are the default choice.

Thank you in advance for your response.

Best Regards,

Attached Thumbnails
Best volume indicator when using Tick Charts in NinjaTrader-tick-charts-5-compelling-reasons-you-should-use-them.pdf  
Reply With Quote
The following 3 users say Thank You to iwcjimbo for this post:

Old October 16th, 2011, 02:29 PM   #2 (permalink)
Elite Member
Russia, St.Petersburg
Futures Experience: Advanced
Platform: Sierra Chart
Broker/Data: AMP/Rithmic
Favorite Futures: Futures
Jonson's Avatar
Posts: 242 since Jan 2011
Thanks: 209 given, 108 received

pls :car:

* If investing gets too difficult for a seventh grader to understand, the system is needlessly complex
* Markets produce an enormous volume of information, much of which is redundant
* In every game and con there's always an opponent, and there's always a victim. The trick is to know when you're the latter, so you can become the former
Attached Files
Register to download File Type: zip (8.2 KB, 235 views)
Register to download File Type: zip (9.3 KB, 193 views)
Register to download File Type: zip (9.4 KB, 209 views)
Register to download File Type: zip (9.2 KB, 189 views)
Reply With Quote
The following 2 users say Thank You to Jonson for this post:

Old October 16th, 2011, 03:15 PM   #3 (permalink)
Elite Member
Berlin, Europe
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
Fat Tails's Avatar
Posts: 9,525 since Mar 2010
Thanks: 4,213 given, 24,787 received

Thank you for having posted this question, it is an interesting one. I just had a look at the paper from e-mini watch, to see whether I can understand the five arguments put forward:

(1) As each bar is built from the same number of ticks, volume just indicates average trade size, nothing more and nothing less. That is quite an important statement, as high volume indicates a higher percentage of larger traders (dibbed the professionals).

(2) Argument is the same as argment (1).

(3) The tick chart is faster, when the market moves and is slower when the market does not move. The bars have a momentum compensation, meaning that a fixed period momentum indicator on a tick chart will not givesignals as clear as on a time based chart. However, if you trade bar by bar, the tick chart will give you earlier signals during breakouts.
Very true.

(4) Tick charts provide more cyclical information? The evidence produced refers to a single indicator and I would not follow this argument.

(5) Tick charts compress low activity periods and avoid whipsaws. Without any doubt.

But now back to the question on volume indicators:

Volume information on tick charts has an entirely different meaning

On minute charts volume measure partipation of traders per time unit, on tick charts volume measures trade size.

How does this affect the use of a BetterVolume indicator?

The Better Volume indicator relies on volume and range analysis. Point (3) above makes clear that during a breakout, you will get an earlier signal using tick charts. Earlier signal also means that the breakout bar has a smaller range, so the BetterVolume indicator cannot properly identify climax bars. This is particularly true for instrument, for which there is no enormous variation of the trade size.

Below is an example for the Better Volume indicator applied to both tick and minute charts. I have labelled 7 signals for churn bars that could be detected.

Better Volume on Minute Data detects 6 signals, out of which 4 were tradeable. Better Volume on Tick Data detects three signals, out of which only 1 (signal 7) was tradeable. Tre tradeable signal was detected one bar later than on the minute bars.

Conclusion: You cannot use the Better Volume indicator on tick charts.

What went wrong?

The Better Volume indicator detects two types of situations.

(1) Wide ranging climax and breakout bars with high volume. On a tick chart, both volume and range is levelled out. The signals are weak or non-existant. Here we need to go back to the basics. Wide ranging means that price moved a considerable distance in a short period of time, or otherwise put, that momentum picked up considerably. To show this effect on a tick chart, we would need to divide the range of the bar by the difference calculated from the timestamp of the bar and the timestamp of the previous bar. This can be done, but requires a new indicator.

(2) Churn bars indicate a high participation of traders without an adequate price move. As can be seen on the chart, the churn bars cannot be detected either. So again you would need to recode the indicator to allow for detection of churning,.

Conclusion: As it is coded now, the Better Volume indicator can be pretty useless on tick charts.

Attached Thumbnails
Best volume indicator when using Tick Charts in NinjaTrader-cl-11-11-1000-tick-_-cl-11-11-3-min-17_06_2011.jpg  
Reply With Quote
The following 14 users say Thank You to Fat Tails for this post:

Old October 16th, 2011, 04:31 PM   #4 (permalink)
Elite Member
Philly, Pa
Futures Experience: Master
Platform: NinjaTrader
Favorite Futures: ES, ZB
tigertrader's Avatar
Posts: 5,870 since Jul 2010
Thanks: 6,243 given, 30,977 received

I just monitor UVOL, DVOL, along with premo.

Attached Thumbnails
Best volume indicator when using Tick Charts in NinjaTrader-tick-1-min-_-prem_z-1-min-_-add-1-min-_-dvol-1-min-_-uvol-1-min-_-cl-10-11-1-min.jpg  
Reply With Quote
The following user says Thank You to tigertrader for this post:

Old September 26th, 2015, 03:33 AM   #5 (permalink)
Trading Apprentice
London United Kingdom
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: ES
Posts: 11 since Dec 2014
Thanks: 1 given, 2 received

Futures Edge on FIO

What happens to the S&P 500 when a new President takes office?


tigertrader View Post
I just monitor UVOL, DVOL, along with premo.

Where can I get hold of the UVol DVol indicator for NT illustrated in tigertrader's post?

Reply With Quote

Old October 18th, 2016, 06:05 PM   #6 (permalink)
Elite Member
Perth + WA/Australia, Sydney and Manila
Futures Experience: Intermediate
Platform: NinjaTrader and Optionvue 7
Broker/Data: NinjaTrader Continuum and Kinetick
Favorite Futures: Emini
Posts: 38 since Jun 2013
Thanks: 1 given, 13 received

Use the Weis Wave, its the best indicator for volume for tick charts.

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Platforms and Indicators > NinjaTrader > Best volume indicator when using Tick Charts in NinjaTrader

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
NinjaTrader tick charts for Scalping the 6E Euro TickTrader Currency Futures 5 October 15th, 2011 09:27 AM
Charts: tick vs time ?? abaker Traders Hideout 24 March 4th, 2011 04:05 AM
Volume Stop NinjaTrader Indicator sunny135 NinjaTrader 2 February 28th, 2011 12:54 AM
Tick charts question martifc Traders Hideout 3 January 21st, 2011 11:43 AM
can anybody code/find the indicator TVI - (Tick Volume Indic erable NinjaTrader 6 May 22nd, 2010 12:51 PM

All times are GMT -4. The time now is 07:51 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-22 in 0.11 seconds with 20 queries on phoenix via your IP