Bar Eater

Bar Eater

Description

The Bar Eater indicator for NinjaTrader 8 is designed to monitor and analyze the highs and lows of previous bars, identifying potential breakout opportunities by tracking when current price action moves beyond these past levels. This tool maintains a dynamic list of support and resistance levels, which are updated and evaluated in real-time. When current price action surpasses or "eats" these levels, the indicator generates actionable signals based on predefined conditions. It can aid traders in spotting moments when the price breaks recent support or resistance, providing insights for potential trade entries or exits.

Key Features

  • Dynamic Level Tracking: Maintains a list of past support and resistance levels, updating and evaluating them as new bars form.
  • Breakout Detection: Identifies when current price action exceeds previous highs (resistance) or lows (support), signaling potential breakout opportunities.
  • Configurable Validity Period: Allows customization of the lifespan of identified levels before they expire, ensuring relevant data.
  • Signal Conditions: Detects and signals breakouts when the current bar surpasses a minimum number of past levels, with an optional requirement for strong bar closes.
  • Visual Signals: Plots visual markers on the chart (green upward triangles for breakout above resistance and red downward triangles for breakdown below support) to aid quick recognition of potential trading opportunities.

Tips for Implementation

  • Parameter Adjustment: Customize Validity and MinimumBarsEaten to match the desired sensitivity and timeframe of your trading strategy. A shorter Validity period may be suitable for intraday trading, while longer periods could be more appropriate for swing trading.
  • Use with Confirmation: Integrate this indicator with other technical analysis tools, such as volume or momentum indicators, to confirm breakout signals and increase trade confidence.
  • Strong Close Setting: Enable the StrongClose parameter to filter for stronger breakout signals by requiring bars to close within the top or bottom 25% of their range.
  • Backtesting: Perform thorough backtesting with different parameter settings to understand the indicator's performance across varying market conditions.

Parameters

Validity:

  • Type: int
  • Description: The lifespan of a support or resistance level before it expires.
  • Default Value: 10
  • Valid Values: Any positive integer

Minimum Bars Eaten:

  • Type: int
  • Description: The minimum number of past levels that must be surpassed by the current price action for a signal to be generated.
  • Default Value: 3
  • Valid Values: Any positive integer

Strong Close:

  • Type: bool
  • Description: If enabled, requires the bar to close strongly (within the top or bottom 25% of its range) for a valid signal.
  • Default Value: true
  • Options: true (Yes), false (No)

Plot Offset (Ticks):

  • Type: int
  • Description: The offset in ticks for the plotted signal from the high or low of the bar to enhance visualization.
  • Default Value: 3
  • Valid Values: Any positive integer

Plots

IndicatorSignalUp:

  • Type: Plot
  • Style: Triangle Up
  • Color: Green
  • Description: Marks a potential breakout signal when current price action exceeds past resistance levels.

IndicatorSignalDown:

  • Type: Plot
  • Style: Triangle Down
  • Color: Red
  • Description: Marks a potential breakdown signal when current price action breaks below past support levels.