Expansion Contraction

The Expansion Contraction solver analyzes whether Input A and Input B are expanding away from each other, contracting toward each other, or are moving parallel with each other. Using the Rules window, the Long & Short output conditions can be independently customized for multiple conditions. This solver is new for BloodHound v2 only.

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

Input A

This is the first input data to be evaluated against Input B. Use the Type drop-down menu to select the data type.
The menu will change based on which data type is selected. Click on Type to see the various data types available and the corresponding documentation.

Click to see the Input » Type documentation

The Input section determines the data type to be evaluated. Use the 'Type' menu to select the data type. See below for detailed information on each data type.

Type: Fixed Value

Fixed Value

Fixed Value allows you to specify a single value that never changes, similar to the Threshold solver. This may be useful for instance when you require a fixed level or value to compare against, such as with the Comparison solver.
For example, detecting low volume bars. If 100 shares or less per bar is considered low volume, then 100 would be the fixed value to compare against Volume.
Note: Using Fixed Value does not make sense for solvers that only have one input. Such as the Inflection, Slope, Change In Slope, etc. solvers.

Type: Price

This option allows price data to be used in the solver. The price data can be shaped/manipulated by the various settings before it is used by the solver.

Custom Prices
SharkIndicators has custom system development prices that are very useful in reducing the number of solvers, and simplifying system logic, when evaluating the open and close (body) prices.
Body Top: Regardless of the bar direction, this returns the upper price of the candlestick body. Either the close or open price. Whichever is on top. e.g. For an up bar, the Body Top equals the close price.
Body Median: This returns the median price of the candlestick body. The formula is (Close + Open) ÷ 2.
Body Bottom: Regardless of the bar direction, this returns the lower price of the candlestick body. Either the close or open price. Whichever is the bottom. e.g. For an up bar, the Body Bottom equals the open price.

Price Type Long

Price Type Short

Lookback Period

Long Lookback Processing

Select how to process the price data in the Lookback Period. This process is used for calculating the Long output only.

Single Value: This returns the price from a historical bar referenced by the Lookback Period. No data processing is done. This makes the Lookback Period behave just like the Displacement parameter.

Average Values: This mode returns the average of the Price Type Long prices within the Lookback Period.

Max Values: This mode returns the highest selected price within the Lookback Period. It searches the Lookback Period historical bars and returns the highest value found. I.E. This is used when you want to use the highest High price of the previous 10 bars by setting Price Type Long = High and Lookback Period = 10.

Min Values: This mode returns the lowest selected price within the Lookback Period. It searches the Lookback Period historical bars and returns the lowest value found. I.E. This is used when you want to use the lowest High price of the previous 10 bars by setting Price Type Long = High and Lookback Period = 10.

Short Lookback Processing

Select how to process the price data in the Lookback Period. This process is used for calculating the short output only.

Average Values: This mode returns the average of the Price Type Short prices within the Lookback Period.

Max Values: This mode returns the highest selected price within the Lookback Period. It searches the Lookback Period historical bars and returns the highest value found. I.E. This is used when you want to use the highest Low price of the previous 10 bars by setting Price Type Short = Low and Lookback Period = 10.

Min Values: This mode returns the lowest selected price within the Lookback Period. It searches the Lookback Period historical bars and returns the lowest value found. I.E. This is used when you want to use the lowest Low price of the previous 10 bars by setting Price Type Short = Low and Lookback Period = 10.

Type: Volume

Volume will feed the current bar volume into the solver.
To evaluate the volume from a few bars back, use Indicator Value. Then select the VOL indicator, and use the Displacement setting.

Type: Indicator Value

Indicator

This is the default setting and most commonly used Input type. This allows the selection of any installed indicator that has one or more of the following output types; a Plot or Series<T>. A Plot is the plotted line or bar seen on the chart (e.g. the SMA line, RSI line, Volume bars, etc.), which always has a numeric value seen on the right or left edges of the chart. A Series<T> is not visible on a chart, but contains data like a plot and is readable by BloodHound. A Series<T> can contain the indicator’s main value, extra sub-data, or sometimes a signal of some kind. Note: Some NinjaTrader indicators are Not readable, per their design.
Tip: A signal value is typically +1, 0, or -1.
Technical note for programmers: BloodHound can read Series<T> data types Bool, Int, Double, and Long.

Select Indicator window

Clicking on the ellipsis button (to the right of the indicator) opens the Select Indicator window. This window is used to;
1) Select the indicator
2) Set the indicator properties
3) Select the Plot or Output you want the solver to analyze.

Search box: Typing the first three letters of an indicator will create a shorter filtered list of indicators to quickly find the indicator you are looking for.

Refresh Indicator List button: This button is only used once after a new indicator has been installed. It initiates rebuilding an updated list of indicators. If the newly installed indicator does not listed, please see the next section below. Also, a menu item to perform this same task has been added to the NinjaTrader Control Center » Help menu » SharkIndicators menu.

Add New button: Instead of double clicking on an indicator to add it, this button can be used.

Nest Input button: This provides a way to feed the output of one indicator in to the input of another indicator (e.g. Smoothing the CCI by nesting/feeding it in to the SMA indicator). Watch this video for more info on the process... How to Perform Indicator Nesting Within a Solver

Remove button: Use this to remove nested indicator from the list (in the bottom area).

Indicators Missing From the List
If an indicator is missing from the Select Indicator window, that means the indicator does not have a readable output or may have thrown an error when building the list. Or, the indicator may only draw information on the chart using custom graphics routines which are not readable.
In order for BloodHound to read 3rd party indicators the developer must follow NinjaTrader’s Best Practices for 3rd Party Developers > Expose Indicator States. This video will help you determine if your favorite 3rd party indicator has an output that is readable… How to analyze custom indicators in BloodHound.

Displacement

The Displacement parameter works the same way as the NinjaTrader Displacement parameter. It is used to analyze indicator values from previous bars back. On the chart, the Displacement moves the indicator plot forward X number of bars on to the current bar. Essentially, the same is occurring internally. the indicator value X number of bars back is moved forward on to the current bar. The Displacement operates on the chart/time-frame the solver is set to.
e.g. Setting Displacement to 5 will have the solver use the indicator value from the 5th bar back. In effect, this shifts the indicator plot from 5 bars back to the current bar.
i.e. Suppose you want to analyze an indicator’s value 5 bars ago. Set the Displacement value to 5 and the solver will always use indicator data that is 5 bars in the past.

Type: Swing Point Prices

Swing Point Prices uses the Swing Highs & Lows indicator plots for input price data. This is useful when you need to access the lowest low or highest high prices from the latest swing point.
You can add the bundled indicator Swing Highs & Lows to the chart to help you visualize the price data the solver is using.

Number of Swings

Swing type

Swing strength

Double Top/Bottom strength

Use Close prices

Long: Bottoms or Tops

Long: Widest or Tightest

Short: Bottoms or Tops

Short: Widest or Tightest

Type: Linear Regression Channel

Input B

This is the second input data to be evaluated against Input A. For documentation scroll up to section Input A.
Use the Type drop-down menu to select the data type. The menu will change based on which data type is selected.

Output Rules

Expansion/Contraction Settings

Click to see the Rules window Introduction

The Rules window provides a more natural way to define charting conditions (a.k.a. trading system rules), and allows advanced combinations of multiple rules/conditions in a single solver, replacing BloodHound v1 need for multiple solvers to do the same complex task.

Rules Window Components

The individual rules can be expanded open or collapse close by clicking a rule's title bar. The title bar is the horizontal area with the word 'Fixed' or 'Range' within it.

Add Rule menu(top left): This menu adds the selected rule.
A Fixed rule is most commonly used. It provides a simple comparison of the Input to a numeric value or Input B.
A Range rule compares the Input to a lower and upper range limit of values. Or, a ranged distance between Input A and Input B.
Tip: To use a Range rule instead of a Fixed rule, delete the default Fixed rule, and then add a Range rule.

Output Calculation menu(top right): This defines how the output is determined when two or more rules exist and at least two of the rules are true.
First: The first rule that is true, starting at the top of the list and working down, that output value is used.
Largest: The largest output value from all the rules that are true becomes the output value. This is for fuzzy logic systems.
Smallest: The smallest output value from all the rules that are true becomes the output value. This is for fuzzy logic systems.
Average: The output values from all the rules that are true are averaged together and becomes the output value. This is for fuzzy logic systems.
Addition: The output values from all the rules that are true are added together and becomes the output value. This is for fuzzy logic systems.

Settings window: This applies to the Range rule. It provides more detailed control over the values being evaluated.
Outside - Inside: The evaluation can be either Inside the lower and upper range or Outside that range.
Exclude - Include: Include is equivalent to >= or <=. It include the values in the evaluation.
Exclude is equivalent to > or <, no equal. The lower and upper range values are not included in the evaluation.
Fixed Output - Ranged Output: The 'Fixed Output' outputs a simple digital type of output. Either the output is 0 (no output) or the value on the far right (usually 1).
Selecting the 'Ranged Output' enables the fuzzy logic capability of the solver. Two Output fields become visible. When the input value falls between the lower and upper range values, the solver's output is calculated by linearly interpolating between the two Output values.

Delete button: This deletes the rule. The Undo button can be used to restore it.

Expansion Contraction Rules widow

Calculation Type:
Distance Delta: This is the most accurate method, but can not always be used. It calculates the distance from Input A to Input B to identify if the distance is expanding or contracting. The distance can only be calculated correctly when Input A & B are using the same Y-axis scaling. e.g. Both Input A & B indicator plots are on the price panel of the chart.
An example of what does not calculate correctly is if Input A is an SMA (based on the price panel), and Input B is the MACD line (which runs in its own sub-panel). The SMA and MACD use two different Y-axis scaling, thus measuring the distance between the two is meaningless.
Slope Delta: This method provides a universal way to identify expansion or contraction. It compares the slope of Input A to the slope of Input B to determine exp. or con. e.g. Using this method, the above example of the SMA vs. MACD can be calculated as accurately as possible for two different Y-axis scaling indicators.

Output Calculation:
See explanation above in the 'Click to see the Rules window Introduction" section.

Fixed Rules:
The Fixed rule identifies when the two Inputs are, expanding away from each other, contracting towards each other, or are parallel.

The name or value of Input A's & Input B's indicator, bar price, or numeric value. If Input A and Input B have the same name the designation '(A)' and '(B)' will be appended to differentiate the two inputs, as seen in the image above.

This menu selects the expand, contract, or parallel condition to be identified.
Expand identifies when the two Inputs are moving away from each other.
Contract identifies when the two Inputs are moving closer together.
Are Parallel identifies when the two Inputs are running parallel to each other.

③, ④, and ⑤ are combined together to define a minimum or maximum amount of expansion/contraction.
Tip: Whenever a setting is changed, the sentence above the settings is modified to describe the condition being identified.
e.g. Looking at the image above, if the Long rule was adjusted to a setting of SMA(A) & SMA(B) [ Expand ] by [0.5] [Points], it would identify when SMA(A) is moving away from SMA(B) by a minimum of 0.5 pts or more. Thus, the SMAs are spreading apart at a relatively moderate rate.

This determines whether a minimum or maximum rate of expansion/contraction is to be identified. This setting does not apply to 'Are Parallel', and is therefore removed when 'Are Parallel' is selected.
At Least sets a minimum rate of expansion/contraction.
At Most sets a maximum rate of expansion/contraction.

This is a numeric input field. This value, combined with the Measurement Unit ⑤, determines the amount of expansion/contraction.

This sets the Measurement Unit used for the minimum/maximum rate of expansion/contraction between the two inputs.

This sets the output value when the condition has occurred. A value of 1 (meaning 100% confidence) is typical for most systems. Only advanced users, building a fuzzy logic system, should use a smaller value.

Range Rules:
A Range rule is used to identify when the two Inputs are expanding or contracting within a certain range. i.e. The rate of expansion/contraction is between a minimum rate and maximum rate. ③ and ④ set the ranged rates of expansion/contraction.
Tip: Whenever a setting is changed, the sentence above the settings is modified to describe the ranged rates being identified.
e.g. Looking at the upper rule in the image below, the Long rule will output value ⑥ when SMA(A) is not parallel to SMA(B), but is expanding away up to a maximum amount of 1pt.

This menu selects the expand, contract, or parallel condition to be identified. 'Are Parallel' only applies to Fixed rules, and thus is not available for Range rules.
Expand identifies when the two Inputs are moving away from each other.
Contract identifies when the two Inputs are moving closer together.

This is a numeric input field, and sets the minimum value of expansion/contraction for the range being identified.

This is a numeric input field, and sets the maximum value of expansion/contraction for the range being identified.

This sets the Measurement Unit used for a minimum and maximum rate of expansion/contraction to be identified.

This sets the output value when the ranged condition has occurred. A value of 1 (meaning 100% confidence) is typical for most systems. Only advanced users, building a fuzzy logic system, should use a smaller value.

Two Output fields, ⑥ and ⑦, appear when the Ranged Output option is enabled in the Settings menu. Only advanced users, building a fuzzy logic system, should enable this option.

This sets the output confidence value when the minimum rate of expansion/contraction has occurred. If the value in ⑦ is 1 (meaning 100% confidence), then this value should be less. And, vice-versa if this value is 1.

This sets the output confidence value when the maximum rate of expansion/contraction has occurred. If the value in ⑥ is 1, then this value should be less. And, vice-versa if this value is 1.

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

Example: Identify When the Bar Length Increases/Decreases

Examples

Example 1A: The Basics

This example identify when the Bollinger indicator upper and lower bands are expanding away from each other. Both a Long & Short output is generated when the bands expand, because expansion or contraction is not identifying trend direction, but rather price volatility.

Input A & B Settings:

Set Input A to the Bollinger » Upper Band plot.
Set Input B to the Bollinger » Lower Band plot.

Rules window Settings:
Open the Rules window by clicking the ellipses button in section Output » Expansion/Contraction Settings.

Set up the Fixed rule as show below.

The chart shows when price volatility is increasing per the Bollinger bands. Note how the bands can expand or contract even though the bands are both sloping in the same direction.

Example 1B: Expanding MA's

This looks at expanding moving averages (MA), which like Example 1A is really identifying price volatility/expansion, but in a secondary manor can identify trend moves and continuations. Both a Long & Short output is generated when the MA's expand, because expansion or contraction is not identifying trend direction, but rather price expansion.

Input A & B Settings:

Set Input A to the EMA 20.
Input B is adjusted to the SMA 50.

Rules window Settings:
Open the Rules window by clicking the ellipses button in section Output » Expansion/Contraction Settings.

Set up the Fixed rule as show below.

The chart shows when price expansion is increasing per the two MA's. Note when the MA's have just crossed-over it is not a perfect solution, just as a MA crossover system is not a perfect trading system.

Example 2: Expansion Exhaution

This identifies extensive expansion between two moving averages (MA). It is very similar to Example 1B, but identifies extreme MA expansion, which can indicate the recent price move is over extended and exhausted. Both a Long & Short output is generated when the MA's expand, because expansion or contraction is not identifying trend direction, but rather price expansion.

Input A & B Settings:

Set Input A to the EMA 20.
Input B is adjusted to the SMA 50.

Rules window Settings:
Open the Rules window by clicking the ellipses button in section Output » Expansion/Contraction Settings.

Set up the Fixed rule as show below. Note, the Points value is set to 2.5.

The chart shows when price expansion, per the two MA's, has made an extensive move, and thus a period of consolidation may follow.

Example 3: MACD Expansion

This is similar to Example 1B, but uses the MACD indicator. The MACD is basically a dual moving average indicator packaged in a different format. When the MACD line is expanding away from the Average line, it can indicate a trend move or continuation. Both a Long & Short output is generated when the MACD lines expand, because expansion or contraction is not identifying trend direction, but rather price expansion.

Input A & B Settings:

Set Input A to MACD » MACD plot.
Set Input B to MACD » Avg plot.

Rules window Settings:
Open the Rules window by clicking the ellipses button in section Output » Expansion/Contraction Settings.

Set up the Fixed rule as show below.

The chart shows when price expansion is increasing per the MACD. Note when the MACD lines crossover it is not a perfect predictor of a trend reversal.

Example 4: Averaged Price Consolidation

This is the opposite of Example 1B. It identifies contraction between two moving averages (MA), which can coincide with price consolidation. The first input is a fast HMA of the median bar price to smooth out the jumpy nature of the closing bar prices. Both a Long & Short output is generated when the MA's contract, because expansion or contraction is not identifying trend direction, but rather price consolidation.

Input A & B Settings:

Set Input A to the HMA. Then nest Chameleon into the HMA as shown below.
Input B is adjusted to the SMA 50.

Follow the directions in the image to set up the HMA. Chameleon is used to feed the Median price as the Input Series of the HMA.

Rules window Settings:
Open the Rules window by clicking the ellipses button in section Output » Expansion/Contraction Settings.

Set up the Fixed rule as show below.

The chart shows the Exp/Con » Contraction mode is one alternative way to identify price consolidation.

General

BloodHound

BlackBird

Other Indicators

Expansion Contraction

Properties tab

Properties tab

Output Modifiers