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.