Market Efficiency

Market Efficiency is an OFL Study, created in the style of an Oscillator, that gauges the OrderFlow activity from both the
Bid and Offer side Volume. Bid and Ask Volume that results in an increase or decrease of Delta is visualized as an Efficiency
Moving Average and plotted together. As Efficiencies ‘Flip/Cross’ or ‘Pinch’ we can more accurately monitor rotations for
continuation or a directional shift. In addition to Efficiency lines, this tool also features Max/Min Efficiency Lines, Efficiency
Mid Lines, Efficiency Cross-up and Efficiency Trigger Lines.

Market Efficiency: Moving Average of Volume-Delta Ratio

Efficiency Mid Lines: The Midpoint of the Market Efficiency
Efficiency Min/Max Line: Previous Swing High/Low of the Market Efficiency
Efficiency Trigger Line: Average Look-back Market Efficiency to generate Delta
Efficiency Cross-up: Point that Market Efficiency crosses the Efficiency Trigger Line

The Market Efficiency indicator is to be calculated using a Volume Chart utilizing the Globex Open to CME Close timeframe.

Each product has a required Volume Setting provided below.

ES: 1300 Vol

NQ: 500 Vol
RTY: 175 Vol
CL: 375 Vol
GC: 135 Vol
UB: 175 Vol
ZB: 420 Vol

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

Configuring Market Efficiency 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

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

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.

For Market Efficiency, the following parameters are available:

The first three entries under Properties define the underlying chart that the indicator calculations are based on. The
settings shown are independent of your primary chart settings which is the chart that is shown on the chart window. In
this example, the primary chart is a time-based chart with each bar representing 1 minute of time (Figure 2).

The Calculation Chart is used internally by the indicator and is never visible on the screen. You are free to pick your
preferred chart type and period for the primary chart irrespective of the Calculation Chart. The indicator will use the
settings used for the Calculation Chart to perform the calculations and display the results on the primary chart at the
appropriate points. Please use the recommended OFL settings for the Calculation Chart 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. In the example shown, the Calculation Chart is a 500-Volume chart.

We strongly recommend that you always leave the checkbox for “Calculation bar break at EOD” selected to avoid
unpredictable outcomes due to variations in starting point on non-time-based charts.

Area Opacity modifies the level of transparency for the shading between the Bid Efficiency and Offer Efficiency plots.

In the Plots to Show section, select which Market Efficiency plots to display on the chart.

Using the settings available under the Plots sub-group, you may customize the appearance of all plots.

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 5

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/DvSRXxhSFG8

https://youtu.be/9zGz6NAKvwk

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