Overview
The Trend Magic indicator is a very popular trend indicator. It comes from the forex world where it's used by many traders. Trend Magic Indicator is a combination of Commodity Channel Index (CCI) and Average True Range (ATR). That is how it plots the trend signals and identifies the possible market entry areas within the trend.
We took this basic idea of the indicator and supercharged it in many ways by adding trading signals, statistics, alerts, and a ATR volatility based band
ATR based channel bandwidth
The SSL channel can optionally be widened by applying an ATR-based multiplier. When the ATR multiplier is set to 0 the band has its original width determined by the 2 moving averages. By increasing the multiplier to for example 0.5, 1, 2, or more you can widen the SSL channel to your liking
Real-time trading statistics
The indicator calculates the trading statistics for each historical trade setup in real-time. The stop loss and target used can be changed in the indicator settings. This gives the trader a quick and easy way to find the optimal target and stop-loss settings for a particular market and or timeframe
Alerts & Signals
The indicator provides the following trading signals
Trend reversal signal
This signal gets indicated by a red or blue R (depending on the trend) and occurs when a potential trend reversal occurs.
Pullback signal
This signal gets indicated by a green PB and occurs when the price pulls back and closes inside the channel and then closes outside the channel
Both signals are shown on the chart in real-time and can give ninja trader alerts
Paint bars
Of course, you have the option to paint the candles in the color of the trend.
The colors can be changed to your own liking
Plots for automated strategies
The indicator exposes a Signal plot for people who want to build their own automated strategy based on this indicator. The signal plot can be used from ninja script, the strategy builder, and/or tools like Bloodhound
The values for the Trend plot are:
- -1 trend is bearish
- +1 trend is bullish
The values for the Signal plot are
- -1 bearish trend reversal signal
- +1 bullish trend reversal signal
- -2 bearish pullback signal
- +2 bullish pullback signal
Features
- Trend following
- ATR-based channel.
- Statistics showing win rate for each setup
- Paint bars
- Reversal signals
- Pullback signals
- Plots for strategy builders
- Alerts
- Supports Bloodhound
- Works on any time frame
- Works on any market (futures, crypto, stock, options)
- Works with any bar type (time, Renko, tick, volume, range,..)
- Works with any NinjaTrader version
Changelog
13-aug-2023 v1.0.0.5
- fixed bug that indicator sometimes showed false short signals
10-oct-2022 v1.0.0.1
- fixed bug that no signal was generated for reversal setups
14-may-2021 v1.0.0.0
- first release
Media
