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Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

Introduction to Higher High Lower Low Stochastic

Introduced by Vitali Apirine,, The Higher High Lower Low Stochastic for NinjaTrader (HHLLS) is a momentum study. This study consists of two stochastic lines. The primary purpose of HHLLS is to recognize trend behavior. Traders use this indicator to identify well-known signals such as divergences, crossovers, and overbought/oversold conditions.

Utilizing the HHLLS Indicator

Divergences

Divergences between price and HHLLS plots can help recognize trend reversals or corrections:

• Bearish Divergence: Occurs when the price trends upward but the HHS fails to confirm this move.
• Bullish Divergence: Occurs when the price makes a new low, but the LLS rises.

Divergences may require additional confirmation. A signal is stronger when one line forms a divergence and the other crosses above the 50 level.

Trend

The behavior of HH Stochastic and LL Stochastic plots in relation to each other provides valuable insights:

• Uptrend Indication: When HH Stochastic is rising while LL Stochastic is making new lows, the price may be entering an uptrend.
• Downtrend Indication: When LL Stochastic is rising while HH Stochastic is making new highs, the price may be entering a downtrend. 

Crossovers

Crossovers of the HH Stochastic and LL Stochastic lines can indicate important trading signals. When the HH Stochastic crosses above the LL Stochastic, it may signal a buying opportunity, while a crossover below the LL Stochastic may signal a selling opportunity.

Key Features of the Higher High Lower Low Stochastic

1. • Averaging Methods: The study contains a multitude of averaging methods that could be utilized by the trader. This feature allows for extreme flexibility. The available averaging methods are: Simple, Exponential, Weighted, Hull, Volume Weighted, Triangular, Tripple Exponential, Wilders, ALMA, AEMA, and FRAMA
   • Custom Limits: The user can pre-set the overbought and oversold limits along with the signal line limit. This is necessary since the signal line may become more relevant when it comes to where it is placed based on the adaptive moving average method being utilized.
   • User Interface: The interface is very flexible allowing for custom coloring at any extreme and also the application of a shade to help in identifying trends.

Review the screenshots and video for setup options.

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