Chart Setup

Main ideas & lessons

• Coach Alex explains a step-by-step way to set up trading charts in NinjaTrader, using the same general principles for other platforms.
• The chart setup relies on multiple timeframes and specific indicators to determine:
  • Trend direction (via short and medium SMAs)
  • Volatility / mean reversion (via Bollinger Bands)
  • Momentum / overbought-oversold (via Stochastics)
  • Market movement range (via ATR)
  • Trailing stop levels (via Parabolic SAR)
  • Support / resistance (via Pivot Points)
  • Timing for candle/bar changes (via Bar Timer)
• He also covers:
  • A “tick chart” setup (non-time-based charts)
  • An advanced “market breadth” style indicator: CaroTti

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Methodology / step-by-step chart setup (general approach)

Start from scratch (applies to all platforms)

• Right-click the chart area.
• Go to Indicators.
• Find the indicator in your platform’s list (locations vary by platform).
• Double-click to add it to the configured window.
• Set key parameters and colors.
• Click OK to apply.
• Emphasize consistency in visuals (e.g., using the same colors across charts).
• Save workspace / chart settings when done.

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1) 60-minute chart (trend using two SMAs)

Chart timeframe

• 60-minute bars (1 bar = 60 minutes)

Indicators

• SMA #1
  • Period: 20
  • Calculate: on each tick
  • Color: Dodger Blue
• SMA #2
  • Period: 5
  • Calculate: on each tick
  • Color: Seashell

Trend rule (as taught)

• If 5-period SMA is below 20-period SMA → downtrend
• (Implied) If above, then uptrend

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2) 15-minute chart (trend + support/resistance drawing idea)

Chart timeframe

• 15-minute bars

Indicators

• SMA #1
  • Period: 20
  • Calculate: on each tick
  • Color: Dodger Blue
• SMA #2
  • Period: 5
  • Calculate: on each tick
  • Color: Seashell

Interpretation

• Same concept: 5 vs 20 SMA indicates trend direction.

Drawing approach (mentioned)

• Identify support where buyers enter.
• Identify selling zones where price reacts downward.

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3) 2-minute chart (full indicator suite)

Core idea

• More for signals/conditions than for pivoting solely off the 5/20 SMA pair (those were used more on the 60/15 charts).

Indicators added

Bollinger Bands

• Parameters:
  • Period: 20
  • Standard deviation: 2.5
  • Calculate: on each tick
• Plots:
  • Upper band: “Lawn Green” (heard as “Laur/Lawn”)
  • Middle band: Dark Gray
  • Lower band: GoldenRod
  • Band width: 1 (can be thicker)

Hull Moving Average (HMA / “Whole Moving Average”)

• Period/time: 21
• Calculate: on each tick
• Plots: single plot
• Color: Yellow
• Notes:
  • References John E. Hull as the inventor/namesake (platform naming can vary).

Stochastics (overbought / oversold)

• Purpose: overbought vs oversold
• Parameters (as stated):
  • %K period: 14
  • %D period: 3
  • Smoothing/accelerator: 5 (smoothing “turns”)
• Calculate: on each tick
• Visuals:
  • Upper/lower lines: dark cyan
  • %D line: red/crimson, thicker with width 2
  • Another line: teal (he suggests switching to blue if desired)
• Notes:
  • Some platforms may differ slightly in construction/feed; aim to match NinjaTrader behavior.

Average True Range (ATR)

• Period: 10
• Movement plotted on the 2-minute chart
• Color: Dark Cyan
• Interpretation:
  • Indicates how much the market is moving; helps spot abnormal behavior.
• Display:
  • Appears across panels / its own scale area.

Parabolic SAR (trailing stop)

• Usage:
  • Acts as a trailing stop
  • When SAR flips above/below price, it functions as a buy/sell signal directionally (per his rule)
• Parameters:
  • Acceleration factor max: 0.2
  • Emphasizes it can move up to 10x faster (“steps”)
  • Designed to respond to price change in fast markets (per description)
• Color: GoldenRod

Pivot Points (daily-based, plotted on 2-minute chart)

• Key settings:
  • Pivot range: Daily
  • Width: 20
  • Input series: on bar close
• Lines/levels:
  • P (daily pivot): orange-red
  • R1: resistance 1, Dodger Blue
  • R2 / R3: additional resistance levels (also described as Dodger Blue; farther-apart levels distinguished)
  • S1: support 1, Crimson
  • S2 / S3: additional supports, Crimson

Bar Timer (candle/bar change timing)

• Purpose:
  • Shows how many seconds remain until the current bar changes
• Where found:
  • In NinjaTrader’s indicator list under alphabetical order (specifically mentions “bar timer”)
• Behavior:
  • Once added, it helps track the end of the 2-minute interval

He indicates this “full suite” is what he considers needed on the 2-minute chart.

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4) “20 range” chart (range-based / tick- or range-driven concept)

Purpose

• Bars change only when range exceeds 2 ticks, meant to reduce stress from immediate unfavorable movement after entry.
• He advises adding a similar indicator set, tuned to this chart type.

Indicators and settings (as stated)

• Bollinger Bands (optional)
  • “You don’t need them all the time…”
• Hull Moving Average (HMA)
  • Period: 21
  • Color: yellow (matching prior HMA style)
• Stochastics
  • Mentions “3-14 and 5” type settings (final intended parameters implied to match the earlier Stochastics concept)
• Net Change
  • Mentioned as a display element for the chart’s changing behavior
• Example reference:
  • A “tick chart” that changes every 133 trades (event-driven updates)

Remaining core trend tools

• He then uses the tick-based setup tools described in the next section.

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5) 133-tick chart (event-driven momentum/trend + breadth prep)

Main indicators

SMA

• Period: 200
• Color: Chartreuse
• Width: 3
• Ensure “visible” is enabled

EMA

• Period: 89
• Calculate: on each tick
• Scale justification: right side
• Color: GoldenRod
• Width: 3

Hull Moving Average (HMA)

• Period: 21
• Color: Yellow

Stochastics

• Uses “3-14 and 5” settings
• Placement note:
  • Put them so they don’t override the price (e.g., “panel 2 below the price”)
• Colors/levels:
  • Consistent with earlier settings (upper/lower lines and %D styling)

Resource/cleanup reminder

• Remove unused indicators to avoid tying up computer resources.
• Quote-style guidance: “You can keep stuff in there… but don’t tie up your computer’s memory.”

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Saving workspaces / backups

• Save setups through the workspace area:
  • Use Save and name the workspace.
• Make backups:
  • Keep one main version.
  • Use Save As to create “.bak” backups (example naming: “with … BAK”).
• Keep an organized backup in case you change something during the day.

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6) CaroTti indicator (market tick-based breadth snapshot)

What it is

• An advanced indicator some traders use.
• Data requirement:
  • You must purchase NYSE tick data (cost described as “a few dollars each month”).

What it measures (conceptually)

• For each stock, compare each new trade tick to the previous tick direction:
  • Slightly higher next trade → up tick
  • Slightly lower next trade → down tick
• Net up-ticks vs down-ticks across thousands of NYSE instruments.
• If the value is negative (example given: -387), it suggests more downs than ups across that universe.

Purpose

• Provides a snapshot of general market momentum/breadth.
• He notes it may not be necessary for the first few months.

Setup / visual rules

• Data series: tick movement (not price)
• Candle/bar colors:
  • Down bar: red
  • Up bar: lime green
• Chart style: set to Candlestick
• Example reference:
  • Uses a timestamp reference like a last trade at 4:09 p.m. Eastern to show the latest market tick info.

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7) Additional chart organization guidance

• He typically uses:
  • 60-minute and daily charts
  • Order bars in a separate window
• Rationale:
  • Prevents the main screen from becoming cluttered—too many indicators can make charts harder to read.

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Conclusion / takeaway

• Coach Alex’s overall lesson:
  • Build charts from scratch using a consistent multi-timeframe indicator framework.
  • Save and organize chart/workspace configurations.
  • Use advanced breadth tools like CaroTti only if/when needed.

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Speakers / sources featured

• Coach Alex (primary speaker)
• John T. Hull (referenced with Hull Moving Average / HMA)
• Welles Wilder (referenced with Parabolic SAR)
• New York Stock Exchange (NYSE) tick data (referenced as the data source underlying CaroTti)