To display an Overlay Indicator, right-click the Chart Window and select Chart Overlays. Select the name of the Overlay Indicator that you would like to view from the dropdown menu. A checkmark will appear next to any indicators you have selected and all selected indicators will show directly on your chart, not in the indicator window. To remove an overlay indicator from your chart, click on the indicator in the dropdown menu again and the checkmark with disappear.

Right-Click Menu

Tick Style, Proportional Width, Autoscale Charts, and Show Buy/Sell Arrows are explained in the Chartbooks section of the Getting Started chapter.   If you select Chart Properties, the chart preferences will open in the Control Panel. You can use this to change how your chart, price bars, and rulers look. (See the Charting Preferences section of the Getting Started chapter.)   To view the preferences for one of your indicators, right-click the Chart Window and select Overlay Properties. Any overlay indicators you have displayed will appear in the menu to the side. Select the indicator you would like to modify, and the preferences will open in the Control Panel.

The Overlay Properties option will only appear in your right-click menu if you have an overlay indicator displayed.

Highlight On Screen Text and select if you would like to view indicator values on the chart window and where you would like them to be located on your chart.

Use Chart Overlays to display or remove individual Overlay Indicators.

The Apply Settings To All Charts and Save Settings As My Defaults options work just like the similar buttons in the Preferences section of your control panel. Apply Settings To All Charts will apply your selected settings on all open charts. Save Settings As My Defaults will save your current personal settings.

A unique use of fractal geometry and nonlinear dynamics is used to create the method of calculations for the Alligator Indicator. Used in combination with the Gator Indicator, the Alligator has proved to be effective at pinpointing large market trends.

Alligator’s Jaw (blue line): The Balance Line for the timeframe that was used to build the chart (13 period Smoothed Moving Average, moved into the future by 8 bars).

Alligator’s Teeth (red line): The Balance Line for the value timeframe of one level lower (8 period Smoothed Moving Average, moved by 5 bars into the future).

Right-click anywhere on the chart and go to “Overlay Properties.” Select Alligator from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Jaws, Teeth, Lips: Specify your periods and shift specifications.   Type: Select Simple, Linear Weight, or Exponential.   Data: Select Open, High, Low, or Close.   Jaws, Teeth, Lips: Choose the color, line style, and line thickness of your indicator line.

Bollinger Bands are a type of trading envelope. They are lines at an interval around the moving average. They consist of a moving average and two different standard deviations represented as a line above the MA (Moving Average) and a line below the MA. The line above is the MA plus two standard deviations; the line below is the MA minus two standard deviations. Bollinger Bands are used to determine overbought and oversold conditions and to project price targets.

John Bollinger created Bollinger Bands in an effort to gauge the volatility and condition of a market. These bands are used to determine the trading range and give an indication of when to buy and when to sell. Bollinger Bands are also used to indicate market volatility, the wider the bands the greater the volatility. Inversely, the narrower the bands, the lesser the volatility. By plotting two lines at an interval around a moving average, Bollinger bands give a good indication of market conditions and price relation. The moving average which the band is based on works as an indicator to confirm trade signals.

Calculate the moving average with this formula:

Subtract the moving average from each of the individual data points used in the moving average calculation. This gives you a list of deviations from the average. Square each deviation and add them all together. Divide this sum by the number of periods you selected.

A buy signal occurs when a chart bottom is below the lower band followed by a bottom above the lower band. A sell signal occurs when a chart top is above the uppermost band followed by another top that is below the upper band.

Right-click anywhere on the chart and go to “Overlay Properties.” Select Bollinger Bands from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Period: The number of bars used to calculate the study. John Bollinger, the creator of this study, states that those periods of less than ten days do not seem to work well for Bollinger Bands. He says the optimal period for most applications is 20 or 21. Default is 20. To add a displacement, add a second number in the period box (with only a space between the two numbers.)

Donchian Channels were created by Richard Donchian, an expert in trends. The DON is a simple trend breakout system. The channel works well in trending markets, but not as well in sideways moving markets.

Donchian Channels measure volatility by placing bands at a specified period deviation. These bands are charted two standard deviations from the market price. As the market price changes, the value of two standard deviations also changes. This value is what comprises the Donchian Channel’s band width, representing the expanding and contracting of the bands based on recent price volatility.

The calculation of the DON is here:

Right-click anywhere on the chart and go to “Overlay Properties.” Select Donchian Channels from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Donchian Period: Specify the number of days in a period. To add a displacement, add a second number in the period box (with only a space between the two numbers.)   Upper, Lower: Choose the color, line style, and line thickness of your indicator line.

Kelter Bands were developed by Chester Keltner and Modified by Linda Raschke. They are traditional moving average envelopes based on Exponential Moving Averages. The probability is that prices will remain within the channel, as with all band-type indicators. A break above the channel is an anticipation of higher prices. When prices close below the lower band, we anticipate lower prices.

The middle line (20 period EMA) in a rising market should provide support. In a falling market, the middle line should provide resistance. Keltner Bands, as with any moving average indicator, seem to work great in strongly tending markets, but not so well in sideways markets. Just like all trend-following systems, the Keltner Bands are not meant to spot tops or bottoms. Use the Keltner Bands in conjunction with other indicators such as RSI or MACD. Using it in combination with either of these will help provide verification of the strength of a market.

The calculation for the top, or Plus Band, is here:

The calculation for the bottom, or Minus Band, is here:

Right-click anywhere on the chart and go to “Overlay Properties.” Select Keltner Bands from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Period: Specify the number of days used. To add a displacement, add a second number in the period box (with only a space between the two numbers.)   Type: Select Simple, Linear Weight, or Exponential.   Band Calculation: Select Original or ATR and enter values of your own.   Upper, Middle, Lower: Choose the color, line style, and line thickness of your indicator line.

The moving average, or simple moving average, represents the average of the last several closing prices. The moving average is simple to compute, easy to understand, and reliable under tests. This simplicity is the strength of the moving average.

The basic moving average is computed the same as any other mathematical average. The most common way of determining the moving average of a market is to take the closing price over a certain number of days, add them together, and divide by the select number of days.

Moving averages are generally thought to be indicators of trend. For example, conventional interpretation is that once prices cross from below the moving average to above it, the trend is considered up. On the other hand, if prices go from above the moving average to below it, the trend of the market is considered down.

The purpose of the simple moving average is to track the progress of the trend. Moving averages can potentially keep you in the trend for a long time. The moving average gives you an indication of the trend being up (prices above the moving average) or down (below the moving average). However, the moving average gives you no indication of the length or duration of the trend.

Double moving averages use two different averages in tandem. The first average is generally a faster reacting average using a shorter period of time, usually 10 days. The second average is a slower reacting average that will indicate longer-term price movement.

Using these two averages together helps to alleviate whipsaws by giving a basis of comparison. The faster average breaking above the slower average is a buy signal, the faster average breaking below the slower average is a sell signal.

The system of triple moving averages is employed by plotting three different moving averages together. The first of these averages is a faster average that only looks at the short-term price direction. The second average is a medium average that reacts to a longer period of time, but not as long as the final average. The third average is the slowest to react, because it takes an average of the longest period of time.

A 10, 20, and 40 day moving average system would be considered a triple moving average. The first average, the 10-day, is the quickest to move when prices show a change. The second average, the 20-day, is the medium average that does not show change until the prices have moved for a longer period of time. Finally the slowest moving of the averages is the 40-day. This slow average will not indicate a difference until prices have made a significant move. Shorter-term moving averages, being more sensitive to changes in price, are said to follow the trend more closely. The middle or medium average would follow less closely and the slowest or least sensitive average would lag the most.

The calculation for the moving average is here:

Right-click anywhere on the chart and go to “Overlay Properties.” Select Moving Averages from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Line: Choose the color, line style, and line thickness of your indicator line.   Period: The number of bars, or interval, used to calculate the moving averages. To add a displacement, add a second number in the period box (with only a space between the two numbers.)   Type: Select Simple, Linear Weight, or Exponential.   Data: Select Open, High, Low, Close, Mean, Median, or Mode.

The Parabolic SAR, developed by Welles Wilder, creator of RSI and DMI, sets trailing price stops for either long or short positions. Also referred to as the stop-and-reversal indicator, Parabolic SAR is more popular for setting stops than for establishing direction or trend. Wilder recommended establishing the trend first, and then trading with Parabolic SAR in the direction of the trend. If the trend is up, but the underlying price drops back below the trailing PSAR indicator, then sell or liquidate your long position. If the trend is down, and the underlying price rises above the trailing PSAR indicator then buy or liquidate your short position.

Once the market establishes a direction, the initial SAR becomes the extreme price for the two intervals. The extreme price is either the lowest price or highest price for the two trading intervals. The short position uses the high, and the long position uses the low.

The calculation for the PSAR is here:

SARt: The stop and reverse price for the current interval.

Right-click anywhere on the chart and go to “Overlay Properties.” Select Parabolic SAR from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Initial, Additional, Limit: Specify the calculation number you would like each section of the indicator.   Style: Choose how you would like the indicator displayed. Select squares, crosses, dots, or lines.   Color: Select the color of the indicator.

Pivot points used to be referred to as "traders numbers" because of the popularity of these points amongst floor traders. The theory behind them is that markets tend to have overlap from one period to another. On most days, the daily high or low is within the previous day’s range, as with the previous week’s extremes, and previous month’s extremes. In this sense, pivot points are a counter trend indicator.

However, many traders believe that once one point is violated, the next point will be tested, making a violation of these support and resistance levels a clue in trend following. Though we cannot vouch for the truth of this statement, the popularity of pivot points amongst floor traders tends to make these points worth watching.

The uses of pivot points varies greatly by trader. The most common function of the daily pivot is as a guide. If prices are trading above the pivot point, then the trend is considered up. Traders may wish to take short-term positions on a violation of the daily pivot to the upside with an initial upside objective of the 1st resistance level. If prices stall or slow at the first resistance level, then aggressive traders may wish to take profits. However, if the first Resistance level is violated to the upside, then the market should go on to test the second resistance level. If prices have violated the first resistance level, then this level should act as support on future pullbacks, as should the pivot point.

The opposite is true for support levels. A violation of the daily pivot to the downside indicates that the daily trend is down, with a downside target being the first support level. If the market stalls, then traders may wish to take profits on short positions, or initiate long positions in anticipation of a retracement to the daily pivot. However, if the first support level is violated, the day is said to be a strongly down trending day, and as such should move down further to test the second support level. As with the resistance numbers, the support numbers, once violated, become resistance lines to trade with in the trend.

There are several methods used to determine the Pivot Point. We have included the three different formulas in Track ‘n Trade 5.0.

Right-click anywhere on the chart and go to “Overlay Properties.” Select Pivot Points from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Pivot Points: Check the boxes to view different support and resistance lines. Change the color, style, and thickness of the lines. Calculation: Select Traditional, Variation 1, or Variation 2. Display Settings: Check to display Historical, Daily, Weekly, or Monthly pivot points. Select if you would like to see the Moving average line and enter the number of price bars you would like to be used to calculate it. Font: Select the font, size, and color of the text. You can also choose to bold or italicize your text and change the background color.

Just as it is easier to ride a bike downhill than uphill, it seems prices fall faster than they rise. Due to this perceived quirk in pricing, the legendary market analyst, author, and seminar speaker, Jake Bernstein, developed the 10x8 moving average system.

This system uses two simple moving averages, but they are calculated in a slightly different manner than those traditionally used. The first moving average is a moving average of the daily highs, as opposed to that of the daily settlement. The second moving average is calculated using the daily lows.

The most basic use of the 10x8 Moving Average is to look for a breakout above the upper moving average to initiate a buy signal. When the daily settlement price exceeds the average high of the last 10 days, this indicator flashes a buy signal indicating that the trend of the market should be up.

Right-click anywhere on the chart and go to “Overlay Properties.” Select 10x8 MAC from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Display 10x8 MAC, 3x3 MAC: Check the boxes to display the lines you would like to see.   Line: Choose the color, line style, and line thickness of your indicator line.   Type: Select Simple, Linear Weight, or Exponential.   Data: Select Open, High, Low, Close, Mean, Median, or Mode.

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The Zig Zag Indicator acknowledges minimum price changes and ignores those that do not fit the criteria.

A Zig Zag set at 10% with OHLC bars would yield a line that only reverses after a change from high to low of 10% or greater. All movements less than 10% would be ignored. If a commodity traded from a low of 100 to a high of 109, the Zig Zag would not draw a line because the move was less than 10%. If the stock advanced from a low of 100 to a high of 110, then the Zig Zag would draw a line from 100 to 110. If the commodity continued on to a high of 112, this line would be extended to 112 (100 to 112). The Zig Zag would not reverse until the commodity declined 10% or more from its high. From a high of 112, a commodity would have to decline 11.2 points (or to a low of 100.8) for the Zig Zag to reverse and display another line.

Right-click anywhere on the chart and go to “Overlay Properties.” Select Pivot Points from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

% Change Sensitivity: Change the percent of calculation.   Line: Choose the color, line style, and line thickness of your indicator line.   Retracements Line, Alt: Choose the color, line style, and line thickness of the retracement lines.   Select Show Retracement Target, Show as Percent, Show Retracements, or Show Alternative Retracements to show percents, retracements, and alternative retracements.   Number of Alternative Lines: Enter the amount of alternative retracement lines you want to show on the chart.   Font: Select the font, size, and color of the text. You can also choose to bold or italicize your text. Select the checkbox next to Show Text to hide or show your text on the chart.   Choose when you want Buy/Sell Arrows to show and what color.