PureAlgo has developed a set of drawing tools to assist you with trading including the following: Anchored VWAP, Risk Reward PA, Horizontal Ray, and Quick Template Menu Add-On. The package includes all of the tools and is priced at $20. Examples can be found in the chart below.
The Anchored VWAP drawing tool calculates VWAP per bar based on the bar volume and closing price (or high / low, hlc/3, ohlc/4) over a selected set of bars. It has 2 sets of standard deviation lines you can add to the indicator. It can be especially helpful to observe market reactions after a news event. Once volatility returns to normal and the market establishes a direction, the Anchored VWAP will typically hold.
The Risk Reward Tool is similar to NT8’s built-in tool, but it allows you to move each leg independently to determine reward targets based on risk. This is the most important tool in my discretionary trading, Lance Breitstein also talks about this extensively. Trading is dynamic and we don’t always have the opportunity to select our exact entries. However we often know our win rate, target, and stops. By using this tool, you can predetermine expected value (EV), risk and reward, and find the an entry that satisfies your required trading statistics to make your trade profitable. Personally anything less than a risk / reward of 1.4x and EV of 1.1, I will pass on the setup given the win rate %, stop, or target. This tool can also help you understand how much you need to risk and how much reward you need to justify a trade and determine the appropriate trade size.
The Quick Template Menu Add-on allows you to quickly change templates of drawing tools with a single right click, rather than the 7 clicks it currently takes to change a drawing tool template in NT8. This is helpful to save time while getting ready for the trading day, marking areas of interest, and identifying opportunities.
