TradeStation Help

Setting the Scaling of an Indicator

When you apply an indicator to a chart, you can choose to have it overlay the price data or place it in a separate subgraph. Your choice will depend on the indicator, and what it is designed to calculate. If the indicator values fall within the same range as the price data, you should overlay it on the price data. If they do not, you should plot it in a separate subgraph.

For example, the Moving Average, Bollinger Bands, and Parabolic indicators use the same scale as the price data and are therefore designed to overlay the price data. Visually, they are easier to interpret when they are overlaid on the price data. On the other hand, indicators such as oscillators return values completely different from the price data, and therefore, they are designed to plot in their own subgraph using either automatic or user-defined scale range settings. For example, the RSI Indicator returns values between 0 and 100; therefore, it is displayed in a separate subgraph with a user-defined scaling of 0 to 100. There is no point to or value in overlaying the RSI Indicator over the price data.

The indicators have default format settings, including where they are placed and how they are scaled. You should use the default settings and change them only if you are using the indicator in a different way than it was originally designed. Choose any the automatic or user-defined scale range settings as appropriate. You can also specify an scale type of either Linear, or Semi-Log.

Scaling & Axis Type of an Indicator as it is applied to a Chart

If the Prompt for Format check box in the Insert Analysis Techniques dialog is selected when applying an indicator, you can edit the indicator before it is applied to your chart. The Format Indicator [indicator name] dialog will open when you click OK in the Insert Analysis Techniques dialog.

  1. From the Format Indicator dialog, click the Scaling tab. The Format Analysis Technique - Scaling dialog is displayed.
  2. Select the desired format settings you want to use for this instance of the indicator. 
  3. Click Default to use the selected scaling and axis type options as the new default settings when this indicator is applied to other charts.
  4. Click OK when finished.

The indicator scaling options will not affect the scaling for the price data to which your indicator is applied.

Scaling & Axis Type of an Indicator after it is applied to a Chart

  1. From the Menu bar, click Format > Analysis Techniques and select the Analysis Techniques tab. The Format Analysis Techniques & Strategies dialog will be displayed.
  2. Select the indicator to modify.
  3. Click Format. The Format Indicator dialog is displayed.
  4. Click the Scaling tab.
  5. Select the desired format settings you want to use for this indicator. 
  6. Click Default to use the selected scaling and axis type options as the new default settings when this indicator is applied to other charts.
  7. Click OK, click Close.

You can also edit an indicator already applied to a chart by double-clicking the indicator or select the indicator and click Format Selected [indicator name] from the shortcut menu.