Value Area Indicator NinjaTrader 8: A Comprehensive Guide to Value Area Indicator


NinjaTrader 8 is specially designed for active traders. If you are a trader who buys stocks, trade futures, and forex markets, then you can use NinjaTrader. The NinjaTrader 8 is a great platform and provides automated exchange transactions. The system offers you various components.

You can develop the strategies given by the system and use them for your benefit. Also, the system will allow the integration of third-party tools so that you can create your drawing tools, layouts, and a partially automated system, such as Value Area Indicator for NinjaTrader 8.

There are many types of volume indicators available, and some of them are written below.

  • On-Balance Indicator

OBV (On Balance indicator) is a cumulative indicator that calculates the buying and selling pressure. It sums up the volume on up days and subtracts the volume on down days. If the stock closes higher than the previous close, it is considered an up-volume. Similarly, if the stock closes lower than the previous close, it is regarded as a down volume.

  • Volume RSI

The volume RSI (relative strength index) indicates the formula of RSI instead of the price that changes. The volume RSI oscillates around 50% center-line in the range from zero to hundred percent.

  • Volume Price Trend Indicator

The VPT (volume price trend ) indicator helps determine a stock’s price direction and the potency of price change. The indicator consists of an accumulative magnitude line that adds or subtracts—a multiple of the rate difference in a share price’s trend. Also, the existing volume is based on the security’s upward or downcast directions.

The VPT indicator is similar to the OBV (on-balance volume) indicator, i.e., it measures the cumulative volume, which provides traders with a statement about a security’s money flow.

  • Money Flow Index

MFI (money flow index) analyzes both times and the price for measuring the trading pressure of buying or selling. Also, it indicates the volume and is known as the volume-weighted relative strength index (RSI). There is a formula for measuring MFI as follows:

  • Typical Price= (High + Low + Close)/3

  • Raw Money Flow= Volume X Typical Price

  • Money Flow Ratio= (14-period PMF)/(14-period NMF)

  • Money Flow Index= 100 – 100/(1 + MFR)



  • Accumulation and Distribution

This is a type of indicator that measures the cumulative flow of money into and out of stock. This indicator can size up the demand and supply, which affect the price movement.

  • Negative Volume Index

The NVI ( negative Volume Index) is a cumulative indicator that decides when smart money is active. This indicator works under certain assumptions like the smart money is active on days when volume decreases. And when volume increases, the not-so-smart money is involved.

  • Volume-weighted Average Price

The Volume-weighted Average Price considers the volume and the price to show the average asset price traded throughout the trading sessions. With the service of this indicator, you can witness the actual value of the security trading. Thus you can get the signal when the security was bought or sold at a fair price.

Parting Thought

Volume indicator is an essential technical part for traders and investors. So knowing them can be beneficial for you if you are planning to do full-time trading.



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