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Freedom of Movement (NT)
- Categories: Indicator, NinjaTrader
- Tags: Oscillator
- Type: Free
The Freedom of Movement indicator for NinjaTrader is part of first of a dual indicator setup that helps determine support and resistance lines.
Note: This download requires NinjaTrader 8 release 8.1.3 or newer.
Introduction to Freedom of Movement Indicator
Introduced by Melvin E Dickover, the Freedom of Movement indicator for NinjaTrader is part of first of a dual indicator setup that helps determine support and resistance lines. The indicator factors in price and volume detecting points where price movement is restricted. This is of course, utilized along with the Relative Volume Standard Deviation indicator. For reference, when such points are identified, they are marked as Defended Price Lines (DPLs).
The following is quoted from the ThinkOrSwim site:
" DPLs can be drawn using the Price Level drawing. Suggestions for placing these lines are the same as for the Relative Volume StDev:
- Overlapping bars. If the indicator spike corresponds to a price bar overlapping the previous one, the previous close can be used as the DPL value.
- Very large bars. If the indicator spike corresponds to a price bar of a large size, use its close price as the DPL value.
- Gapping bars. If the indicator spike corresponds to a price bar gapping from the previous bar, the DPL value will depend on the gap size. Small gaps can be ignored: the author suggests using the previous close as the DPL value. When the gap is big, the close of the latter bar is used instead.
- Clustering spikes. If the indicator spikes come in clusters, use the extreme close or open price of the bar corresponding to the last or next to last spike in cluster.
Clustering spikes provide the strongest DPLs while isolated spikes can be used to confirm and refine those provided by the Relative Volume StDev. Coincidence of spikes of the two indicators can be considered a sign of greater strength of the DPL."
Key Features of the Freedom of Movement Indicator
- Averaging Methods: All internal averaging methods can be customized by the user. The user is no longer restricted to simple moving average.
- Deviation Line: The user can set the standard deviation line as desired.
- Negative Values: Even though this is not needed, the user has the option to display negative values.
- User Interface: All color can be customized by the user.
Review the screenshots and video for setup options.
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