Auction Bars

Auction Bars and Reversal Patterns

The Auction Bars indicator identifies higher timeframe ranges, displayed as Auction Ranges. These ranges display the current market value area of the ongoing auction. The accompanying congestion zones work as support / resistance where spike and reversal patterns frequently plot. You may register for FREE trial anytime.

Indicator Price $ 295.00

Indicator Description

The main idea of the Auction Bars is to identify sudden shifts in value, isolating reversal patterns and breakout bars. Typically, markets display temporary imbalances that lead to a sudden increase or decrease in price. For a brief moment the market will know where it is heading. But then the sudden move stops and the market returns back to a bipolar mode.

You will now see tests of the new price levels, until a new sudden move breaks the range again. Accordingly, this indicator identifies higher timeframe ranges, i.e. Auction Ranges, that represent the current market value area. The accompanying congestion zones work as support / resistance where spike and reversal patterns frequently plot.

The Auction Bars reversal patterns display as candidate around the current Auction Ranges. A pattern will confirm once price action breaks the spike/reversal high/low level. The default confirmation requires a price one tick above the high of a key reversal or spike bar up candidate. Opposite, confirmation requires at least one tick below the low of a key reversal or spike bar, for a down candidate.

Customizing Auction Bars Setups

The Auction Bars come with several additional filters, allowing you to customize trade setups according to your risk preference. For example, a key reversal or spike pattern must also set preliminary swing high or low and you may define the swing strength period accordingly. Also, you’ll want to see price pattern candidates accompanied by significant range or volume, (narrow range and low volume key reversal and spike bars are eliminated). Furthermore, one may also specify that key reversal or spike bars should only appear outside the auction range, alternatively at the auction range or mid-range.

We recommend applying additional price benchmarks as as filters for the Auction Bars. Tests show that support and resistance indicators, such as VWAPsPivot Levels and the Opening Range can be combined with the Auction Ranges to improve probabilities.

Available for NinjaTrader 7 and 8