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- Trade what you see. Invest in what you believe -
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As explained in the video I have had many DM requests/clarifications RE: my tick chart setup so I just thought I would make a video. The formula's I use to get my tick plots isn't bespoke to NinjaTrader so you could do the same on any platform.
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- Trade what you see. Invest in what you believe -
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this would be useful to see the math behind the probabilities and how they change after another probability is achieved. I tried to reach Metrics maestro as they have many examples of the probabilities as the day unfolds on the site but they never responded to me........perhaps this math lesson needs to be in another thread ....sure wish I paid attention to things like mutually exclusive probabilities and stuff like that in high school...any help would be appreciated
Hey @JohnnyBoy. I have a quick question. Currently, your formula in NinjaTrader and shown in Excel is H+L+C/3. Are you trying to calculate the average tick value of the H,L,C values or are you purposely giving the Close just 1/3 of the weight of the High & Low ticks and then summing the values?
Let's look at the first bar:
High = -731
Low = -1588
Close = -731
If trying to calculate the average tick for the bar, the calculation should be (-731-1588-731)/3 = -1016.67 - within the range of the H & L readings.
If trying to give the Close just 1/3 the weight of the High and Low (your calculation -731-1588-(731)/3 = -2562.67 - outside the range of the H & L readings), can you please explain why? I have never seen a tick calculation done this way and was wondering the logic behind it?
Thanks again for openly sharing your ideas and setups!
@Lfx987 Yes, I get that and understand smoothing. That's why I was asking @JonnyBoy if he has a bug in his calculation or if he purposely set up his calculation this way (only C/3) and if so, why?
(H+L+C) /3 calculation will give you the bar pivot (average in other words).
The way I calculate mine (I didn't think people would pick up the mathematical errors differences, so good for you guys )
(H)+L+C /3
I change the order of operation because I use this calculated result in an external calculation that I use somewhere else.
Graphically (if you held the charts side by side) there would be no difference to the plots other than if you looked at the scale. The ratios and relative plots will the same. In other words I wouldn't sweat it too much, using (H+L+C) /3 is totally fine and dare I say it...correct.
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- Trade what you see. Invest in what you believe -
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With JB's permission, I am attaching a copy of my Sierra Chart template for the tick chart set-up.
There are two charts in the workbook:
Overlaid on ES:
TICK NYSE
NISS NYSE (Advance-decline)
Overlaid on NQ:
TICK NASDAQ
NISS NASDAQ (Advance-decline)
The charts start/end time are NYT 09:30 to 16:00 (Cash markets open/close).
Depending on your data provider, you may have to change the Chart Setting symbol (I am with AMP). However the market internals are provided by Sierra. You may just have to wait a while for the data to load.
There is a simple solution here and that is to start collecting this data yourself. I piggy backed off of MMs work after starting a similar venture myself years ago when I realised his data collection and presentation was leaps and bounds above how I was doing it.
I use Excel extensively to do this work for me. After enough data collection you will find there are some sub-probabilities you can leverage from.
Going beyond the next probability (further to MMs initial ones) is probably all you need to do as @CalvinoHobbino pointed out, things can get too granular.
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- Trade what you see. Invest in what you believe -
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