Buy/Sell Zones

What are they?

The Buy/Sell Zones are an adaptive approach to expansion and contraction within market rotations. Each rotation provides
an area of interest for either rebid (buy zone) or reoffer (sell zone), where those participants need to engage in order to
protect the possibility of further extension. This approach allows you to trade WITH the market trend for continuations,
target extensions for profit taking, or position for reversion of price.

Usage and Settings

The Buy/Sell Zones are utilized as areas of interest where the participant will then gauge the offer or bid activity for entry.
In these zones, you will need to watch for possible absorption or initiation. Upon entry, they provide guidance for areas
of stop placement and well-defined risk, thus avoiding the fear of missing out and allowing the individual to trade rotations
with the established trend. The suggested settings are provided in the Default fashion, but can be adapted toward the
product that the user actively trades.

Nuances
These areas of interest allow for customization within the tool itself. Our default settings are based upon our team's
experience but can be altered to fit your trading timeframe needs. Since the market tends to spend a higher percentage
of sessions in rotation, they offer an optimal area to gauge tape entry and risk management. During times of higher
volatility, it is suggested not to utilize reversion methods for your trading practices. These periods can be priorly
determined by contraction of ranges which would proceed trend type activity.

Combining with other tools

Combined with other tools the Buy/Sell Zones give you an excellent understanding of the market structure and spatial
awareness. If the user finds that a buy zone is matched with the Job Pinch and EAD signal, the strength of the signal
provides higher probability due to the overlap of activity.

Buy/Sell Zones - Deep Dive

Structure precedes execution. With that being continually said, the Buy/Sell Zones are a short term adaptive structural
component of the OFL system that provide immediate response to areas of potential engagement. Within these zones it
is ideal to see execution tools fire to provide information that the tape is also engaging the level.

As for the settings, you are able to customize the rotation value. The user is able to sit back and not get lost in the fear of
missing out, as the planning for the next rotation prints live with each scenario.

Understanding the day type will allow the user to engage at a frequency appropriate to the current environment. In a
rotation or mean reversion type auction, the Buy/Sell Zones offer the ability to judge when the trade is wrong or potentially
continuing in the dominant direction. As for trend type days, the user is actively able to engage with the trend at hand
and benefit with the appropriate extensions.

Upon entering zones, the EAD and / or Pinch will provide an executional trigger that is strengthened when matching with
a pivot or target from pivot.

Copyright © 2022 OrderFlow Labs LLC (orderflowlabs.com). All rights reserved.

Configuring Buy/Sell Zones on NinjaTrader
To load the OFL NinjaTrader indicators, either go to an existing chart window or open a new chart. To open a new chart,
go to the NinjaTrader Control Center window, press New and select Chart.

Figure 1

In the Data Series dialog box, enter the name of the instrument you wish to trade or select it from the dropdown menu.

Figure 2

Select your chart type and value, the number of days you wish to load and make any other updates you wish to make and
press ok.

On the chart window, click the Indicator button or press CTRL-I to bring up the indicator dialog box.

Figure 3

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Under the list of available indicators, double click the OFL folder, select the indicator and click add.

Figure 4

If this is your first time bringing up this indicator, this will load all the default values under Properties. Make your desired
changes to the list of available parameters.

Copyright © 2022 OrderFlow Labs LLC (orderflowlabs.com). All rights reserved.

For Buy/Sell Zones, the following parameters are available:

• Rotation Size (Points):

This value selects how large a move in one direction has to materialize before a retracement is evaluated. This value will
depend largely on the instrument you trade, price ranges and volatility.

If you choose a Rotation Size that is too large or Data Series with a very low values, you may get the following error
message, which indicates the algorithm could not converge on a Buy/Sell Zone within a reasonable number of bars.

To eliminate this error, either lower the value for the Rotation Size or increase the timeframe for your primary chart data
series. For example, if you are using 256-Tick for your primary data series, change to 512-Tick or 1024-Tick. If you are
using Renko bars, then increase the Renko brick size.

• Number of Valid/Invalid Zones:

These two parameters set the maximum number of zones of each type that will be displayed on the chart. Invalid zones
are those that price has completely crossed through. Invalid zones will get clipped, while valid zones will continue to
extend until they are invalidated and clipped.

Figure 5

• Erase Invalid Zones

Selecting this setting will cause zones to get erased once they have been invalidated (price crossed both edges of the
zone).

Copyright © 2022 OrderFlow Labs LLC (orderflowlabs.com). All rights reserved.

• Draw Zone Midline

This setting will draw a line centered in the middle of the zone.

• Show Zone Prices

This setting will enable the display of zones’ upper and lower prices on the chart.

• Zone Price Text Font Size

If Zone Prices are enabled, this setting will adjust the size of the zone price text.

• Buy Zone Percent / Sell Zone Percent

The two percentage values indicate the percent retracement of price for the two edges of any zone.

• Buy Zones / Sell Zones Appearance Settings

Various settings are available to customize the appearance of the Buy/Sell Zones. These settings are grouped under Buy
Zones and Sell Zones subgroups under Indicator Properties.

Please use the recommended OFL settings for the instrument that you are planning to trade. The most up to date list
of recommended settings for all OFL tools for various instruments can be found on the OFL Discord server.

Using Templates
If you are planning to load the same indicator on additional charts with the same custom settings, you may save your
customizations into a template. Click “template” in the bottom right corner of the Indicator Properties dialog and then
Save. In the Template dialog box, either enter the name for your template and click Save or, select “Save as Default”.

If you select “Save as default”, this will save your custom settings into the default settings for the chosen indicator. By
doing this, next time you add this indicator on a new chart, it will be loaded with your custom settings so you won’t need
to perform your customization steps again.

Update or Remove
To update your preferences, you may go back to the indicators dialog box and make any changes, and press ok.

To remove the indicator from your chart, go back to the indicators dialog box, select the indicator from the list of
Configured indicators, click remove and then press OK.

Copyright © 2022 OrderFlow Labs LLC (orderflowlabs.com). All rights reserved.

 Figure 6
Disclaimer
The OFL NinjaTrader tools are currently supported on NinjaTrader version 8 with Lifetime License running on Microsoft
Windows. None of the OFL NinjaTrader tools are designed to work with the NinjaTrader Strategy Analyzer or other third-
party automation tools. Additionally, OFL NinjaTrader tools are not designed to be called from other NinjaTrader
indicators or strategies. OFL NinjaTrader tools are designed for graphical display on a chart, and for visual interpretation
of Price Action or Order Flow. These tools are not guaranteed to generate the expected results if they are used in any
capacity other than displaying on a chart for visual interpretation.

Additional Resources
https://youtu.be/9vD7RyAADZE

Copyright © 2022 OrderFlow Labs LLC (orderflowlabs.com). All rights reserved.