Speedometer & Psychology Module

Objectively Quantifying Market Speed & "Feel"

The AlgoBox™ Speedometer is an industry-first indicator that measures the speed of the market. This is made possible with AlgoBars which remove the time element from charts. The AlgoBox™ Speedometer module displays both the average and current Bars Per Minute (BPM), giving you a gauge of the market speed at a glance.

The AlgoBox™ Speedometer Psychology Module: B-Background / O-Overlay / T-Text options.

After some practice, you may become accustomed to certain speed ranges that favor your own trading style, which you can then program into the settings of the AlgoBox™ Speedometer indicator.

Psychology Module with the O-Overlay option toggled 'ON' marks an unmistakable blue ' X ' on across the chart.

The background color is user customizable. You can even use a custom image.

Psychology Module with the B-Background option toggled 'ON' turning the chart background red so you cannot miss it.

Any time the market is moving at a pace outside of your ideal speed range, the Psychology module will instantly display the visual alerts you've chosen.

Psychology Module with the T-Text option toggled 'ON' showing the "Do Not Trade" text at the bottom right of the chart.

With 3 different options, you have a total of 7 possible combinations of settings for variety and customized alerts.

Psychology Module with all B-O-T options toggled 'ON'.

How The Speedometer Can Help

"Knowing when NOT to trade can often be more important than knowing when to trade." -Anonymous

After you've determined a general idea of your ideal market speed ranges for the different instruments and their AlgoBar size charts that you prefer, the Speedometer can assist your trading analysis by quantifying the feel of the market so you can decide to avoid or trade a certain instrument, or AlgoBar chart size.

When the market is moving too fast for you, you have the option of "gear shifting" to a bigger numbered AlgoBar chart.

Note that ATM settings should be reconsidered when gear shifting, as larger charts may require larger stop losses and targets, providing potentially more risk but also potentially more reward, and vice versa, when gear shifting down to a smaller AlgoBar chart for more speed/volatility.

Visualizing the Gear Shifting tactic. The bigger the AlgoBar number, the slower the market will feel. This is similar to how a larger gear in a car's transmission makes less rotations compared to a smaller gear, with the same distance traveled.

Gear shift to your desire to find the speed and instrument that works for your trading.

During extremely volatile market times, it's common for some instruments to move too fast to trade at all, such as the NQ futures. In this case, the Gear Shifting tactic is applied to instruments - you may consider analyzing YM instead of NQ. If YM is still too fast, then RTY may offer a chart speed that suits you. If even RTY is too fast, you may opt to take a look at the ES.

Similar concept to how we gear shift AlgoBars, we are also able to gear shift instruments, as they usually can move at different speeds.

Gear Shifting instruments is not limited to NY, YM, RTY, & ES. There are many other instruments available, such as crude oil, gold, FDAX, currencies, etc.

Tip: Know the tick value for each instrument you trade so you can assess your risk and size your position properly.

Video Tutorial

WATCH: Vinny E. Mini explains the AlgoBox™ Speedometer and how to use it, in this video tutorial.

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Only available on AlgoBox™ for NinjaTrader 8. Try AlgoBox™ for free today.

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