TriggerCharts Altimeter – Overview
TriggerCharts – Altimeter displays a real-time representation of developing balance and imbalance areas by measuring volume-at-price, a statistical method for aggregating trading data that has its roots in Auction Market Theory and Market Profile®. Altimeter “profiles” are displayed as a series of three horizontal lines.
The profiles are calculated based on the price action from the previous profile and new profiles are derived from a proprietary swing and momentum algorithm that actively calculates the next Altimeter profile.
When price is trading inside the Altimeter profile, it depicts an interim state of market balance, an area of trade that is deemed fair to both sides. New profiles form after the market moves away from balance to imbalance when new valuations are detected from market data. When price goes into imbalance, either a new set of Altimeter profiles will form or price will be pulled back into the existing profiles.
- Specifically designed for profiling securities that have a volume component. However, if no volume exists, as in the case of currencies, the indicator will shift to a time-at-price algorithm
- Altimeters are usable on all time frames
- Use to identify low risk, high probability areas to trade while measuring relative volatility
TriggerCharts Altimeter – Applications
- When price is bracketed inside an Altimeter profile, the top line is considered a supply area (resistance) and the bottom line is considered a demand area (support).
- When price moves outside the top of an Altimeter profile (a) a breakout has occurred; (b) the market bias is directional to the upside; (c) and the relative vertical speed of movement through price levels will likely increase.
- When price moves outside the bottom of an Altimeter profile (a) a breakdown has occurred; (b) the market bias is directional to the downside; (c) and the relative vertical speed of movement through price levels will likely increase.
- When breakouts and breakdowns occur above and below an Altimeter profile, there is a high probability that the new directional move will remain intact until a new Altimeter profile appears.
- Previous Altimeter profiles to the left in a chart are support or resistance areas where the market will either pause and reverse—or pause, consolidate, and then resume the current directional move.
- Altimeter profiles that are narrower (top to bottom) are relatively lower volatility states and provide the potential for a lower risk entry opportunities as contrasted to wider Altimeter profiles which indicate relatively higher volatility states.
- When price is trading inside an Altimeter profile, we look to buy the lows of the range and/or short the highs. To improve trading odds in this situation, give directional preference to the next one or two higher time frame trends.
TriggerCharts Altimeter – Configurable Inputs
| MinSignal_123 | Sets the signal strength to be considered when forecasting market swings. 1 = weak; 2 = medium; 3 = strong. Default = 2 |
| RSILength | Sets the look back period for the momentum oscillator from which swings are derived. Default = 7 |
| MapLength | Sets the number of bars of data used to create the parameters of the Altimeter profile. Default = 7 |
TriggerCharts Altimeter – Display Information
- Top line indicates the unfair high area – Lift/Top
- Center line indicates the Point of Control (POC) Cruise/Control
- Bottom line indicates the unfair low area Stall/Bottom
To view configurable inputs within TradeStation:
- Right-click within the chart where the indicator is present and choose “Format Analysis Technique”
- Select the appropriate indicator and choose “Format”
- Under the “Inputs” tab is where you will find the “Configurable Inputs”
- Under the “Color” tab is where you will find the ability to customize the color display of the indicator.