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.