A powerful combination to trade index futures on NinjaTrader

A powerful combination to trade index futures on NinjaTrader

Discover how to trade emini index futures using renko charts and time based charts on NinjaTrader

00:05

Using Renko with time base charts for momentum

00:05

The speaker discusses their workspace setup, which includes multiple wrinkles and multiple time-based charts, highlighting the powerful combination of using Renko charts alongside traditional time-based charts. They explain that Renko and tick charts provide a sense of momentum that time-based charts alone do not show. The setup involves using multiple time frames simultaneously, such as 15-second, 30-second, and 1-minute charts, with Renko charts aligned to these time frames through a wrinkle optimizer tool.

01:14

Optimal Renko brick size adjustment explained

01:14

The video explains how the optimal Renko brick size is determined dynamically for a trading instrument during a session. Since market speed fluctuates throughout the session, fixed settings like a 150-tick chart can be misleading. Instead, the indicator adjusts the optimal brick size in real time to reflect these changes, allowing for more accurate trading aligned with current market conditions.

02:13

The optimal brick size is reviewed and updated regularly, approximately every 5 to 10 minutes on fast timeframes, to maintain alignment with market speed. As the timeframe slows (e.g., from 32 seconds to 1 minute), the optimal Renko brick size increases accordingly. This adjustment ensures that slower timeframes correspond to larger brick sizes, maintaining consistency with market movement.

03:10

Traders have the option to manually set their own brick size, but it is recommended to use the optimal brick size provided by the indicator. Using the optimal size ensures trading at the market’s current speed, reducing guesswork and improving accuracy. The approach is similar to using traditional timeframes, focusing on volume and price analysis for effective trading decisions.

03:36

Volume and price analysis reveals market weakness

03:36

The discussion focuses on analyzing market volume and price behavior to gauge market strength. It highlights how rising prices with falling volume and narrowing spreads signal a weakening market that may soon pause or reverse. Traders are advised to monitor these signs closely and consider scaling out of positions when the market shows weakness. The market is currently expected to congest around the volume point of control, with resistance and support levels influencing price movement.

05:18

The speaker reviews short-term charts (15-second and 30-second) to illustrate market signals, including a notable V-shaped rally characterized by a sharp volume spike and rapid price increase. Such rallies are uncommon but should be accepted without regret. The analysis then shifts to testing a support level on the Dallas Hollister chart using the accumulation/distribution indicator, emphasizing its power in identifying key market levels.

06:17

Accumulation distribution levels and resistance

06:17

The speaker explains levels of price resistance, highlighting minor and stronger levels based on how many times they have been tested. A particularly strong resistance level, tested eight times, has recently been breached, which now acts as a significant resistance point. This analysis is shown using the accumulation distribution indicator on NinjaTrader. Additionally, upcoming important events are mentioned, including Fed Chair Powell’s speech scheduled for 7:30 UK time and Clarita’s presentation at 6:00.

07:21

Upcoming Fed Powell and market volatility

07:21

The markets are experiencing heightened volatility due to multiple speaking engagements from key figures, with European markets impacted by bank holidays in France, Germany, Switzerland, and Italy. The speaker switches to time-based charts to illustrate the volatility, highlighting sudden price movements caused by statements from officials like Clarita and Williams. This environment is challenging for regular traders but beneficial for large market operators.

08:37

Using five-minute charts, the speaker analyzes volume and price resistance levels, noting strong clusters that may influence market direction. Currently trading near the volume point of control, the market is expected to oscillate without strong directional moves. Volume drops below certain levels make downward moves less likely, while significant effort would be needed to break resistance to the upside. The session is marked by trapping and volatility, favoring market makers.

09:34

The speaker reviews three key indices—the Dow, Nasdaq, and S&P 500—referred to as the ‘three sisters,’ on five-minute and daily charts. All show similar patterns with clear volume points of control and overhead resistance zones, suggesting a likely period of oscillation until Federal Reserve Chair Powell’s upcoming remarks. This period is not suitable for trend trading but may offer scalp trading opportunities. During such volatile times, traders should focus on very short timeframes to manage risk effectively.

11:19

Trading fast timeframes for volatile markets

11:19

The speaker discusses trading on very short timeframes, such as sub-minute charts, which involve quick entry and exit trades. This style may not suit novice traders or some experienced traders due to the fast pace and constant market movement. Successful scalping in congested markets requires rapid execution and automation, including quick stop-loss management, as trades happen rapidly and frequently.

12:17

Trading on fast timeframes demands automated, fixed stop-loss strategies without hesitation or debate. The speaker recalls starting with this method 21 years ago in footsie futures, using a fixed five-point stop-loss and executing trades swiftly by phone. This approach involves continuous in-and-out trading throughout the day, emphasizing speed and discipline.

13:11

The process of rapid trading is described further, highlighting the repetitive cycle of entering and exiting positions efficiently. The speaker notes monitoring volatility triggers and market reversals on short intervals like the 2-minute chart to confirm conditions before trading, especially during congestion periods, ensuring strategic and timely trade decisions.

14:04

Interactive Brokers tick volume data limitations

14:04

The speaker explains that Interactive Brokers does not provide historic tick volume data despite holding it, which is a known limitation. Users can only access tick volume in real time if they keep a chart open, but there is no historical tick volume database available.

14:46

Interactive Brokers is primarily a discount broker, not a data feed provider, which explains its limited charting and data services. The workaround suggested is to keep charts open during the day to capture real-time data, though the platform’s charting capabilities are acknowledged to be poor compared to specialized charting tools.

15:16

It is emphasized that Interactive Brokers is not designed to be a charting or data feed provider, and most traders use other charting applications for analysis. The only practical solution for using IB data is to rely on faster chart updates, which is ineffective for slower charts.

15:48

An alternative mentioned is trading futures, where live volume data is available and reliable, although futures markets cover a more limited range of pairs, mainly majors. This highlights the volume data issue with Interactive Brokers and the constraints of their platform.

16:28

The discussion shifts to TradeStation, where two platforms are being developed: TradeStation Global, which uses Interactive Brokers’ feed (versions 9.5 and 10), and TradeStation Securities, the US version. TradeStation Global users with IB accounts can trade through TradeStation but face volume data limitations.

17:06

TradeStation 10 uses its own data feed, providing full volume data on its platform since TradeStation acts as both data provider and broker. This setup resolves the volume data issue seen with Interactive Brokers. The segment ends with a brief comment about the current market being choppy and stagnant.

18:13

Market congestion and scalping strategies

18:13

The market is experiencing significant volatility with trading centered around the volume point of control, indicating heavy volume and congestion. This environment suggests limited trading opportunities except for very sharp scalping moves. A quick shift in focus to gold reveals a similar pattern of market congestion, reinforcing the overall cautious trading conditions.

19:20

Gold and currency indices update

19:20

The speaker discusses the recent price movements in silver, noting a price waterfall and volatility leading to a market rally that only reached the volume point of control. The future direction depends on upcoming comments from Mr. Powell and the behavior of the dollar. Currency indices are examined, showing the yen and dollar both starting to decline on five-minute charts, which could signal a potential commodity rally if the dollar continues to weaken.

20:21

There has been a strong correlation between the dollar and yen over the past few hours, with both currencies moving closely together. Recently, the yen has begun to weaken slightly on faster timeframes, indicating possible upcoming shifts in the market. The speaker also looks at the VIX index on the daily chart, observing it trading within a narrow range with no strong downward trend, though it has shown some short-term rallies and pullbacks since April into May.

21:23

VIX and market trend before Powell announcement

21:23

The market is showing strong momentum overall but remains indecisive intraday, with the index moving within a tight range and exhibiting a lot of chop. No significant moves are expected until after Mr. Powell’s comments, which are likely to trigger volatility and a potential breakout confirmed by volume. The team also mentioned progress on launching two trading platforms, TradeStation expected within the next two months.

22:24

Trading continues in a narrow range with prices fluctuating slightly while awaiting upcoming market events. Volume is expected to flatten and price spreads to narrow as the market remains on hold until the next session. The segment concludes by directing viewers to quantumtrading.com for more details on the indicators discussed.

22:58

Quantum Trading indicators and education program

22:58

The speaker discusses the availability of trading tools for MT Form 5 Ninja Trading and TradingView, mentioning a recent significant upgrade to TradingView’s programming language. They express hope to develop more indicators for TradingView soon. Additionally, they mention ongoing work on TradeStation integration, expected to be completed in the coming weeks. The comprehensive education program offered at quantumtrainingeducation.com is highlighted, featuring a 7-day money-back guarantee and a strong track record of student satisfaction.

23:57

The trading community includes a supportive private forum called The Trading Floor, where the hosts actively participate daily. The forum is described as friendly and productive, with traders achieving impressive returns. The speaker also notes that all their books are available on Amazon in both paperback and Kindle formats. They conclude by thanking viewers for attending, encouraging continued learning, and inviting questions via email.

24:54

The speaker provides contact information for any further questions and wishes the audience well, reminding them of the next session scheduled for Tuesday at 7:45 UK time. They close by encouraging safety and enjoyment in trading during challenging times.

By Anna Coulling – creator of volume price analysis