PureAlgo has developed a set of drawing tools to assist you with trading including the following: Anchored VWAP, Risk Reward PA, and Horizontal Ray. The package includes all of the tools and is priced at $10. 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 over a selected set of bars. 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. Trading is dynamic and we don’t always have the opportunity to select our exact entries. However we often know our target and stops. By using this tool, you can predetermine risk and reward and find the minimum entry that satisfies your required risk to reward. Anything less than 1.4x and I will pass on the trade if the stop or target don’t make sense given the setup. 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.