02/09/2023 |
TrendSpider Software Update: New Indicators Added
Hello, traders, and welcome to another software update. We have added three new indicators to the platform, Intraday Intensity Index, Anchored Chandelier Stop (long and short), and Anchored Trailing Stop (long and short). Let’s dig into the details below.
Intraday Intensity Index
Developed by Dave Bostian, the Intraday Intensity Index is utilized by traders to help determine how the activity of institutional participants is affecting a stock’s price. The indicator uses the below calculation, taking into account both the previous day’s close as well as the intraday high, low, and volume.
(Close x 2) – High – Low / (High – Low) x Volume
Due to the nature of this calculation, when intraday highs and lows move above the previous closing price, particularly if there’s a lot of volume associated with the move, the indicator will head sharply in the negative direction. As well, since it’s known that high volume is often associated with institutional trades, it can also be used as a means for tracking how institutional participation is influencing price.
This indicator populates as a lower indicator at the bottom of your chart view. There are several editable criteria that can be accessed by clicking the three dots next to the indicator title.
Like most other indicators, the Intraday Intensity Index is not meant to be used in isolation, but rather, in conjunction with an indicator like Bollinger Bands, or other envelope channels.
Anchored Chandelier Stop
The Anchored Chandelier Stop indicator is a new take on the Chandelier Exit indicator. Instead of the normal Chandelier Exit you’re used to, the Anchored Chandelier Stop can be anchored from any specific candle by simply right-clicking on the candle of choice and selecting the desired option. When you right-click on a candle, the below list of options will appear.
If ‘Chandelier Stop Long Anchored’ is chosen, a long-biased Chandelier Stop will appear below the candle it was anchored to and it will follow the price as new candles are formed. The equal and opposite are true for the ‘Chandelier Stop Short’ option. Selecting this option will create a Chandelier exit above the candle on which it was anchored and it will track the price as new candles are formed.
After you’ve manually anchored the Chandelier exit of choice, you can right-click the line and choose ‘Properties’ to edit the criteria that define the stop. For a tighter stop, a trader can decrease the ATR factor or length. For a looser stop, these values can be increased.
You’ll also note in the above image the ‘Anchor To’ drop-down menu. Just like all other anchored indicators on the TrendSpider platform, traders can choose to automatically anchor the Chandelier Stop Long/Short to important candles like the ‘Highest High’, ‘Lowest Low’, ‘Highest Volume’ and more.
Anchored Trailing Stop
Similar to the Anchored Chandelier Stops highlighted above, the Anchored Trailing Stop can be added both manually, via right-clicking on a candle of choice, or to any number of important ‘Anchor to’ criteria. Like a standard trailing stop, traders can choose to trail the price via a predefined percentage loss value. In addition, a ‘band type’ can be chosen to define an area around the trailing stop line. The band types available include ATR, Standard Deviation, and Constant.
Just like a traditional percentage loss trailing stop, the stop value chosen will be measured off the highest high or lowest low in a series of candles. The default percentage loss value is preset to 1.5%. For looser trailing stops, try increasing that value, and for tighter stops, decrease that value. In the image below, both Anchored Trailing Stops were created with a 10% stop loss.
In addition, alerts can be placed on Anchored Trailing Stops by simply right-clicking on the stop and choosing the ‘Create alert at this line’ option.
As always, we hope you find these new indicators helpful! If you have any questions, do feel free to reach out to our support team via the ‘Contact Us’ button in the bottom right-hand corner of your charts!
