POC Crossover Plus

POC Crossover Plus

Description

The POC Crossover Plus indicator for NinjaTrader 8 is an advanced trading tool that identifies potential trend reversals using the Point of Control (POC) from volume profile analysis. This indicator monitors the number of bars closing around the POC and signals potential breakouts when specific conditions are met. It offers flexibility in signal generation, allowing traders to customize bar counts, breakout confirmation requirements, risk-reward ratios, and signal validity periods. The POC Crossover Plus also provides options to filter signals based on whether the price touches the POC and whether the breakout confirmation bars need to be consecutive or cumulative. It is ideal for traders seeking refined crossover signals to enhance their trading strategies.

Key Features

  • POC-Based Analysis: Monitors price interactions with the Point of Control to detect potential breakout and trend reversal signals.
  • Signal Customization: Allows traders to set parameters such as SetupLoadBars, BreakoutConfirmationBars, and SignalValidityPeriod to tailor the indicator to different trading styles and market conditions.
  • Risk-Reward Evaluation: Includes a built-in risk-reward assessment to ensure that only signals meeting the minimum ratio are considered.
  • Flexible Confirmation: Provides an option to use consecutive or cumulative confirmation bars, giving traders control over signal strictness.
  • Visual Signal Plots: Displays visual indicators for long and short signals on the chart, along with upper and lower levels for signal evaluation.
  • Touches POC Filter: Adds an extra condition requiring price to touch the POC line before generating a signal, enhancing signal accuracy.

Tips for Implementation

  • Parameter Optimization: Adjust the POCPeriod, SetupLoadBars, and BreakoutConfirmationBars according to the asset being traded and the timeframe used. Higher values may suit long-term analysis, while lower values cater to shorter timeframes.
  • Risk Management: Utilize the MinimumRiskRewardRatio parameter to filter out signals that do not meet desired risk-reward criteria, aligning with your trading strategy.
  • Confirmation Strategy: Decide between consecutive and cumulative confirmation based on your risk tolerance and strategy preferences.
  • Backtesting: Conduct thorough backtesting across various market conditions to fine-tune parameter settings for the best results.

Parameters

POC Period:

  • Type: int
  • Description: Number of bars over which the volume profile's POC is calculated.
  • Default Value: 10
  • Valid Values: Any positive integer

Setup Load Bars:

  • Type: int
  • Description: Number of consecutive bars that must close around the POC before monitoring for a crossover signal.
  • Default Value: 5
  • Valid Values: Any positive integer

Breakout Confirmation Bars:

  • Type: int
  • Description: Number of bars that must close on the opposite side of the POC to confirm a breakout. Bars can be consecutive or cumulative based on settings.
  • Default Value: 2
  • Valid Values: Any positive integer

Consecutive Confirmation:

  • Type: bool
  • Description: When enabled, the breakout confirmation bars must be consecutive; when disabled, they can be cumulative.
  • Default Value: false
  • Options: true (Yes), false (No)

Touches POC:

  • Type: bool
  • Description: Requires price to touch the POC line for a signal to be generated, adding an extra layer of validation.
  • Default Value: false
  • Options: true (Yes), false (No)

Signal Validity Period:

  • Type: int
  • Description: Maximum number of bars within which the signal remains valid after crossing the POC.
  • Default Value: 5
  • Valid Values: Any positive integer

Maximum Bars From New Extreme:

  • Type: int
  • Description: Number of bars after a new high or low is formed before the crossover signal must occur.
  • Default Value: 5
  • Valid Values: Non-negative integer

Minimum Risk-Reward Ratio:

  • Type: double
  • Description: The minimum risk-reward ratio required for a valid trade signal.
  • Default Value: 1
  • Valid Values: Any positive double

Plot Offset (Ticks):

  • Type: int
  • Description: The offset in ticks for plotting signals relative to the high or low of the bar.
  • Default Value: 5
  • Valid Values: Any positive integer

Plots

IndicatorSignalUp:

  • Type: Plot
  • Style: Triangle Up
  • Color: Green
  • Description: Indicates a potential long signal when conditions are met.

SignalUpUpperLevel:

  • Type: Plot
  • Style: Hash
  • Color: Green
  • Description: Marks the upper level of a potential long signal.

SignalUpLowerLevel:

  • Type: Plot
  • Style: Hash
  • Color: Green
  • Description: Marks the lower level of a potential long signal.

IndicatorSignalDown:

  • Type: Plot
  • Style: Triangle Down
  • Color: Red
  • Description: Indicates a potential short signal when conditions are met.

SignalDownUpperLevel:

  • Type: Plot
  • Style: Hash
  • Color: Red
  • Description: Marks the upper level of a potential short signal.

SignalDownLowerLevel:

  • Type: Plot
  • Style: Hash
  • Color: Red
  • Description: Marks the lower level of a potential short signal.