Dorschden Swing Trend Solver

This solver is under investigation…

We recently discovered this solver's output is not always correct. We currently consider it broken and are investigating for a fix in a future update.

The Dorschden Swing Trend solver uses price action and swing points to identify trend. The Swings Highs & Lows indicator is used inside this solver to identify when swing points are made. This solver will produce a Long output when higher lows (HL) and higher highs (HH) are detected, to identify an up trend. Alternatively, a Short output is produced when lower lows (LL) and lower highs (LH) are detected, to identify a down trend. Essentially, this solver is outputting the OverallTrend Dataseries from the Swings Highs & Lows indicator, which is the same as using the Swings Highs & Lows in the Threshold solver and selecting the OverallTrend output. See the Examples section below for an illustration.

Note that when the market exhibits an extreme expansion in price movement, such as a higher high (HH) followed by a lower low (LL), or a LL followed by a HH, the trend direction is unknown and the output will be zero until the next swing point is completed.

BloodHound v2

This section is specific to BloodHound v2. Scroll down for BloodHound v1.

Properties tab

This tab contains the essential settings for all nodes.

Modifiers

Click to see documentation

This section provides quick access to commonly used output modifiers.
Please note: The buttons only modify the individual instance of the selected node(s) on a Logic Board. Thus, the buttons are only visible when a node is selected on the Logic Board. The buttons are not available when a solver is selected in the Solvers panel, because the original solver's output can not be globally modified.
This behavior is consistent with adding a function node afterwards, so that the original solver's output remains unmodified elsewhere in the system. It is similar to having an SMA(50) on several charts. Changing the plot color on one chart does not modify the plot color on the other charts.

Enable button

Invert button

Swap button

Global Properties

These setting apply to all instances of the selected solver. Changing a setting in one of the instances changes the setting in all instances. If you only want to change one of the solvers, but not the others, you must make a copy of the solver. The copy will be a different solver, and a number will be added at the end of the name to differentiate it from the original.

Behavior

This option determines which outputs are calculated. Effectively turning off either the Long or Short output.

Evaluate

SwingTrend Parameters

Swing type

Swing Strength

This sets the sensitivity for identifying new swings. Typically use small values for lower time-frames, and larger values for higher time-frames.
IE: 1 is very sensitive and will create lots of small swing points. 7 is the default setting and is generally good for intraday charts. 14 is less sensitive and will identify larger swing points. For the Percent calculation type use much smaller values. See below.

Minimum value accepted: 0.00000001. The Percent calculation type will generally work best with a value below 1 (i.e. 0.25) for intraday charts.
Maximum value accepted: 1.79769313486232E+308. A more practical largest value to use is 25 for daily, weekly, or monthly charts.

Practical Values to Use
Intraday charts: Standard, Gann, or Ticks types is between 1 to 15. For Percent type is between 0.15 to 0.4.
Daily charts: Standard, Gann, or Ticks types is between 15 to 25. For Percent type is between 2 to 20.

Double Top/Bottom Threshold

Use Close prices

Trend Selection

Trend type

Overall Trend:
↗ A long trend is defined when one of the following occurs:
1) A higher low (HL) swing point followed by the high price breaking above the previous swing high (which means a higher high (HH) swing point is developing).
2) A double bottom followed by the high price breaking above the previous swing high (which means a HH swing point is developing).
3) A lower low (LL) is followed by a HH, and then a HL is established.
A long trend ends when the low price of a bar breaks below the previous swing low (which means a LL swing point is developing).

↘ A short trend is defined when one of the following occurs:
1) A lower high (LH) swing point followed by the low price breaking below the previous swing low (which means a lower low (LL) swing point is developing).
2) A double top followed by the low price breaking below the previous swing low (which means a LL swing point is developing).
3) A higher high (HH) is followed by a LL, and then a LH is established.
A short trend ends when the high price of a bar breaks above the previous swing high (which means a HH swing point is developing).

⇔ A neutral trend can occur when a HH swing point is followed by a LL swing point. Or, a LL is followed by a HH. Without a HL or LH, to confirm a HH or LL, a trend can not be confirmed.

This will be a +1 for an up trend, and a -1 for a down trend. A 0 (zero) means no trend direction.

Quick Trend:
↗ A long trend is defined when the high price breaks above the previous swing high, or a higher low swing point occurs.

↘ A short trend is defined when the low price breaks below the previous swing low, or a lower high swing point occurs.
A trend direction always exists.

This will be a +1 for an up trend, and a -1 for a down trend. A 0 (zero) means no trend direction was detected yet. This only occurs at the beginning of the chart before a trend direction is detected.

BreakOut Trend:
The trend changes when price breaks the previous swing high or low.

↗ A long trend is defined when the high price breaks above the previous swing high.

↘ A short trend is defined when the low price breaks below the previous swing low.
A trend direction always exists.

Options tab

This tab contains extra secondary settings common to all nodes.

Weight

Click to see the Weight documentation

This section is used to modify the node's final output value. It is only useful for designing fuzzy logic systems, or a fuzzy logic section of a system.
Please note: The Weight controls only modify the individual instance of the selected node(s) on a Logic Board. Thus, the Weight controls are only visible when a node is selected on the Logic Board. The controls are not available when a solver is selected in the Solvers panel, because the original solver's output can not be globally modified.
This behavior is different than BloodHound 1.0. In BH 1.0, the Weight controls modified the nodes output globally (every instance). This change in BH 2.0 adds more system design granularity.

Multiply Output: This takes the internal values (the Long and Short values determined via the Properties tab » Output Rules section) and multiplies them by this value. Note: the final output will not exceed a value of 1, as described in the Slider control below.

Slider control: The slider constrains the final output to a value of 0 to 1. The left side of the slider sets a minimum value that is output regardless if the solver condition is true or not. The right side sets a maximum value that is output. The output is capped.
e.g. Three indicator conditions are being checked, and thus three solvers are created. Only two out of the three indicator conditions are needed. An Additive logic node is used to add the solver's outputs together. Just two out of the three solvers need to add up to a value of 1. Therefore, the right slider (max output value) for all three solvers is set to 0.5. When two indicator/solver conditions are found, thus the outputs = 0.5, then the calculation, in the Additive node, is 0.5 + 0.5 + 0 = 1. A value of 1 means the two out of three condition is true.

Hedge Operation: This applies a mathematical formula to the internal value.

None: No modification is applied.
Very (square output): A squaring formula is applied. Output = value^² .
Somewhat (square root output): A square root formula is applied. Output = √value .

Description

This text area provides a place to write a full description of what the node is doing, used for, or what ever you want.
Note: The Description is global to all instances of the node. It is not applied individually to each instance as the Weight controls are.

Help tab

This tab displays the documentation page (from this web site) of the selected node.
Please note: NinjaTrader v8.0.26.0 or newer is required for the built in web viewer to work, and thus the documentation to be displayed.

Video Tutorial

This video is from our weekly Workshop titled Solvers 12-13, on Sep 26th, 2012.
For more benefit please watch in full screen mode, as this video is recorded in HD.
This video shows BloodHound v1, however the settings and usage are the same.

Examples

The screenshots below show BloodHound v1, however the settings and usage are still the same.

Example 1: The Basics

This demonstrates the basic function of the Dorschden Swing Trend solver. This Solver determines trend direction by comparing the current price to previous LowerHighs or HigherLows.

Add the Dorschden Swing Trend solver
Use the default settings

Notice how the trend cannot be determined until a new swing point is established.

Example 1: Changing Swing Sensitivity

This shows the change that occurs from changing Swing Sensitivity.

Add the Dorschden Swing Trend solver
Set Swing Sensitivity to 6

BloodHound v1

This section is specific to BloodHound v1. Scroll up for BloodHound v2.

Dorschden Swing Trend Solver

Parameters

Display

Behavior

Swing Parameters

Swing Sensitivity

Double Top/Bottom Threshold

Video Tutorial

This video is from our weekly Workshop titled Solvers 12-13, on Sep 26th, 2012.
For more benefit please watch in full screen mode, as this video is recorded in HD.

Examples

Example 1: The Basics

This demonstrates the basic function of the Dorschden Swing Trend solver. This Solver determines trend direction by comparing the current price to previous LowerHighs or HigherLows.

Add the Dorschden Swing Trend solver
Use the default settings

Notice how the trend cannot be determined until a new swing point is established.

Example 1: Changing Swing Sensitivity

This shows the change that occurs from changing Swing Sensitivity.

Add the Dorschden Swing Trend solver
Set Swing Sensitivity to 6

General

BloodHound

BlackBird

Other Indicators

Dorschden Swing Trend Solver

This solver is under investigation…

BloodHound v2

Properties tab

Properties tab

Output Modifiers