Trigger Lines

This is a simple implementation of the trigger lines which can be used as a trend filter. The trigger lines are composed of a linear regression indicator (LinReg) and a signal line, which is calculated as the exponential moving average (EMA) of the linear regression line. Other than the below description, you may also review our Trigger Lines Indicator Spotlight (with video).

The Trigger Lines indicator for NinjaTrader 8

Indicator Description

The traditional approach for using the Trigger Lines to determine a trend is simply following the crosses. A LinReg indicator cross above the signal line, one may consider bullish scenarios. When it crosses below, one may consider bearish setups. The indicator allows to select a color for bullish and bearish conditions and shades the area between the trigger lines. Default values used for the periods are 80 for the LinReg indicator and 20 for the EMA. Other than the conventional crossover bias, a second trend definition includes a comparison between price and the Trigger Lines (Thrust).

With the Trigger Lines Thrust trend definition, the two Trigger Lines are considered as a band. The trend is positive when the price bars close above the band and negative when they close below the band. Possible trend changes can then be recognized in an earlier stage. Other than the close above / below the Trigger Lines band, additional conditions apply.

I order to establish a new uptrend, the following is required:

    • – Close above the band
    • – Median above the band (more than half of the candle body above the band)
    • – Close of the bar above the high of the previous bar
    • – Range expansion: Candle body must be larger than or the same size as the previous candle body (i.e. trend change invalidated in range contraction scenarios)

In order to establish a new downtrend, the following requirements apply:

    • – Close of the bar below the band
    • – Median of the bar below the band (more than half of the candle body below the band)
    • – Close of the bar below the low of the previous bar
    • – Range expansion: Candle body must be larger than or the same size as the previous candle body (i.e. trend change invalidated in range contraction scenarios)

Other Library indicators

The Trigger Lines should be used in combination with other tools for technical analysis, such as momentum oscillators, support / resistance and volume indicators. For momentum oscillators, you may review the Acceleration DecelerationAwesome OscillatorLBR 3/10 OscillatorSlow RSI or the TDI. The Indicator Spotlight newsletter reviewed the TDI indicator here. For support / resistance, you may consider using Fib retracement levels, using one of our Fibonacci retracement tools, such as the indicator plotting the Prior Day Fibonacci Levels. Our Indicator Spotlight newsletter previously looked at a trading strategy using Fibonacci Retracements. You may consider additional support resistance levels using the Average Range for a daily, weekly or monthly lookback period. This may for example be done using a ADR indicator, alternatively the Weekly Range Projections / Monthly Range Projections. The Indicator Spotlight furthermore reviewed the Average Daily Range Projections and the Daily Pivot Point levels. For volume you may consider Force Index or Relative Volume analysis. Our NinjaTrader Relative Volume indicator was discussed in our Indicator Spotlight. For instruments that lack reliable volume information (FX/Crypto currencies), you may consider analyzing Relative Ranges. Our Relative Range indicator was also reviewed in the Indicator Spotlight. Finally, you may consider managing positions by using the Chandelier Stop. Other trailing stop indicators are available from the Trailing Stops category.

Other than the Trigger Lines, our moving average category includes the ALMA, DWMA, Exponential Hull Moving Average, Holt EMA, Moving Average Wave, MA Cross or the Tillson T3. Additionally, you may want to review our Trend Analysis and Trend Filters categories, such as the ADXADXVMA Plus, Coral Filter, Directional Movement Index (DMI), Distant Coefficient Filter, MAAF, Efficiency RatioButterworth FilterGaussian FilterLaguerre Filter, Rainbow Filter, Supersmoother Filter and the Supertrend indicator.

The Trigger Lines indicator is available for NinjaTrader 8.