Favorable Direction
Long or Short bias based on Vinny's 1st Order of Operations
The Favorable Direction indicator is a simple yet powerful tool designed to provide AlgoBox™ traders with a quick visual cue on market sentiment relative to the current day’s open.
It displays a red banner with the message “AlgoBox Bias SHORTS FAVORABLE” when price action is trading below the daily open line, suggesting potential downward bias.
Conversely, when price is above the open line, a green banner reading “AlgoBox Bias LONGS FAVORABLE” appears, indicating current and/or potential upward bias. This at-a-glance directional context can be useful for aligning trades with broader intraday trends.
One important characteristic of the Favorable Direction indicator is its increased reliability during the afternoon session. Early in the trading day, price can often whipsaw around the open, leading to less consistent directional signals. As the trading day progresses and more institutional flow defines the market's trajectory, the indicator tends to become more meaningful. This makes it particularly useful for traders who focus on midday to late-session setups, where directional conviction typically strengthens.
It's crucial to note that this indicator is not a standalone signal or guaranteed predictor of market movement. It simply reflects directional bias relative to the open price and should be used in conjunction with other tools in the AlgoBox™ system.
Traders are encouraged to pair this with Real Time Order Flow Analysis tools, Auto Harmonics, and other confluence factors for more robust trade setups, as explained in the Order of Operations. Use Favorable Direction as a contextual layer, not as a trigger—smart usage lies in understanding its strengths and limitations.
Favorable Direction Settings
The Favorable Direction indicator once configured to a chart is merged with the indicator named "Secondary Ripple entry Chart for Medium to Large Targets 1 & 2 Runners"
1. Calculations
Allows you to control how frequently the Favorable Direction indicator recalculates. The Calculation sets the frequency of these calculation cycles. Customization allows for greater control over data update rates.
Calc Override: Default setting is unchecked. Check this setting to customize and utilize Calc Interval.
Calc Interval: Set your custom desired calculation interval. The smaller the number, the more frequently the indicator will recalculate, which increases processing load on your system's CPU. The default setting of 1000 is in milliseconds, which is equal to 1 second. If you wanted the Favorable Direction indicator to calculate every half second (twice as fast as default 1000ms), then you would enter 500 in this field.
2. Location
Allows you to customize the display location of the indicator on the chart between Bottom Left, Bottom Right, Top Left and Top Right.
3. Data Series
Displays the current chart instrument, contract date and configurations applied.
Input Series: This setting determines which chart the indicator is displayed on, linking the indicator to the selected chart data.
4. Setup
Allows you to add a label, set the maximum bars to look back, and configure calculations based On Price Change, On Bar Close, or On Each Tick.
On Price Change: Updates the indicator only when there is a change in the instrument's price.
On Bar Close: Updates whenever a new bar closes, recalculating based on the finalized bar data to reflect the latest market conditions and changes in trends. Be mindful of whether you are using AlgoBars or range bars. This is the default setting for this indicator.
On Each Tick: Updates with every price change or tick in the market, providing real-time adjustments and reflecting the most current data. This is the most CPU intensive setting.
5. Visual
Allows you to customize button colors, adjust the button placement, and modify the font type and size to suit your preferences. The Visual Settings shown are default settings which usually do not need to be changed unless specified in release notes or instructional video, live stream or on Discord etc. Auto scale is recommended to be unchecked.
Auto Scale: Automatically adjusts the indicator’s scale to fit within the chart’s price axis, ensuring it’s properly visible without manual adjustments.
Displacement: Shifts the indicator's plot forward or backward on the time axis. This setting is useful for aligning the indicator with price bars or other chart elements, especially in cases where you want to visualize future or past data relative to the current price.
Display in Data Box: Determines whether the values are shown in the Data Box, which is an on-screen display that provides detailed information about the current values when you hover over or click on the chart.
Panel: Specifies which panel or sub-panel the indicator is displayed in on the chart. Indicators can be placed in separate panels above or below the main price chart, allowing for organized and uncluttered visualization of multiple indicators.
Price Markers: Controls the display of markers or symbols on the price axis associated with the indicator's values. This setting helps highlight specific price levels or events directly on the price chart for better visibility and analysis.
Scale Justification: Determines where the indicator is positioned on the price scale, such as to the right or left side of the chart.
Visible: Toggles the overall visibility of the indicator, allowing you to hide or show it on the chart as needed.
All settings displayed in the settings image are the current default configurations provided by NinjaTrader and/or the AlgoBox™ Pro software, and may change at any time in future software updates without notice.
Video Tutorial: Favorable Direction
Only available on AlgoBox™ for NinjaTrader 8. Try AlgoBox™ for free today.
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