money line trend indicator - jimcooper.biz trend indicator... · some use the adx for trend...

Enhanced Indicator for Tradestation Invented by TraderAbe (TCnet)

programmed and documented by

Jim Cooper w2jc

"Money Line"

Trend

Indicator

w2jc

Draft

Money_Line™ Trend Indicator for Tradestation

Last Revision: 2015-05-15 at 20:39 of 15

Table of Contents

Enhanced Indicator for Tradestation ............................................................................................................ 1

"Money Line" Trend Indicator ...................................................................................................................... 1

Table of Contents .......................................................................................................................................... 2

Enhanced Indicator for Tradestation Charts ................................................................................................. 3

Money_Line Trend Indicator ......................................................................................................................... 3

Introduction .............................................................................................................................................. 3

Using Money_Line with Tradestation ........................................................................................................... 4

Background ............................................................................................................................................... 4

Installation ................................................................................................................................................ 4

Interpreting the Money Line™ Indicator................................................................................................... 7

Using the MoneyLine™ Indicator in Radar Screen ............................................................................... 9



Enhanced Indicator for Tradestation Charts

Money_Line™ Trend Indicator

Introduction

This shows the Money_Line Trend Indicator (bottom) compared with the MACD (center).

.

Determining the current trend of a chart, regardless of what time frame you are

using, is very important to determine when to enter and exit trading positions.

Many indicators have been developed over the years which try to display the current trend. Probably

the simplest determining the slope of a fairly long moving average (such as 20-bar or 50-bar). Some use

the crossover or position of a faster vs. a slower moving average. Some use a Linear Regression line.

Some use the MACD (Moving Average Convergence Divergence). Some use the ADX for trend strength

and +/- DMI for trend direction.

The Money_Line Trend Indicator is unique because it presents a very "clean" easy-to-interpret chart

display. It uses one criteria to detect an uptrend and one criteria to detect a downtrend; it accumulates

uptrend counts (one per bar) and subtracts downtrend counts (one per bar) which results in a very nice,

gradual indicator line. During periods of "chop" the line tends to flatten, thus warning of coming trend

reversal.

A Bollinger Band is added to the indicator line, and the relationship between the indicator line and the

Bollinger Band boundary is used to determine the current trend. If the line is above the upper BB band

the trend is up; if the line is below the lower BB band the trend is down; if the line is inside the BB, the

trend is "choppy" and should not be traded.



Using Money_Line with Tradestation

Background

This indicator was developed in Worden's Telechart TC2000, version 12 because that charting package

offers a "Cumulative Indicator" -- which is just what is needed for this concept. The concept for the

Money_Line Trend Indicator is similar to that of the OBV On-Board Volume indicator.

Tradestation has no "standard" cumulative indicator -- any non-standard indicators must have EZ

Language coding written for them. This indicator was written for Tradestation to conform with the

parameters originally used in Telechart v12.

Installation

Installation of the Money_Line Trend Indicator in Tradestation can be done using the

w2jc_MONEY_LINE_TREND_INDICATOR.ELD install file, which you will receive after purchasing

the indicator.

Note:

It is anticipated that you already know how to do basic computer commands and basic

Tradestation functions. You should know how to save files, copy files, move files and find files on

your computer, and how to make New Folders. If you do not know how to do these basic

functions, it is strongly suggested that you contact your local library or Adult Education center to

learn these basics. On request, TSindicators.info will arrange to step you through the

installation and setup procedures.

Using Windows Explorer, locate the Tradestation program folders, usually located at --

C:\Program Files (x86)\TradeStation 9.1

Now check to see if you have a folder named Import -- if not, create a New Folder and name it Import.

Save the w2jc_MONEY_LINE_TREND_INDICATOR.ELD install file in the Import folder at

C:\Program Files (x86)\TradeStation 9.1\Import

Open your Tradestation program and log into your account. At least one Desktop should be open.

At the top left of the Tradestation desktop window, click* once on the File tab;

a drop-down menu list should appear.

Click once on the line marked Import/Export EasyLanguage... a window should appear labeled

Import/Export Wizard

Select** the second line down, labeled Import EasyLanguage file (ELD, ELS or ELA)

* When the term click is used in this document, it means "left click once" on the target.

** When the term select is used in this document, it means "left click once" on the target -

after which the target item should become highlighted.



Click on the [ Next > ] button at the bottom right of the Import/Export Wizard window.

A window labeled Import Wizard should now open. Click the [ Browse... ] button and locate the folder

C:\Program Files (x86)\TradeStation 9.1\Import

In that folder, find the w2jc_MONEY_LINE_TREND_INDICATOR.ELD file which you previously saved.

Left double-click on the file name, and the full path to the .ELD file should appear in the white window.

Click the [ Next > ] button to continue.

A new window labeled Import Wizard should appear, with a check mark to the left of "Indicator" ;

click the [ Next > ] button to continue.



The Import Wizard window should now show a check mark in the box on left of the name of each

"Available Analysis Techniques" contained in the .ELD install file.

Click the [ Finish ] button at the bottom to continue.

Note:

If you are installing an update/upgrade of an existing indicator, you might get a warning window like

that shown below --

If you are sure that you want to replace the existing indicator then click the [ Yes to all ] button.

If you see a small window like the one below, you have successfully installed the new indicator!



Interpreting the Money Line™ Indicator

Once you have the indicator installed on your chart, you will see how easy it is to interpret it!

Remember:

no indicator should be used all by itself; it is when

several of them send the same message that you

pay attention.

There are four conditions which the MoneyLine™ indicator detects:

green UP Trend

red DOWN Trend

dark green NO Trend

yellow Possible Trend Reversal



If your other indicators confirm, then you would want to be Long when the dots are green;

If your other indicators confirm, then you would want to be Short (or out) when the dots are red;.

When the dots are dark green, you should not start a new position; however, if you are now in a

position and the dots are dark green you should watch carefully and protect your profit.

When the dots are yellow, it means that the ML indicator has detected neither an up trend nor a down

trend (this happens during 'consolidation' and 'chop' conditions). These yellow dots often, but not

always, warn of a pending reversal of the trend. Watch to see what color the next dot after the yellow

shows; if it is the same color as the dots before the yellow, then the previous trend is continuing -- if the

next dot after the yellow is different from the dot before the yellows, then the trend is beginning to

reverse.

Here is an example --

If you want to see the current dot color change "intra-bar" (before the next bar starts) you can click the

box in the Format Indicator / General page, as shown below --



Using the MoneyLine™ Indicator in Radar Screen

Note: you must be subscribed to the Radar Screen option in your

Tradestation account, or you will not be able to display indicator results.

Here is a typical Radar Screen display of the MoneyLine™ results --

The results are sorted "downward" so that "2" is at the top and "-1" is at the bottom.

To install the ML in Radar Screen, open Radar Screen to a blank tab;

in an open non-grid area, RIGHT CLICK and in the pop-up menu select "Format All Analysis Techniques"

(if you right click in a grid area, you will get a different pop-up menu).



You should now see a large pop-up window with two selection areas, left and right.

On the right side you will see listed all the information that is already in your Radar Screen grid;

on the left side you will see all the Indicators and Analysis Techniques that are available on your system.

On the left side, locate w2jc_Money_Line_Trend_Indicator and left-click once to select (highlight) it;

On the right side, left-click once on the top item of the list; now left-click once on the [Add ->] button

in the center section. The Money_Line Trend Indicator name should now move from the left list to the

right list.

While you have this menu window open, you can arrange the items in the right side the way you would

like them to appear in the Radar Screen grid. Do this by selecting (left click once) a name and clicking

either the [Move Up] or the [Move Down] button until that item is in the desired position. If you want

to remove an item from the right side (the Radar Screen grid) then select the name and left click on the

[ <- Remove] button in the center area.

Before leaving this setup window, the Money_Line Trend Indicator 'status' column can be formatted. Do

this by right click once on the Money_Line Trend Indicator name in the right side, then click on the

[Format] button at the bottom right. In the pop-up window, click on the Style tab at the top. You should

now see a window with two vertical lists. On the left, select 'status' at the bottom of the list and make

the other selections shown by arrows in the image below --



This will set up the 'status' column in the Radar Screen to show an integer (no decimal places) centered

in the column. Now click on the Color tab at the top of the window and select 'status' at the bottom of

the list. At the top right, in the "Foreground Color" area, click on the black box at the top left of the color

samples. No setting for "Background Color" is required, as this is controlled by the software code. Be

sure that the box at the left of "Override any color settings...." has NO check mark; if there is a check

mark showing, left click once on the box to make the check mark disappear.



Now click the [OK] button at the bottom of the Format Indicator window to finish the setup.

You should now be back at the Format Analysis Technique window, with the left and right lists.

When you are satisfied with the arrangement in the right window, click the [OK] button at bottom right.

In the top right cell of the Radar Screen, under Symbol, type in a ticker symbol -- such as IYT.

If our insert procedure has worked correctly, you should now see six columns for the Money_Line Trend

Indicator to the right of the IYT symbol, with various values in each column. We need only ONE column

from the Money_Line Trend Indicator so the next step will remove the other five columns from the

display.

1. In the very top title area for the Money_Line Trend Indicator, which spans six columns, right

click once; this should bring up a pop-up window as shown below --



2. Move your mouse over the second line down in this menu (Show/Hide Plots) and then carefully

move your mouse (no clicks) to the right and into the second drop-down menu (with six items).

Click once on the top item (PLOT1). Both menus will vanish.

3. Repeat steps 1 and 2 for each of the five top items in the small menu; do NOT click on 'status'.

4. Now there should be only one column visible under the Money_Line Trend Indicator header.

The Money_Line Trend Indicator has now been successfully installed in the Radar Screen. You can now

add additional tickers, or ticker lists, in the Radar Screen.

In the example below, we have inserted the tickers for the Dow Jones Transportation Index.



Next to each ticker you can see the color and value of the Money_Line Trend Indicator 'status' flag - the

colors match those described for the chart indicator. Black replaces the Dark Green from the chart

indicator.

If you prefer to have all the tickers with the same status value grouped together, just left double-click in

the 'status' area of the header for that column. If the red -1 cells appear at the top of the list, then left

double-click again and the yellow 2 cells should be at the top. The yellow cells are the tickers where

the trend is LIKELY to be changing.

For our example, the Radar Screen would now look like this --

money line trend indicator - jimcooper.biz trend indicator... · some use the adx for trend...

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