The ZoneTraderPro Indicator Suite
Order Flow Patterns
The ZoneTraderPro Price Patterns
The ZoneTraderPro Indicator Suite introduces repeating price patterns and support and resistance zones.
•Exhaustion Trading Pattern
•Trend Trading Pattern
•Reversal Trading Pattern
•TICK Divergence Pattern
•TICK Filter Strategy
•ZoneTraderPro Support and Resistance Zones
The ZoneTraderPro Exhaustion Trade is a pattern which commonly marks market tops and bottoms.
The ZoneTraderPro Trend Trade is the trading pattern which which the ZoneTraderPro theory was developed for. New with the NinjaTrader version is the ability to use the $TICK as a filter.
As the market is making new highs or new lows, the TICK Divergence pattern checks to see if there is the actual buying in the underlying stocks themselves at the NYSE to justify the higher futures prices. When the TICK shows divergence, the pattern is completed. This pattern is made even more powerful when it is used in conjunction with the Exhaustion Trading Pattern. Both patterns do an excellent job of calling a top and bottom by themselves, but combined they represent the best risk / reward setup ZoneTraderPro has to offer.
Also included is the ZoneTraderPro TICK filter strategy which is a key filter for your trades. The TICK filter is designed to tell the trader if there is strong buying or selling pressure as it compares to the last buying or selling program, making it very easy to spot TICK divergences, especially if they occur at trading zones.
The NinjaTrader platform is a free charting platform. You will need a data feed to power the chart and the recommended data provider is Kinetick.
There is no free trial available. If you would like a demonstration of the NinjaTrader please contact ZoneTraderPro. Nothing redraws, moves, or disappears with the ZoneTraderPro software. What you see on a static chart, is the same as a live chart. ZoneTraderPro does not offer a trial because there is a learning process. When you purchase the suite, I offer personal training, so you understand what you are seeing. Without training there is no way to understand good and valid signals, from bad signals that the software is identifying as marginal or bad. It is not possible to offer free training for a trial.
The cost of the ZoneTraderPro Indicator Suite is $2695. Discounts are available by contacting ZoneTraderPro.
The ZoneTraderPro Indicator Suite Includes Order Flow
- POC Extension Pattern
- POC Absorption Pattern
- Stopping and Continuation Ratios
- Exclusive ZTP Order Flow Pattern
- Trapped Traders
- ZoneTraderPro Extension Zones
- ZoneTraderPro Absorption Zones
The POC patterns display in real time represent the best risk reward ratios that you will find. When a market reverses we frequently see these trades going 5 points or more. When your risk is 5-6 ticks, that is a tremendous trade.
Also displaying in real time are stopping and continuation ratios. Stopping ratios are frequently seen at market tops.
The exclusive ZTP Order Flow Pattern is a great pattern to enter a trade on a short term chart. But when used on a larger time frame chart, this is a very powerful signal that represents a large number of traders in the wrong direction that will need to be stopped out of their trades.
ZoneTraderPro Extension Zones represent a price area large traders made large bets in the historical charts and are likely to defend their positions on the current chart. These are not a trading signal by themselves, but an indication of possible trade if there is other order flow confirmation patterns.
ZoneTraderPro Absorption Zones represents real time information on a chart indicating where large traders are absorbing large amounts of contracts on limit orders.
The theory is to use the two indicator suites in conjunction with each other. They compliment each other. When a pricing pattern is developing, you begin to look for confirmation with an order flow pattern.
The ZoneTraderPro Divergence Suite Includes
- Delta Strength with Tape Reconstruction Filtering
- Cumulative Delta Indicator with Tape Reconstruction Filtering
- Divergence Indicator with the ability to filter for Order Size
- Special Divergence Indicator
- Accumulation and Distribution Indicator
- Key Points data to see the actual amount of contracts being sold on limit orders
The ZoneTraderPro divergence suite is easily its’ most important tool. Traders can use the divergence tool to identify 3 different types of divergence.
First there is the normal type of divergence, where a higher or lower price is not confirmed with the cumulative delta. Second there is a unique divergence that occurs as price is going from a high to a low, or a low to high. In this divergence we see the cumulative delta NOT CONFIRMING the move. For example, as price moved higher, the delta was actually negative, instead of positive. The third type of divergence is accumulation or distribution. This signal is based on all trading between a high to a high or a low to a low. It is especially powerful when combined with volume analysis.
To understand more about ZoneTraderPro uses divergences, CLICK HERE.
The ZoneTraderPro Indicator Suite brings Volume Analysis ability never before seen information to the trader. The indicator reads the delta numbers and is able to create a ratio. In the example on the right, the 176 is the KP2 ratio and that number is relatively high. It signifies that as price rose 5 points (20 ticks), the sellers were distributing contracts on limits orders at a rate of 176 contracts per tick (3525 / 20 = 176). This is combined with the software indicating Tick Divergence. The combination of the signals results in a 7.25 point sell off.
These numbers are updated in real time by the indicator and can be plotted on a plot below. This is tremendously important because you can see if the resistance is increasing (which would be good for the short trade) or decreasing (which would indicate shorts are pulling limit orders and would be bad for a short trade).
Notice the initial decrease in the ratio at 1005, and then the sudden significant increase. Then on the low, notice the ratio increasing into the low. The indicator is reading that the traders were initially significantly increasing resistance at the short signal, then significantly increase support at the low.
To understand more about Volume Analysis, CLICK HERE.
VIX SPY Real Time Divergence Patterns
ZoneTraderPro developed a Real Time BloodHound template that tracks the $VIX and several other charts related to $VIX and the ES/NQ Contract. The idea is the most powerful trading tool yet for ZoneTraderPro. Highly accurate divergences are detected in the SPY or QQQ which is used as a proxy for the ES or NQ.
What is interesting is that signals develop at or very near apex highs and lows. The template is looking at 6 different charts to make BloodHound signal (the red/green racing stripe on the chart) and the indicator on the bottom of the chart is showing is showing the degree of conviction to some or all of the signals being generated.
In the first trade example from above, at 0958 hours, after 13 points of profit, the indicator from red to solid green, signaling an exit. An exit can also be signaled by an opposing divergence signal.
In the template we are looking for multiple signals related to the VIX and multiple signals from the ES/NQ charts. So if ou look at the area in the middle of the chart, where we had the long accumulation trade, until the trade is signaled, most of the bars are 50% red because those signals are from the ES chart because price was falling and there is no VIX signal, one way or another until 1041 hours. Then you have a clear buy signal because all of the charts are in agreement.
The same thing happens on the short trade that follows. We got a little green, just because price was rising, but as soon as the selling started, we had a red stripe at the apex high.