Smart Patterns NinjaTrader Indicator

Smart Patterns NinjaTrader Indicator helps you to keep track of a market’s most basic and fundamental structure.  Markets alternate between various structural patterns throughout the trading day.  By tracking this, it greatly increases your theoretical probabilities of winning.  Markets attract buyers or sellers as new money enters the market, or it rejects buyers or sellers exiting the market as old money.  Any time you enter a trade, in order for it to be successful other traders have to carry your trade to success.  For years I have heard traders say things like, “they” ran the stops and took me out or other conspiracies.  This viewpoint can be destructive to the intent behind  a successful trading mindset that can lead to success. The bottom line is, you want traders to be on your side when you enter a trade. Given this, you want to trade where you will not likely get trapped and where these other (usually higher time frame traders) will also trade in the same direction you did earlier when you entered your trade.

As a market moves structurally, it invites these other groups to join your trade.  This happens in two ways and in two basic patterns. One is that most trends commence with short covering or long liquidation. This would be weak traders getting stopped out or forced out of the market.  Sometimes this patterning results in resumption of the prior trend. Other times, new money steps in and carries the trade further in your direction from your entry.  Understanding this is key to success.  Smart Patterns uses two modes of analysis where the second scenario described above is more likely to happen.  When the market moves according to Smart Patterns, it is an invitation to traders to continue the trend that is established.  If you combine this understanding with other Smart Trading Tools, you can discern specific known probabilities for this occurrence.

Smart Patterns has two basic modes that are based on the most fundamental move a market makes in the establishment of a Price Action Trend. In one case, the market will be longer on the second leg of an impulse and in the other case it will be shorter.  The Smart Patterns trading tool shows you these two fundamental patterns.  For each of these scenarios, you have different expectations that very often get played out; in one where it is longer on the second leg, you often get trapping. In the other, you are more likely to get trend continuation.

These basic patterns are taught daily in our trading room and as the most fundamental form of analysis. Everything else from the four basic quadrants of market analysis are based on this basic structure and themes and variations of it. Trading with this knowledge can be a big step towards being on the right side. These four basic quadrants are Price Action, Order Flow, Momentum and Support / Resistance.  When these things are in alignment probabilities for success go up and we get what we call “Probability Stacking (where the confluence of multiple simultaneous and sequential patterns and probabilities occur).”  There is really nothing like it in terms of gaining a basic understanding of the way markets work and, from the absolutely most fundamental starting point.

The manual is fairly extensive and covers a wide range of similar topics to what we have described above.  If you are learning to trade, this is highly recommended!

Also look in the related products section below or Smart Patterns Systems for NinjaTrader or other categories from the drop down menu above that include or can be combined with this great tool to create a comprehensive strategy and for special pricing.

As always, as if you need assistance we are here to help.