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I have searched high and low for a study that is part of the Thinkorswim platform to apply to my NinjaTrader Platform and haven't found it yet.
The study is FirstWave DPO_Mobo. It is simply a lower study that is based on a combination of Bollinger Bands and a Detrendend Price Oscillator. I have tried to use a BB and DPO study overlaid, however, the positional relationships aren't consistent.
Has anyone seen this created for NinjaTrader?
I would be happy to show the group how I trade crude futures, just need to get this darn piece of the puzzle completed.
Thanks for your help in advance.
Can you help answer these questions from other members on NexusFi?
In the attached image, you can see the FW DPO Mobo study as I use in on crude. The chart is based on the last 10 day ATR, currently at 8 cents per bar.
The parameters are:
1. A detrended price oscillator set to 14 periods
2. A mobo (which is really bollinger bands) set to 10 periods and a .08 and -.08 deviations
I don't have a specific definition for what defines the cloud coloring, but my suspicion is that its nothing more complex than a comparison of the current Bband midline number to the Bband number one bar back.
the first wave website offers a NT7 version of this indicator. I would be curious to know how you use it since I also am trying to incorporate it into my CL and GC trading.
It's a little more complex than comparing something to the midline, which isn't used at all.
Basically you compare a bar's close to the bands. If the close is above the upper band and the study status is "downtrend," then you have a breakout and the study status is changed to "uptrend." and vice versa. Sometimes you have to look back dozens or hundreds of bars for the comparison. In Thinkorswim the 1st breakout / breakdown indicator is invalid about half the time, since at that point the current status (uptrend or downtrend) is unknown. In the study I wrote, I assumed the 1st close outside either band sets the trend, although it is not valid for trading, it is valid for determining later decisions. Depending on the stock/option you're charting you may want 200 or more bars on the chart. If you're using one of my ToS studies just ignore the 1st up / down arrow.
Also keep in mind that the arrows are only valid at the close of the bar. ToS uses "last trade" for the "close" price until the bar actually closes. The price can go well outside the bands and it doesn't mean anything till the bar actually closes. Having said that, if you're trading daily charts and it's 5 minutes till the close and it looks like it will stay outside the bands then trade it. You do get slightly better results if the next bar opens on the correct side of the bands. Personally, I don't use the MOBO bands to enter trades. I primarily use them as exit points.
Source code for personal use available on request.
david at pc3i.net
studiessupport at pc3i.com
Hello David,
Thanks for explaining how the indicator/code you wrote works. I started using this indicator last week and realized that it generates false positives and false negatives. Reading your post, I now understand why.
I really appreciate if you could share the code.
Thanks,
