How To Use The Indicators for Stock Trading and Investing

How to use the Quantum Trading indicators for both stock trading and investing as part of the complete stock trading and investing program.

While it is a straightforward indicator that delivers a signal based on a three-candle pattern, it’s more than simply an indicator to reveal short-term changes in sentiment, and used in the way he explains, helps to determine the start and end of congestion phases as well as the confirmation of trends.

The dynamic volatility indicator is a powerful indicator that reveals instantly when the price action has moved outside the average true range. What follows is likely to be a reversal or congestion since volatility is generally associated with the market makers and, hence, the fear of missing out or FOMO.

The trends indicator is a sister indicator to the trend monitor, with both indicators developed to give you a clear and precise view of changes in a trend, whether slowing into congestion or reversing. In addition, and as a key ingredient, the trend indicators were developed to help you stay in a trend once you have a position in the market, which is the hardest thing to do in trading.

The trend monitor is the sister indicator to the trends indicator and is designed to work in tandem. The trends work very closely to the market price action, while the trend monitor considers changes in trend over a longer period, and therefore, they provide the perfect blend of shorter and longer-term perspectives on trends that are weakening, trends that are reversing, and trends that are strengthening.

In this lesson, David explains how to use the indicator and, most importantly, in multiple timeframes.

In this lesson, David explains the principles of the VPOC indicator, the importance of the VPOC itself, and how to interpret the volume histogram in terms of high-volume and low-volume nodes, and what this means in terms of support and resistance.

In this lesson David walks you through the accumulation & distribution Indicator, which delivers, in a clear, intuitive, and colorful way, those key levels of price support or resistance across all the timeframes.

This is another powerful indicator in the suite of tools that delivers pinpoint levels at which price is likely to find support or resistance, and of course, as always is used in conjunction with our volume price analysis methodology to confirm such points.

In this lesson, we take a look at the accumulation & distribution Indicator in action across the platforms, but as always, it works in the same way whichever platform you are using.

The unique aspect of the indicator is in the levels, which thicken each time they are tested and repelled, and so give a visual and instant view of those strong levels up and down the chart, along with those which are less significant. However, always remember that clusters are importance, which David explains in this lesson.

As the name suggests, the live camarilla levels indicator is all about levels and developed from the pit where floor traders used pivots to highlight potential areas where the price was likely to reverse.

The indicator uses 6 levels from R6 to S6, and each, of course, is significant but in different ways, which David explains in this introductory lesson.

In this lesson, David explains the key concepts of reversal and breakout trading using the camarilla levels Indicator. 

As you would expect, the indicator works in all timeframes and all instruments, and in addition, delivers the signals and messages for you directly on the screen, but you can of course, switch this off if preferred. 

In this lesson, David covers the camarilla levels indicator across the platforms and shows you how to use it in multiple timeframes, as well as the messages and signals which are delivered as part of the indicator.

As always, we use it in conjunction with our volume price analysis methodology.

In this lesson, David explains how and why we developed the tick speedometer indicator and how to use it in multiple timeframes. While it was originally developed as an application for tick charts, we have since developed other ways to use it for day trading stocks on time charts.

The renko optimizer is a unique indicator we developed in order to help traders select the optimal setting for non-time-based charts such as renko. Where we use non-time-based charts such as renko and tick charts, the primary issue is knowing what setting to use for the chart, and this is where the indicator steps in to deliver this automatically for us and for all instruments and markets.

In this lesson, David explains how to use the indicator in multiple timeframes and why non-time-based charts are so different to time-based charts.

Volume lies at the heart of everything we do and is the foundation methodology for the stock trading and investing program also, so it is no surprise to see we have included the volume indicator here!

This is not a lesson on VPA, of which there are many in the program, but simply how to set up and use the indicator across the platforms, as well as taking a look at this in the context of extended trading hours.

In this lesson, we briefly examine extended trading hours on the MT4 and MT5 platforms. Changes are taking place all the time in the markets and also with brokers and while these may not be widely available at present, in the future we are likely to see both pre and post-markets covered on the platform.

The VWAP indicator, which stands for volume-weighted average price indicator, is another of our key volume indicators in the suite of tools for the stock trading and investing program, and if you are not familiar with this indicator, this lesson explains both how and why it is important.

Indeed, for many stock traders and investors, it is the ‘go to’ volume indicator, and as you will see from this lesson, not only have we created one indicator, but actually five variations, so you have a complete selection to choose from and match your own personal preferences.

In this lesson, David shows you some of the basic principles of the VWAP indicator and the importance of the upper and lower envelopes.

The indicator variants we have developed work across all timeframes from the fastest to the slowest so it is not simply a day trading tool but one which has much wider applications.

In the next group of lessons, David focuses on a variety of examples from the various markets and across the platforms.

Here we take a look at the VWAP in action on NinjaTrader and for Apple.

Following on from the previous lesson on the VWAP and Apple on NinjaTrader, in this lesson, David explains the concepts and principles of where and how to get in using the indicator.

Many traders simply use the crossing of the VWAP as the trigger. We do not, as we have volume price analysis to assist us and give us those all-important signals of confirmation of potential reversal points and therefore, the confidence to get in at the right time.

In this lesson on the volume-weighted average price indicator, we stay with the NinjaTrader platform and move on to look at an index, in this case, the Dow Jones.

The VWAP indicator is used in precisely the same way whatever the market or instrument, and in multiple timeframes, all underpinned with volume price analysis which helps us to get in, stay in, and get out at the right time.

In this lesson on how to use the VWAP indicator, we move to another stock, which in this case is Walgreens Boots.

But as always, we never use the indicator in isolation, but with volume price analysis and across multiple timeframes.

Another example in this series of lessons, and in this case, David shows you the  VWAP indicator in action on another stock, which in this case is Microsoft.

But as always, we never use the indicator in isolation, but with volume price analysis and across multiple timeframes.

In this example, we move on to another instrument, and in this case it’s index futures on NinjaTrader using the VWAP indicator.

As you will see in this lesson, the VWAP works in the same way across both instruments and markets, and all supported by our volume price analysis methodology.

This lesson is a little different as we are in the pre-market here for Tesla, a stock I’m sure you know well.

Here again, we are on NinjaTrader and an example of how the VWAP works across the timeframes, including both the pre and post-market periods, with the VWAP starting as soon as the session gets underway. David recorded this lesson simply to show how the indicator works across these periods, which are important times for setting levels of potential highs and lows before the stock opens in the full cash exchange.

It can be a very tricky time to trade due to thin volumes and, therefore only a period for very experienced traders, but nevertheless a useful time for setting levels of potential support and resistance.

Another example of the VWAP indicator in action on the NinjaTrader platform, and in fact this is really a follow-up lesson to an earlier one, where we looked at Tesla in the pre-market.

In this lesson, we have moved on to another platform, but we do urge you to watch all the lessons, even for platforms that are not those you use yourself. The reason for this is simple. The VWAP indicator works in the same way across all the various platforms, so the lessons covered here are universal in what they convey and teach. 

Here, we have moved to TradingView and in this case, we are starting with a well-known stock which is Walmart.

The next example lesson for the VWAP indicator on TradingView is another popular stock, which in this case is Meta.

As with all these examples, using multiple timeframes is key as is applying our volume price analysis methodology to any decision making in terms of entries and exits.

In this lesson, David takes a close look at the VWAP in action on TradingView & McDonalds, another very popular stock.

As always, with all these examples and in everything we teach, volume price analysis is the foundation stone on which everything is built and coupled with multiple timeframes. We then apply our indicators which give us additional perspectives on the price action of which the volume-weighted average price is one.

In this lesson, we remain with stocks, but to a different group entirely, and that’s ETFs, to once again show you that the VWAP indicator works in the same way, whether on a stock or ETF. In addition, we have moved into the world of commodities as David explains the VWAP in action on TradingView and the GLD.

This is an extremely popular and liquid ETF and as you will see works in precisely the same way, with volume price analysis supportive of the indicator across the various timeframes.

This is the last of our lessons where we focus on the VWAP version of the indicator itself on the TradingView platform, and in this case, we are back in the world of futures and the ES Emini Index Future. Remember, there are five variants of the VWAP indicator, and all are included as standard, so you can use all or some of these, which is why we have recorded examples using each.

Remember, the VWAP variant, which is the base indicator, resets at the start of each session and begins its calculations afresh each day.

In this lesson, we move on to focus on the second variant of our VWAP indicator, and this is the MVWAP or moving volume weighted average price. 

Here we have returned to the NinjaTrader platform once more and starting with a popular stock which is Caterpillar. As the name suggests, the MVWAP does just that and acts as a constantly moving average, so it does not reset at the start of each new session but continues on seamlessly across these crossover periods. It is extremely popular for this reason as it allows you to clearly see where the indicator is in relation to the upper and lower envelopes during these periods which can be a little confused with volatility.

In this lesson, David takes another stock on the NinjaTrader platform, and this time, it’s EBAY, to which he applies the MVWAP indicator across multiple timeframes as before.

Remember, unlike the VWAP itself, the MVWAP is a continuous calculation and so the indicator passes seamlessly across the various open and close points on the chart to give a smooth rendition and a constant view of the VWAP in this way. It is one he himself prefers for this reason, as the first 15 or 20 minutes of price action can be confusing when the markets first open, and using this variant provides additional clarity during this phase of price action. 

In this lesson, we stay with the NinjaTrader platform and move away from stocks, well in fact, into ETFs, and in this case, not a stock but a sector, to show you that the indicator works in exactly the same way, whatever the instrument or market.

Here, we focus on the XLE, which is the energy sector. Having the sector ETF running alongside the stock or commodity you may be trading is a great way to have a confirming signal as to whether the market is likely to be moving higher, or lower, or indeed in congestion. This is not to say all stocks will follow the sector, but it does provide an alternative view, particularly if the stock is one of the major constituents of an index.

In this lesson, we move back to the world of index futures, which are hugely popular, and with another example using the MVWAP across multiple timeframes for the YM Emini future on the NinjaTrader platform

Remember that we also now have micro futures, which are one-tenth the size of these larger contracts and a great place to start if index futures are a new market for you.

In this lesson, David takes a slightly different approach in order to help you understand and appreciate the difference between the MVWAP and the VWAP by comparing the two.

Here, he takes two stocks, namely Microsoft and Duke Energy, and compares the two variants of the indicator side by side so you can see how they differ, particularly at the pinch points of the market session open and close. It is an interesting lesson that really makes the point and highlights the key differences between the two versions.

In this lesson, we move on to our next platform, which is TradingView, but do please remember. The indicator works in the same way whatever the platform, so please do study all the lessons, whatever platform you may be using as part of the stock trading and investing program.

Here we have moved back to TradingView and staying with the MVWAP, David takes a closer look at a stock for this example which is Chubb.

In this example, we return to consider the ever-popular stock Tesla using the MVWAP indicator, this time in action on TradingView. 

TradingView makes switching the pre and post-market sessions on and off very easy. In addition, these regions are also clearly shown on the chart along with the price action on the price axis as this unfolds, so you always know exactly what is unfolding both in terms of the chart, which is color-coded, and the price axis.

And from one immensely popular stock, we move to the most heavily traded index and most fluid of all the ETFs, which is of course, the SPY.

In this lesson, David applies the MVWAP to this ETF on the TradingView platform and, as always using multiple timeframes and supported by our volume price analysis methodology.

In this lesson, we return to the world of index futures once more and in this case David has chosen the NQ Emini future on the TradingView platform, where he applies the MVWAP across multiple timeframes.

If index trading is a new market for you, we would suggest starting with the micro index futures, which are one-tenth the size of these contracts, but just as fluid with the same price action and to which you can attach the MVWAP indicator in the same way.

A different lesson here is where David takes the two variants, namely the VWAP and the MVWAP, and compares them side by side using Meta stock as an example.

This reveals how the two versions of the indicator react differently during the session crossover periods of open and closing, as the VWAP starts afresh, while the MVWAP continues seamlessly across these regions, giving a clear continues readout of the VWAP as a result. A very different appearance, as you will see.

In this lesson, we move on once more to consider the third of our VWAP variants, which in this case is the AVWAP indicator, which stands for anchored volume weighted average price, and here we are back on the NinjaTrader platform with Apple stock.

The major difference with the AVWAP is that it can be anchored at any point on the chart, so you have complete control over where the indicator starts its calculations. Generally, this is at a significant high or significant low, which can then be considered an important point at which to drop the AVWAP and start our analysis. It is used in precisely the same way in multiple timeframes and supported with our volume price analysis methodology.

In this lesson, we stay with the AVWAP indicator on the NinjaTrader platform but move on to focus on an ETF, which as we have seen with other lessons, the indicator works in precisely the same way, whether a stock, index, ETF or future.

Here David has selected the XLP which is the sector ETF for consumer staples, in other words those essential goods and services we all need whatever and which come into focus when the economy is moving into recession.

In this lesson, David focuses on the AVWAP on an index future on the NinjaTrader platform, but in this case, on a micro index future, which is the MES from the CME.

The MES is a micro contract of the ES and one-tenth the size of the larger contract, so a great place to start index trading if this is a new instrument for you, as the equivalent changes in price are that much smaller. So, for novice traders, an excellent low-risk place to start. And as you will see in the lesson, the contract is just as fluid as the full size. And of course as with the ES it trades 24/7 on Globex, so is always available.

Now it’s time to move on again to a different platform, and here we are back on TradingView with the AVWAP indicator.

In this lesson, David focuses on Tesla once more and applies the AVWAP indicator across multiple timeframes, underpinned by our volume price analysis methodology.

In this lesson, we focus on another extremely popular and liquid contract, which is the ETF for the SPY, which tracks the S&P 500 index. 

As you will see from the lesson, the AVWAP is a wonderful indicator for trading all markets and instruments, and whether they are stocks, ETFs, or futures, it works in the same way. All you need to do is decide which of the variants you prefer to use and apply it to your chosen timeframes, whether an intraday trader as here or on slower timeframes as a longer-term swing or trend trader.

In this lesson, David moves on to another market and instrument, and in this case, it’s commodities and a futures contract for CL oil using the AVWAP on TradingView.

Once again, it simply goes to show how the indicator works in all markets and instruments, and here of course, we would also have the XLE sector alongside if trading intraday to give us a view on the energy market of which oil is a major component.

In this lesson, we move on again and consider the fourth variant of our VWAP indicator, and in this case, it’s the TWAP, which in fact, excludes volume as it is based on time, and hence the name time-weighted average price.

We have also changed platforms once more and are back on  NinjaTrader with a stock this time, which is Meta.

In this lesson, David stays with the TWAP indicator on NinjaTrader and Meta but includes the VWAP version alongside to show you how the TWAP and VWAP work together.

As always, this is across multiple timeframes on the platform and supported by our volume price analysis methodology.

In this lesson, we take a closer look at the TWAP indicator, but in addition, we also put it side by side with the VWAP to show you how it varies.

In this example we are using Meta stock and as always, supported by our volume price analysis methodology below.

In this lesson on TradingView we have moved on again, but here David focuses on the TWAP indicator in action on TradingView and Meta but using this with the VWAP in multiple timeframes. 

In this case, there are six charts in total, with three TWAP charts above and three VWAP charts below which highlights the differences for you between the two versions of the indicator.

In this lesson, David shows you how to install the TWAP and VWAP on a single chart in NinjaTrader.

It’s very simple and easy to do, and saves screen real estate too, so a neat way to have two of the indicators on one chart.

In this lesson, David shows you how to install the TWAP and VWAP on a single chart on the TradingView platform.

It’s very simple and easy to do, and saves screen real estate too, so a neat way to have two of the indicators on one chart.

Finally, we come to the last of our five variants of the VWAP indicator, and this is what we call the Interday VWAP. This version is one that works on the slower timeframes of the daily, the weekly and monthly timeframes, so it is more relevant to stock investors as a result, and hence the reason we developed it as a toil for the investment perspective.

In this case, we are on the Ninjatrader platform and as always, viewing the indicator across multiple timeframes. 

Finally, we come to the last of our five variants of the VWAP indicator, and this is what we call the Interday VWAP. This version is one that works on the slower timeframes of the daily, the weekly and monthly timeframes, so it is more relevant to stock investors as a result, and hence the reason we developed it as a toil for the investment perspective.

In this case, we are on the TradingView platform and as always, viewing the indicator across multiple timeframes.

This is another of our volume-based indicators, and in this case, one we refer to as the VRSI or volume relative strength indicator. As the name suggests, this considers the relative volume on the chart and presents us with a graphical display of what we call pressure. In other words, the pressure supporting a trend higher or lower, or alternatively, of course, a lack of pressure, which reveals the opposite.

The beauty of this indicator is that it is the perfect compliment for our volume price analysis methodology, as many of the analytical approaches are identical in terms of analyzing pressure bars in the same way that we do with volume bars. In addition, it also gives us increased confidence to stay in a position once underway and not to exit too early on an emotional exit.

In this lesson, David walks you through the key essentials of the volume relative strength indicator.

In this lesson on NinjaTrader, David explains how to use the volume relative strength indicator in multiple time frames when day trading stocks. In this case, we look at several major blue chip stocks, including Amazon and Intel.

As you will see, it is hugely complimentary to the volume price analysis methodology, and you can of course, apply volume to the same chart, but here, we prefer to display it separately for clarity.

n this lesson, we move on to another market on the NinjaTrader platform and apply the Volume Relative Strength Indicator or VRSI, to the futures market. In this case David has chosen the ES Emini contract which is the full size index future for the S&P 500.

As you will see, the indicator works in exactly the same way here on futures as it does for stocks or, indeed, any other market or instrument.

In the previous lesson we considered day trading futures and in particular the ES Emini on the NinjaTrader platform using the volume relative strength indicator, and in this lesson, we stay on the same platform but move on to focus on ETFs. But as always, as you will see, the indicator is applied and interpreted in exactly the same way whether for stocks, futures, or ETFs or indeed any other market. In this case David has chosen the XLK ETF which is the technology sector.

In this lesson, we remain on the Ninjatrader platform with the volume relative strength indicator but shift the focus to longer-term investing.

Here, David focuses on several large-cap stocks, including Caterpillar, Honeywell, Apple, and several more, to show how to use the indicator when considering stocks from an investment perspective and interpreting the volume relative strength indicator accordingly. But as you will see, the analysis is the same whether on the short term or longer term – it is just the timeframe and your time horizon which change.

This is another of our volume-based indicators, and in this case, one we refer to as the VRSI or volume relative strength indicator. As the name suggests, this considers the relative volume on the chart and presents us with a graphical display of what we call pressure. In other words, the pressure supporting a trend higher or lower, or alternatively, of course, a lack of pressure, which reveals the opposite.

The beauty of this indicator is that it is the perfect compliment for our volume price analysis methodology, as many of the analytical approaches are identical in terms of analyzing pressure bars in the same way that we do with volume bars. In addition, it also gives us increased confidence to stay in a position once underway and not to exit too early on an emotional exit.

In this lesson, David walks you through the key essentials of the volume relative strength indicator on NinjaTrader.

In this lesson on TradingView, David explains how to use the volume relative strength indicator in multiple time frames when day trading stocks. In this case, we look at several major blue chip stocks, including Nike, Walt Disney and Pepsico.

As you will see, it is hugely complimentary to the volume price analysis methodology, and you can, of course, apply volume to the same chart, but here, we prefer to display it separately for clarity.

In this lesson, we stay with the TradingView platform but move on to a new instrument using the volume relative strength indicator as a day trading tool. In this case, we have moved to the world of futures.

In this case, it is a mixture of contracts, starting with index futures and the YM, which is the E Mini for the Dow Jones, and then moving to the world of commodities to consider both copper and oil to key commodities for industry and which can both be considered bellwether commodities for the market cycle.

In this lesson, we stay with the TradingView platform and move to another instrument which is ETFs and apply the volume relative strength indicator in the same way, using the faster timeframes for day trading.

Here David starts with the SPY, the most liquid and heavily traded of all ETFs before moving on to gold and sector ETFs including the XLK and the XLU.

In this lesson, we remain on the TradingView platform with the volume relative strength indicator but shift the focus to longer-term investing.

Here, David focuses on several large-cap stocks, including Amazon, Apple, Microsoft, Nvidia, and several more, to show how to use the indicator when considering stocks from an investment perspective and interpreting the volume relative strength indicator accordingly. But as you will see, the analysis is the same whether on the short term or longer term – it is just the timeframe and your time horizon which change.

In this lesson, David focuses on the Market Analyser for NinjaTrader, which is a great tool to help with managing multiple timeframes and seeing what the indicators reveal all in one workspace.

As you will see in the lesson, it can be used for multiple markets and instruments, and in this case, we focus on stocks, ETFs, and futures, but the application can be used for any markets we choose. This is a free tool that comes with your NinjaTrader 8 control panel and, therefore, can be set up at any time. The base timeframe of the analyzer is 1 minute, and David shows you how to change this in a follow-up lesson.

In this lesson, David focuses on the Market Analyser for NinjaTrader, which is a great tool to help with managing multiple timeframes and seeing what the indicators reveal all in one workspace.

As you will see in the lesson, it can be used for multiple markets and instruments, and in this case, we focus on currencies and currency futures, but the application can be used for any markets we choose. This is a free tool that comes with your NinjaTrader 8 control panel and, therefore, can be set up at any time. The base timeframe of the analyzer is 1 minute, and David shows you how to change this in a follow-up lesson.

In this lesson, David shows you how to change timeframes on the Market Analyzer On NinjaTrader 8. 

This can be tricky to find, as the base timeframe for the application is one minute which is not clear from the documentation on NinjaTrader.

This is yet another in our series of volume-based indicators, and in this case it’s one which shares much in common with the currency strength indicator for the forex markets.

The market strength indicator or MSI was developed to provide a way of viewing multiple markets simultaneously in a single workspace, firstly to identify possible periods where the market is oversold or overbought with the potential for reversal trades, secondly, the development and strength of trends, and third, to highlight correlating or inverse correlating markets. The last of these is also used by the indicator to describe visually and intuitively those which are in disagreement and therefore signaling higher risk in the trade.

So this really is a valuable indicator as it presents so much data across multiple markets in a clear and visual way, and we start here with the NinjaTrader 8 version of the indicator.

One of the great strengths of the market strength indicator (MSI) is in how it visually describes those relationships that reveal so much across markets or instruments.

In this case, on the NinjaTrader platform, David shows the market strength indicator in action for index futures along with the VIX, which is a classic inverse relationship that the indicator then describes. 

In this lesson, David introduces a mixture of markets, with the SPY, some ETFs and the VIX on the market strength indicator for NinjaTrader 8. In addition to the SPY he has added the QQQ, the DIA, and the IWM so a full house of the major indices.

Once again, this gives us a visual representation of which are strong, which are weak, those which are potentially oversold or overbought, the strength of trends, and much more. And in addition, and something we often see, is whether there is any divergence in terms of the indices which we should be aware of immediately, as if we are trading in one, and the others are moving in the opposite direction, the risk on the trade is that much higher.

In this lesson, we continue with the market strength indicator on NinjaTrader 8 and move to the world of stocks, but in addition, David has also added in the SPY and the XLK sector ETF, so it is a nice blend.

One point to note, which follows across all these market strength indicator lessons, is the multi-timeframe aspect, and just like our charts, here too, we use three timeframes to give us that all-important view across the time horizon. Remember, a trend starts in your fastest timeframe and then migrates through to your slowest if it is a strong trend, and this applies whether on a chart or an indicator. It is the same principle.

The stocks chosen here are Meta, Apple, Tesla, and Nvidia.

In this lesson, we move to a different market and in this case, it’s commodities, so you can see the market strength indicator working in exactly the same way using futures.

The principles of considering three timeframes remain paramount and in this case, David has chosen oil, gold, silver, and copper for this example.

In this lesson, we move to the world of bond futures with the 2-year, the 5-year, and the 10-year loaded onto the market strength indicator for NinjaTrader. In addition, David has also added the ES for the S&P 500 so you can see the relationship between bond markets and equity markets through the prism of the market strength indicator.

Using the indicator in this way really does provide a powerful insight as to whether markets are in agreement or disagreement, and we hope from these lessons have given you your own ideas with ways you can be creative using the indicator in any timeframe from the fastest to the slowest and everything in between. 

This is yet another in our series of volume-based indicators, and in this case, it’s one that shares much in common with the currency strength indicator for the forex markets.

The market strength indicator or MSI was developed to provide a way of viewing multiple markets simultaneously in a single workspace, firstly to identify possible periods where the market is oversold or overbought with the potential for reversal trades, secondly, the development and strength of trends, and third, to highlight correlating or inverse correlating markets. The last of these is also used by the indicator to describe visually and intuitively those which are in disagreement and therefore signaling higher risk in the trade.

So, this really is a valuable indicator as it presents so much data across multiple markets in a clear and visual way, and we move here to the TradingView version of the indicator.

The Market Strength Indicator On TradingView With Index Futures & VX Futures

One of the great strengths of the market strength indicator (MSI) is in how it visually describes those relationships that reveal so much across markets or instruments.

In this case, on the TradingView platform, David shows the market strength indicator in action for index futures along with the VIX, which is a classic inverse relationship that the indicator then describes. In this example he uses ETF indices with the SPY, QQQ, DIA and IWM.

In this lesson, we stay in the world of ETFs and remain on the TradingView platform, but here we have moved on to sectors.

Once again, you can see how the indicator delivers so much information from a variety of timeframes in a single workspace, as well as showing you the strength of trends, relationships between sectors, and of course, opportunities for reversal trading. The market strength indicator is also invaluable when run alongside one for stocks to see if the stock you are trading is following the same path as the sector.

In this lesson, we continue with the market strength indicator on TradingView and move to the world of stocks, but in addition, David has also added in the SPY and the XLK sector ETF, so it is a nice blend.

One point to note, which follows across all these market strength indicator lessons, is the multi-timeframe aspect, and just like our charts, here, too, we use three timeframes to give us that all-important view across the time horizon. Remember, a trend starts in your fastest timeframe and then migrates through to your slowest if it is a strong trend, and this applies whether on a chart or an indicator. It is the same principle.

The stocks chosen here are INTL, AMD, AVGO, and TSLA.

In this lesson, we move to a different market, and in this case, it’s commodities, so you can see the market strength indicator working in exactly the same way using futures.

The principles of considering three timeframes remain paramount, and in this case, David has chosen oil, gold, silver, and copper for this example. However in addition, he has also included the UUP, which is the US dollar ETF to show the inverse relationship of commodities and the US dollar, and in addition, he has also included the MSI sister indicator, which is the currency strength indicator CSI which also has the US dollar of course. So once again, an interesting combination of indicators and markets, which I hope have given you some further ideas!

In this lesson, we move to the world of bond futures with the 2-year, the 5-year, and the 10-year loaded onto the market strength indicator for Tradingr. In addition, David has also added the ES for the S&P 500 so you can see the relationship between bond markets and equity markets through the prism of the market strength indicator.

Using the indicator in this way really does provide a powerful insight as to whether markets are in agreement or disagreement, and we hope from these lessons have given you your own ideas with ways you can be creative using the indicator in any timeframe from the fastest to the slowest and everything in between.