DTFX Zones Indicator for NinjaTrader 8

Created 13 Sep 2024 · Updated 08 Nov 2024

The DTFX Zones Indicator is a Premium indicator for the NinjaTrader 8 platform, plotting Fibonacci retracement zones based on market structure shifts.

Prerequisites

To properly use this indicator you should have the following prerequisites available.


Description

The DTFX Zones indicator shows zones — Fibonacci retracements based on market structure shifts — drawn between valid swing points.

These retracement levels can be used as support or resistance levels to enter and exit trades.

Market structure shifts occur when price breaks a swing level. When that happens, retracement levels can be drawn from the breakout swing back to the swing that originated the breakout leg. Price can revisit those retracement levels and bounce off them to confirm the structure shift.

Trading Strategy Example

Not all DTFX zones are created equal, and not all DTFX zones should be traded.

The indicator displays DTFX zones drawn in green and red for bullish and bearish structure shifts respectively. In a typical session, a few small zones can form first, followed by a larger zone that generates a genuine trading signal.

DTFX Zones example with bullish trading signal
Click to enlarge

A trade is taken when price revisits the 50% retracement level of the DTFX zone. The stop loss is set to the low of the swing, with the take profit set to a 1:1 ratio measured against the breakout level.

So the strategy is the following:

  • Aim for 1 to 2 maximum trades per day
  • Wait for a DTFX zone that is wide enough, avoiding small zones — these tend to occur around the US market open and close
  • Once a zone forms, wait for price to reach the 50% retracement level and enter once price shows signs of slowing down around that level
  • Set your stop loss at the 100% level and your take profit at the 0% level

A losing trade can also occur right after a winning one, on the opposite-direction zone that forms immediately after — price pulls back and reaches the 50% retracement level, but instead of reversing, continues straight through to the stop loss at the zone's far edge. Not every zone plays out favorably, which is why zone width and context matter more than trading every zone that appears.

DTFX Zones example with bearish losing trade
Click to enlarge

Features

The DTFX Zones indicator has a set of unique features:

  • Can run on a higher timeframe while drawing on a lower timeframe, allowing multi-timeframe analysis
  • Can play a sound alert on each detected DTFX zone
  • Can run with or without TickReplay, on any time-based or price-based chart

Parameters

We always try to keep the parameters to a minimum.

License
License The license key you get when you create an account on automated-trading.ch. After creating an account, copy your license key from the billing page. You only need to set this parameter once per month — once validated, it's remembered for the rest of the month.
Market Structure
Swing Period Swings are higher lows, higher highs, lower highs, and lower lows. After each price bar closes, a swing can be detected, but a following bar can cancel a swing by forming a new swing of the same type shortly after. The swing period sets how many bars must separate two swings of the same type — increasing it decreases the number of swings detected overall, and decreasing it increases them. A value of 3 or 4 works well for most instruments.
Confirmation Mode Sets the mode that confirms formation of the DTFX zone.
  • Bar Close: the DTFX zone is confirmed once the breakout is confirmed by a candle's bar close
  • Bar Wick: the DTFX zone is confirmed as soon as the breakout is confirmed by just a candle's wick
Run On Higher TimeFrameEnables/disables running the DTFX Zone algorithm on a higher timeframe while displaying the zones on the active chart.
Higher TimeFrameSelects the higher timeframe used when Run On Higher TimeFrame is enabled. Make sure to select a timeframe genuinely higher than the active chart's — e.g. if the chart is on 15 Minutes, select something like 1 Hour. Selecting a lower timeframe (e.g. 1 Minute) will make the indicator not work.
Higher TimeFrame PeriodSets the period of the higher timeframe when Run On Higher TimeFrame is enabled.
Rendering
Render OpacityThe opacity used to render zones on the chart.
Bullish ColorThe draw color of bullish zones on the chart.
Bearish ColorThe draw color of bearish zones on the chart.
Show SwingsControls whether swing points are drawn on the chart.
Show Zone EdgesEnables/disables drawing the zone's upper and lower edge lines.
Show Fibo LevelsEnables/disables drawing the Fibonacci levels inside the DTFX Zones.
Fibo Levels
23.60 %Enables drawing of the 23.6% Fibonacci level.
38.20 %Enables drawing of the 38.2% Fibonacci level.
50 %Enables drawing of the 50% Fibonacci level.
61.80 %Enables drawing of the 61.8% Fibonacci level.
76.40 %Enables drawing of the 76.4% Fibonacci level.
Sound Alert
Play SoundEnables playing an alert sound whenever a DTFX Zone is detected.
Play Sound FileThe file name played on sound alert — can be set to any .wav file on your computer.

Download & Installation Instructions

License Requirements

At automated-trading.ch you can choose to either purchase a monthly subscription to use our premium products, or use our free products without subscribing.

In both cases, you need to create an account so you can get a License you can use for both premium and free products.

To obtain your license, simply sign up and then get your license on the billing page.

Important: This is a Premium product. It can be run in Backtest, Playback, and Optimization modes for free; an active Premium subscription is required to run it live.
Download
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Latest Version v1.1.0.0 · Published 1 year ago
This file was downloaded 392 times. Last download was 1 day ago.

You can also download this strategy — and every other automated-trading.ch strategy or indicator — anytime from your centralized Downloads page.

Installation Steps
1
Import the downloaded .zip file into NinjaTrader using the Import NinjaScript menu item.
2
Open a new chart window.
3
Right-click the chart and choose Indicators... to open the Indicators dialog, then add the DTFX Zones indicator from the list.
4
Copy and paste your license (found on the billing page) into the indicator's License parameter.
5
After adding the indicator with a valid license, it first runs on the chart's loaded historical data, then continues running on live market data.

Frequently Asked Questions

General

Yes — if you have an idea that you believe can improve this indicator, use the contact page to send us a message.

No, the source code of the indicator is protected for copyright reasons.

Yes, you can use this indicator without TickReplay, but bear in mind that in this case the indicator will not detect events on historical candles — it will only start detecting them on real-time volume and price data.
Subscriptions Q&A

After you sign up, you'll get access to the billing page, where you can grab your license and use it on every free or premium product. We don't use NinjaTrader's built-in vendor licensing system — we've built our own, where you submit the license number on each product you're using.

Yes, you can cancel/resume your subscription with a click of a button, no questions asked. You don't even need to request something or send a message — you can manage your subscription in a completely autonomous way.

Our products verify the license validity on the 1st day of each month. At that date, you need to provide the license number to the product (with a simple copy/paste) so that it stays valid for the rest of the month.

We do not store payment credentials — they are encrypted and passed to Stripe or PayPal for a safe & secure way to purchase subscriptions on our site.

Please send us a message from the Contact page.

Release Notes

  • Added Confirmation Mode parameter

  • First Release of the indicator
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Quick Facts
Platform NinjaTrader 8
Category Indicator
Plan Required Premium
Latest Version v1.1.0.0
Last Updated 1 year ago
Downloads 392