Download as pdf or txt
Download as pdf or txt
You are on page 1of 21

ARC_SoundWave

Indicator User Manual NT8

“AudioVisual Orderflow”
Software User Agreement & Product Disclaimer
IMPORTANT: PLEASE READ THIS AGREEMENT CAREFULLY BEFORE CONTINUING WITH THE INSTALLATION
PROCESS OF THE SOFTWARE ("THE SOFTWARE"). BY INSTALLING THE SOFTWARE, YOU AGREE TO BE
BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS OF THIS
AGREEMENT, DO NOT INSTALL THE SOFTWARE.

1. License. If you have purchased a license to the Software, ARC-AI grants you a non-exclusive right and
license to use the Software and the related documentation (the "Documentation") as set forth in this
Agreement. You may use the Software on a single computer. You may also use the Software on a
second (portable or home) computer so long as only one copy is used at a time. You may make a single
copy of the Software for backup and archival purposes only provided that any copy must contain all
proprietary notices included in the original. You may use the Documentation to assist in your use of the
Software. If you download the Software without physical delivery of Documentation, you may review
the Documentation online, but you may not make further copies of the Documentation. You own the
media on which the Software is recorded, but not the Software itself or any copy of it. This license is
not a sale of the original or any copy of the Software.

2. Copying, Transferring or Modifying Software. The Software contains copyrighted material, trade secrets
and other proprietary intellectual property. You may not permit concurrent use of the Software unless
each user has an applicable license. You may not permit other individuals to use the Software except
under the terms listed above. For the purposes of protecting ARC-AI trade secrets, you may not
decompile, disassemble, reverse-engineer or otherwise display the Software in human-readable form.
You may not modify, translate, rent, lease, distribute or lend the Software, and you may not sell to
others the right to use the Software on your computer. You may not remove any proprietary notices or
labels on the Software. You may not copy, transfer, transmit, sublicense or assign this license or the
Software except as expressly permitted in this Agreement.

3. Term. If you have purchased a license to the Software, this Agreement and license are effective from
the time you accept the terms of this Agreement until this Agreement is terminated. You may
terminate this Agreement at any time by destroying all copies of the Software. This Agreement will
terminate immediately and without further notice if you fail to comply with any provision of this
Agreement. All obligations of confidentiality and restrictions on use, and all other provisions that may
reasonably be interpreted to survive termination of this Agreement, will survive termination of this
Agreement for any reason. Upon termination, you agree to destroy all copies of the Software. If you
have obtained an evaluation copy of the Software, and have not purchased a license to the Software,
this Agreement and license are effective for a period of thirty (30) days from the date of installation of
the Software.
4. Warranty Disclaimers. THE SOFTWARE AND THE DOCUMENTATION ARE PROVIDED "AS IS" AND
WITHOUT WARRANTIES OF ANY KIND, EXPRESS, STATUTORY OR IMPLIED, INCLUDING, BUT NOT
LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
AND NON-INFRINGEMENT. THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE
SOFTWARE AND THE DOCUMENTATION IS WITH YOU. SHOULD THE SOFTWARE OR THE
DOCUMENTATION PROVE DEFECTIVE, YOU (AND NOT ARC-AI)

ASSUME THE ENTIRE COST OF ALL NECESSARY SERVICING OR REPAIR. ARC-AI DOES NOT WARRANT
THAT THE FUNCTIONS CONTAINED IN THE SOFTWARE WILL MEET YOUR REQUIREMENTS OR OPERATE
IN THE COMBINATION THAT YOU MAY SELECT FOR USE, THAT THE OPERATION OF THE SOFTWARE WILL
BE UNINTERRUPTED OR ERROR FREE, OR THAT DEFECTS IN THE SOFTWARE WILL BE CORRECTED. NO
ORAL OR WRITTEN STATEMENT BY ARC-AI OR BY A REPRESENTATIVE OF ARC-AI SHALL CREATE A
WARRANTY OR INCREASE THE SCOPE OF THIS WARRANTY. Notwithstanding the above, you may have
certain warranty rights which vary from state to state and which cannot be disclaimed by contract. Any
warranties that by law survive the foregoing disclaimers shall terminate ninety (90) days from the date
you received the Software as shown by your receipt. Some states do not allow limitations on how long
an implied warranty lasts, so the foregoing limitation may not apply to you if prohibited by law.

5. Limitation of Liability. YOUR SOLE REMEDIES AND ARC-AI’ ENTIRE LIABILITY ARE SET FORTH ABOVE. IN
NO EVENT WILL ARC-AI BE LIABLE FOR DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES
RESULTING FROM THE USE OF THE SOFTWARE, THE INABILITY TO USE THE SOFTWARE, OR ANY DEFECT
IN THE SOFTWARE, INCLUDING ANY LOST PROFITS, EVEN IF THEY HAVE BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE. IN NO EVENT WILL ARC-AI’ TOTAL LIABILITY TO YOU FOR ALL
DAMAGES, LOSSES, AND CAUSES OF ACTION (WHETHER IN CONTRACT, TORT, INCLUDING NEGLIGENCE,
OR OTHERWISE) EXCEED THE AMOUNT YOU PAID FOR THIS PRODUCT. SOME JURISDICTIONS DO NOT
ALLOW THE EXCLUSION OR LIMITATION OF RELIEF, INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO
THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. You agree that ARC-AI will not be
liable for defense or indemnity with respect to any claim against you by any third party arising from
your possession or use of the Software or the Documentation.

6. Export Control Laws. You agree to comply with all laws, rules and regulations applicable to the export of
the Software or the Documentation. Specifically, you shall not export, re-export or transship the
Software or the Documentation, or the direct product thereof, in violation of any United States laws
and regulations which may from time to time be applicable. None of the Software or underlying
information or technology may be downloaded or otherwise exported or re-exported (i) into any
country to which the U.S. has embargoed goods; or (ii) to anyone on the U.S. Treasury Department's list
of Specially Designated Nationals or the U.S. Commerce Department's Table of Denial Order. By
downloading or using the Software, you are agreeing to the foregoing and you are representing and
warranting that you are not located in, under the control of, or a national or resident of any such
country or on any such list.

7. Government Restricted Rights. The Software has been developed at private expense and is "commercial
computer software" or "restricted computer software" within the meaning of the FARs, the DFARs, and
any other similar regulations relating to government acquisition of computer software. Nothing
contained herein will be deemed to grant any government agency any license or other rights greater
than are mandated by statute or regulation for commercial computer software developed entirely at
private expense.
8. Entire Agreement. This Agreement is the complete agreement between ARC-AI and you and supersedes
all prior agreements, oral or written, with respect to the subject matter hereof. If you have any questions
concerning this Agreement, you may write to ARC-AI, Customer Service, support@architectsai.com.

U.S. Government Required Disclaimer - Forex, futures, stock, and options trading is not appropriate for everyone.
There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or
methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation
or implication is being made that using this methodology or system or the information in this letter will generate
profits or ensure freedom from losses.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN
ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE
TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF
ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE
ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS
BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED
IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL
FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES, STOCKS,
FOREX, OPTIONS OR ANY KIND OF OTHER TRADING PRODUCTS CAN BE SIGNIFICANT. YOU SHOULD THEREFORE
CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION
SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH
ADEQUATE RISK CAPITAL.
Soundwave Overview

The ARC_Soundwave software is a Ninjatrader indicator that provides an audible and visual representation of realtime
orderflow when trading financial instruments. Traders understand the importance of order execution activity but often
lack efficient ways to monitor real time data and make critical time-sensitive trading decisions. Observing the Time and
Sales window (often referred to as the “Tape”) reveals that the pace of transactions (“flow rate”) is simply too fast to
be able to interpret in any meaningful way. What is not immediately obvious is that within that high flow rate there can
be dramatic changes in the pace of activity from one moment to the next. It turns out that this is crucial information
that can really help with trade timing no matter what trading strategy you use.

The only way that price can move is for a transaction between a buyer and a seller to take place. When there is very
little activity the market price changes slowly. On the other hand, when there is a very high volume of transactions in a
short period of time, it means that something important is happening and it may be time to take action. It can be due
to a news shock or anything else that causes a flood of orders hitting the Tape. What is needed is a simple way to quickly
and easily comprehend these changes in real time without distracting your focus. This is the main purpose of the
Soundwave software.

One of the best ways to perceive real time spikes in the orderflow rate is through sound. If Orderflow was an automobile
engine, the pitch and volume of the engine would be very low at slow speeds. Conversely, at 100 miles per hour the
sound coming from the engine would be louder and have a higher pitch. Soundwave simply converts the speed of the
Tape into sounds in a similar fashion. In this way, you never lose focus on your strategy and can simply “hear” the pace
of the market. When spikes occur, you know that it may be time to act.

Just as an automobile has a speedometer in the dashboard, the Soundwave software also provides a visual
representation of the speed of the Tape in the form of a Graph Box which shows the speed of the Tape updating in real
time. This graphic is designed to make it very easy to “see” what is happening while you are also “hearing” it. The
combination of audible and visual cues is a very effective way to receive critical information instantly while focusing on
your trading chart.

SoundWave Graph Box

Besides producing sounds, the Soundwave software displays an Orderflow Graph Box which shows the speed of the
Tape for up to 8 instruments simultaneously:

Note: The number of instruments can be greater than 8 by simply using multiple instances of the software.

The horizontal histograms reflect the pace of market for each instrument. The hash marks represent the Threshold at
which the pace of orders is considered elevated and warrants attention. When the histogram expands and crosses the
hash mark, 2 things happen: First, a sound is heard which corresponds to the elevated activity. Second, the color of the
histogram changes from a muted color to a bright color. In this way, you have both a visual cue and a sound alerting you
to the spike in activity. If the pace continues to increase, the sound will become louder and also be at a higher pitch. If
the pace keeps increasing, it will max out within the Graph Box and will produce a more intense sound. When the pace
slows down, the colors become muted again and the sound disappears.

Here is a view of the Graph Box where some instruments are elevated with sounds being heard (shifts to the right when
Buyers dominate, shifts to the left when Sellers dominate):

Notice that the colors are brighter when the Threshold marks (yellow vertical dashes) are exceeded.

Here is a view of the Graph Box when all instruments are maxing out audibly, with the first 3 rows being dominated by
Buyers and the last 5 rows being dominated by Sellers:

Even if you were not watching the Graph Box, you would know when activity spikes because you are hearing it. However,
having the extra benefit of the visual Graph Box makes the Soundwave software very useful for any trader.
Realtime versus Historical Activity

The Graph Box shown in the previous section only reflects the current (in the “now”) pace of activity. The value of the
Graph Box is that it updates in real time along with the sounds being heard so you know what is happening in the
current moment. However, it does not show any historical patterns which can also be very useful. For this reason, the
Soundwave software also includes a historical measure of the pace of activity which takes the form of a histogram in a
subpanel of a price chart. This is actually a separate indicator called the Soundwave Engine and it is included with the
software. It uses the exact same algorithm as Soundwave but instead displays it historically. By observing the subpanel
along with the corresponding price action, you can gain tremendous insights regarding how to customize the sensitivity
settings of the tool for each instrument (see Sensitivity Settings section below).

Here is an example of the Soundwave Engine indicator applied to a price chart:

The histograms in the subpanel show the pace of activity for each price bar. You can see how price reacts when the pace
of activity spikes. The orange bars behind the histograms represent the Threshold that must be exceeded for the
Soundwave indicator to generate a sound. In the Soundwave Engine indicator, you will also see a racing stripe extending
vertically wherever the Threshold is exceeded making it quite easy to correlate price action with sudden spikes in the
“flow rate”.

Some traders will use the subpanel on their trading chart. Others will rely on the Graph Box and the sound generated
by the Soundwave indicator and only use the subpanel for backtesting and strategy development. The main point here
is that you have complete flexibility to use the audible and visuals features in a way that best suits your needs.

Customizable Sensitivity

Every market is different. Soundwave includes the ability to adjust the sensitivity for each instrument that you want to
monitor. In order to understand how the sensitivity settings work, we must first explain how the speed of the Tape is
measured and what constitutes an elevation of activity worthy of taking notice. There are 3 elements to the
measurement process:

• Lookback – This is the time window for measuring Orderflow. Just as an automobile’s speed is measured in
miles per hour, we measure the pace of the market in the number of transactions that occur over a fixed period
of time (measured in seconds). This is updated in realtime as each tick comes in.
• Smoothing – This is a way to smooth out the measured pace of activity over a longer period of time. This
smoothed level is used as input in the construction of the Threshold which, when exceeded, triggers a “Signal”
(i.e. the Sound being played).
• Sensitivity – This is an adjustment to the smoothed activity measure that works like a multiplier when
determining the Threshold for a generating a sound. The Sensitivity measure can take a value anywhere
between 0 to 100. A value of 0 means no multiplier at all such that the Threshold for sound equals the smoothed
rate. A value of 100 means a large multiplier causing a high Threshold such that only the most extreme spikes
will make a sound. The Default value of 50 is a good starting point for most instruments.

The software allows all 3 settings to be customized by the user. This allows complete flexibility to customize the
sensitivity to each instrument. It also enables tailoring how the software is used to your trading style. You may be
hyper focused on quick scalp opportunities or you may prefer to wait for the most significant spikes over somewhat
larger timeframes. The key to the design of the software is that its full flexibility does not limit you in any way.

Software Components

To summarize, the software consists of 2 separate indicators:

• Soundwave – This is the main indicator which produces the Graph Box with up to 8 instruments as well as the
Sound Signals that you hear when it is running (more than 8 instruments are possible by using multiple
instances of the indicator)
• Soundwave Engine – This is the software that produces the subpanel on a price chart giving you a way to
visualize the spikes in the pace of activity and the effect on price action.

Software Configuration

There are a number of ways to configure the software:

1. Audio Only – Only rely on sound by hiding the chart which has Soundwave applied to it
2. Audio/Visual Realtime – Allocate screen space for a chart which shows the Graph Box and generates the sound
(you can also simply add Soundwave to your trading chart to save screen space)
3. Audio/Visual Realtime and Historical Subpanel – This is where you include a chart with Soundwave Engine
applied to be able to see historical patterns (it can be on your trading chart or a separate chart)
4. Backtesting and Analysis – In this mode you would focus on the Soundwave Engine indicator and backtest to
optimize settings and develop strategies

Here are a few examples of software configuration:

Configuration 1: Soundwave Graph Box Only:


In this configuration, the current realtime Orderflow activity is monitored for up to 8 instruments, with both sound and
visual representation of the data being used by the trader.

Configuration 2: Subpanel with Price history:

This configuration is typically used for historical analysis on a single instrument.

Configuration 3: All in One Graph Box/Price Bars/Historical Data:

In this configuration, all the components of the Soundwave software are applied to a single chart. The subpanel
(Soundwave Engine) shows historical histograms for the main chart series (in this case ES) whereas the other
instruments are represented in the Graph Box (Soundwave indicator) showing a visual which corresponds to the sounds
you are hearing.

Buying versus Selling Pressure

In addition to measuring the flow of orders per unit of time, the Soundwave software also keeps track of upticks and
downticks in that data stream. This is additional valuable information reflecting whether buyers or sellers are
dominating the Tape. Graphically, this is depicted by the color scheme for the histograms, racing stripes, and horizontal
bars in the Graph Box.

The histograms in the subpanel represent the total orderflow whereas the color of each histogram represents the
dominant force within that volume of orders (i.e. the difference between upticks and downticks). Using the default
colors, the picture below identifies how to visually recognize the dominant pressure associated with the measured
orderflow (Note: the colors can be customized according to your personal preference):

Timeframes

The Soundwave and Soundwave Engine indicators are deployed by applying them to a price chart. While any timeframe
can be used for that price chart, there are certain considerations to keep in mind:

• In general, it is advisable to use a fairly small timeframe of 1 minute less reflecting the fact that orderflow rate
can change dramatically in fractions of a second
• For the primary Soundwave indicator, the choice of timeframe is secondary to the Lookback setting because
the Graph Box and audible sounds only reveal what is happening in the immediate moment (a good rule of
thumb is a Lookback setting of 1-3 times the chart timeframe)
• For the Soundwave Engine indicator, shorter timeframes reveal a more precise relationship between price and
the Orderflow rate while a longer timeframe can tend to collapse the activity into a single bar (introducing a
lag in the responsiveness)
To illustrate this last point, consider the following 2 charts side by side. The chart of the left maps Orderflow to a 30
second chart whereas the chart on the right maps the same timespan but on a 1 second chart:

Notice that on the 30 second chart a substantial portion of the up move occurs before getting the racing stripe whereas
on the 1 second chart the signals begins closer to the start of the move. The bottom line is that the Orderflow
information that is being provided should be configured in a fashion that is consistent with your trading approach.

Flip the Tape

Flip The Tape is a feature which can be used to exploit the fact that at certain Areas of Interest (AOI’s), institutional
traders step in with substantial volumes to absorb a price move and this often results in a reversal in price. Sometimes
the reversal is good for a quick scalp and at other times the reversal can be more significant. The main purpose of this
feature is to reverse the signal visuals to make it easier to interpret the correct trade direction.

Before describing this feature in detail, we can differentiate between 2 common scenarios that lead to a massive flood
of orders hitting the Tape. The 2 scenarios are as follows:

1. Scenario 1: A larger number of market orders drive the price in one direction
2. Scenario 2: A large number of limit orders is triggered when a particular price level is reached, causing
absorption which stops the move and often reverses price

The main issue here is that market orders and limits orders are handled differently on the exchange. Market Sell orders
are executed at the Bid which would typically be a downtick. Market Buy orders are executed at the Ask which would
typically be an uptick. However, Limit orders are treated in the opposite fashion when it comes to how they are
recorded.

The software differentiates between buying and selling pressure by assigning colors based on a comparison of upticks
versus downticks (see earlier section). If all orders were market orders, the color displayed in the graphics would be
unambiguous. However, at certain price locations, limit orders can temporarily dominate market orders which can
distort your interpretation of the dominant force in the orderflow at that moment.
Before explaining the mechanics of the Flip The Tape feature, consider the following images:

Price is falling and approaching Support. At the Area of Interest, a large number of standing Limit orders to Buy are
executed at the Bid. If we assumed these were market orders, we would conclude there was a climax of selling which
would normally push price even further down. However, because these are Limit orders to Buy, they are executed at
the Bid and they act to absorb the buying, often causing a price reversal and a possible Long trade opportunity.

Here is the case of Limit Sell orders at Resistance:

Price is rising and approaching Resistance. At the Area of Interest, a large number of standing Limit orders to Sell are
executed at the Ask. If we assumed these were market orders, we would conclude there was a climax of buying which
would normally push price even further up. However, because these are Limit orders to Sell, they are executed at the
Ask and they act to absorb the selling, often causing a price reversal and a possible Short trade opportunity.
We are using the software to time our trades but also look for clues about trade direction. The problem is that our
directional interpretation depends on whether the Tape is dominated by Scenario 1 or Scenario 2 as described above.

On the left, a large influx of orders drives the price down, with participation increasing as the move progresses. On the
right, we have a steady downtrend which stops and instantly reverses when a flood of orders steps in to absorb the
selling. Traders who are very familiar with Orderflow can interpret this as it is presented. However, to help with
directional bias when absorption occurs, the Flip The Tape feature will simply reverse the color scheme so that bullish
colors show up as bearish and vice versa. Here is the same Absorption image (on the right) with Flip The Tape turned
On:
The Flip the Tape feature essentially reverses the color scheme to help stay on the right side of the market when
absorption occurs. This applies to both the Soundwave and Soundwave Engine indicator. When Flip The Tape is
activated, the Graph Box not only reverses the colors but it also changes the direction that the horizontal bars shift. In
this way, all visual cues are consistent across the board.

The question remains when to turn this feature On and when to leave it Off. This is something that is ultimately up to
the user. The market open and big news shocks often drive price as a result of strong participation and aggression,
meaning the Flip The Tape feature would not make sense. On the other hand, when price approaches a key Support or
Resistance level, it is wise to be on the lookout for Absorption and in those situations using the Flip The Tape feature
may be helpful. As you work with the software you begin to recognize these scenarios and trade accordingly.

Data Requirements

Because Soundwave is a Ninjatrader indicator, you can track the orderflow of any instrument that is included in your
datafeed by simply applying it to a price chart. Soundwave will produce sounds and display the realtime Graph Box for
up to 8 instruments. If you want to track more than 8 instruments, you can use multiple instances of the indicator. The
Soundwave Engine indicator will display the historical Orderflow histograms for any instrument for which you have
historical tick data from your data supplier.

UI Dropdown

The Soundwave software includes dropdown menu button at the top of the chart window. This dropdown menu
allows you to enable/disable the sounds for each of the 8 instruments separately. It also include an option to Flip The
Tape. When you want to Flip The Tape, you must click the Re-Calculate option. To access the dropdown menu, click
the Soundwave menu button:
Indicator Properties Window

All the settings for the software can be customized by opening the indicator properties window:
Soundwave Indicator Parameters and Settings

The following table provides a detailed explanation of every parameter that is available in the Indicator
Properties window for the Soundwave software, including allowable values, default value, and full
description. A similar table for the Soundwave Engine indicator can be found in the next section.

Group Parameters Allowable Values Description


Parameters Seconds Lookback Integer > 0 This defines the number of seconds
Default = 3 lookback for measuring the flow rate of
incoming executions in the Tape.
Thresh Smoothing Integer > 1 This is the number of bars to use for
Period (Bars) Default = 200 calculating the smoothed flow rate,
which is used for calculating the
Threshold level for generating a sound
alert.
Smoothing Type Simple/Weighted/ This selects the method used for
Exponential smoothing the measured flow rate of
Default = Simple orders over the smoothing period.
Simple means a simple average.
Weighted means a weighted average.
Exponential means an exponential
average.
Show Expirations? On/Off When turned On, futures symbols in
Default = Off the Graph Box will include the
expiration date. If turned off, you will
only see the symbol letters.
Audio Hi Alert% Percent Value 0 – 100 This is the volume level of the sound
Loudness Default = 100 signals when the measured flow rate is
over 2 times the Threshold.
Med Alert % Percent Value 0 – 100 This is the volume level of the sound
Default = 80 signals when the measured flow rate is
between 1.5 and 2 times the Threshold.
Alert % Percent Value 0 – 100 This is the volume level of the sound
Default = 60 signals when the measured flow rate is
between 1 and 1.5 times the Threshold.
Custom Horizontal Size in Integer > 0 This sets the width of the Graph Box in
Visuals pixels Default = 300 pixels. Entering a value less than 200 is
not recommended.
Up Flow Above Any Available Color This is the color of the horizontal bars
Threshold Default = Lime in the Graph Box when they extend to
the right and they exceed the
Threshold.
Up Flow Below Any Available Color This is the color of the horizontal bars
Threshold Default = DarkGreen in the Graph Box when they extend to
the right but they do not exceed the
Threshold.
Down Flow Above Any Available Color This is the color of the horizontal bars
Threshold Default = Magenta in the Graph Box when they extend to
the left and they exceed the Threshold.
Down Flow Below Any Available Color This is the color of the horizontal bars
Threshold Default = DarkRed in the Graph Box when they extend to
the left but they do not exceed the
Threshold.
Graph Box Outline Any Available Color This is the color of the table outline in
Default = Yellow the Graph Box. This color will also be
used for the Threshold marks and the
Soundwave title, Flip Tape mode, and
sensitivity factors for each symbol.
Graph Box Fill Any Available Color This is the background color of the
Default = Black Graph Box.
Show Tape Flip On/Off If turned On, a label showing whether
Status? Default = On the Tape is Flipped or Normal in the
upper right corner of the Graph Box. If
turned Off, no label will be displayed.
Loc of Graphics TopLeft/BottomLeft/ This determines where the Graph Box
BottomRight/Center/ will be displayed.
TopLeft/TopRight
Default = TopLeft

Button Text Any Character String This controls the text string that is
Default = Soundwave visible in the button at the top of the
chart window. This button is how you
access the Drop Down Menu in the
User Interface.
Data Show Sensitivity On/Off When turned On, you will see the
Factors Default = Off Sensitivity Factor to the right of the
table with the Graph Box. There will be
a separate value for each of the 8 rows
in the table. When turned Off, no
Sensitivity Factors will be visible.
Sensitivity Factor Integer 0 – 100 This is the Sensitivity Factor to be used
(Chart) Default = 50 for the main chart instrument.
Sound Alert (Chart) On/Off This is the On/Off switch for the audio
Default = On alerts for the main chart instrument.
You can also access this setting in the
user interface dropdown menu.
Flip The Tape? On/Off When this is checked, the Tape will be
Default = Off Flipped for all instruments.
Symbol 1 Any Text string This is your choice for Symbol 1 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 1 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 1.
Sound Alert 1 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 1. You can also access
this setting in the user interface
dropdown menu.
Symbol 2 Any Text string This is your choice for Symbol 2 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 2 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 2.
Sound Alert 2 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 2. You can also access
this setting in the user interface
dropdown menu.
Symbol 3 Any Text string This is your choice for Symbol 3 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 3 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 3.
Sound Alert 3 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 3. You can also access
this setting in the user interface
dropdown menu.
Symbol 4 Any Text string This is your choice for Symbol 4 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 4 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 4.
Sound Alert 4 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 4. You can also access
this setting in the user interface
dropdown menu.
Symbol 5 Any Text string This is your choice for Symbol 5 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 5 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 5.
Sound Alert 5 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 5. You can also access
this setting in the user interface
dropdown menu.
Symbol 6 Any Text string This is your choice for Symbol 6 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 6 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 6.
Sound Alert 6 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 6. You can also access
this setting in the user interface
dropdown menu.
Symbol 7 Any Text string This is your choice for Symbol 7 to
(must be a valid ticker include in the Graph Box. For futures,
symbol) you must include the expiration.
Sensitivity Factor 7 Integer 0 – 100 This is the Sensitivity Factor that is to
Default = 50 be used for Symbol 7.
Sound Alert 7 On/Off This is the On/Off switch for the audio
Default = On alerts for Symbol 7. You can also access
this setting in the user interface
dropdown menu.
Indicator Indicator Version Display Only This parameter identifies the release
Version number and release date of the
software version that you currently
have installed.
Data Series Input Series Any Available Instrument This identifies the Chart Series.
Setup Calculate OnBarClose/ The default setting is recommended.
OnEachTick/
OnPriceChange
Default = OnEachTick
Label Default = This displays the indicator name in the
ARC_Soundwave main chart panel. If blank then no
indicator Label will be displayed.
Maximum bars look Default = 256 The default setting is recommended.
back
Visual Auto scale On/Off When enabled, the indicator will be
Default = On included in the chart panel's vertical
automatic scaling.
Displacement Integer Sets the number of bars by which to
Default = 0 displace the indicator plots. The Default
value is recommended.
Display in Data Box On/Off Enables or disables the inclusion of the
Default = On indicator's plot values in the Data Box
Panel Integer This controls which panel the indicator
Default = Same as input is displayed in.
series
Price Marker(s) On/Off There is no Price value associated with
Default = On this indicator. Leave as Default value.
Scale Justification Left/Right/Overlay The Default value is recommended.
Default = Right
Visible On/Off Turning this Off means the indicator
Default = On will not be displayed. Leave as the
Default value.

See next section for parameter settings for the Soundwave Engine indicator.
Soundwave Engine Indicator Parameters and Settings
The following table provides a detailed explanation of every parameter that is available in the Soundwave
Engine indicator Properties windows, including allowable values, default value, and full description:

Group Parameters Allowable Values Description


Parameters Seconds Lookback Integer > 0 This defines the number of seconds
Default = 3 lookback for measuring the flow rate of
incoming executions in the Tape.
Thresh Smoothing Integer > 1 This is the number of bars to use for
Period (Bars) Default = 200 calculating the smoothed flow rate,
which is used for calculating the
Threshold level for generating a sound
alert.
Sensitivity Factor Integer 0 – 100 This is the Sensitivity Factor to be used
Default = 50 for the main chart instrument. The
larger the number the fewer the audio
alerts.
Smoothing Type Simple/Weighted/ This selects the method used for
Exponential smoothing the measured flow rate of
Default = Simple orders over the smoothing period.
Simple means a simple average.
Weighted means a weighted average.
Exponential means an exponential
average.
Flip The Tape On/Off When this is checked, the Tape will be
Default = Off Flipped for all instruments.
Custom Full-Size Racing On/Off When this is turned On, the racing
Visuals Stripes? Default = On stripes extend vertically the full length
of the chart. If this is turned Off, the
racing stripes will only be visible in the
subpanel
Bkg Stripe Opacity Integer 0 - 100 This controls the opacity of the racing
stripes.
Buy Stripe Any Available Color This is the color of the Buy racing
Default = Lime stripes, which are associated with the
UpFlow histograms in the subpanel.
Sell Stripe Any Available Color This is the color of the Sell racing
Default = Magenta stripes, which are associated with the
DownFlow histograms in the subpanel.
Show Tape Flip On/Off When this is turned On, a label will be
Status? Default = On visible in the subpanel showing the
whether the Tape is Flipped or Normal.
If turned Off, no label will be displayed.
Indicator Indicator Version Display Only This parameter identifies the release
Version number and release date of the
software version that you currently
have installed.
Data Series Input Series Any Available Instrument This identifies the Chart Series.
Setup Calculate OnBarClose/ The default setting is recommended.
OnEachTick/
OnPriceChange
Default = OnEachTick
Label Default = This displays the indicator name in the
ARC_SoundwaveEngine main chart panel. If blank then no
indicator Label will be displayed.
Maximum bars look Default = 256 The default setting is recommended.
back
Visual Auto scale On/Off When enabled, the indicator will be
Default = On included in the chart panel's vertical
automatic scaling.
Displacement Integer Sets the number of bars by which to
Default = 0 displace the indicator plots. The Default
value is recommended.
Display in Data Box On/Off Enables or disables the inclusion of the
Default = On indicator's plot values in the Data Box
Panel Integer This controls which panel the indicator
Default = Same as input is displayed in.
series
Price Marker(s) On/Off There is no Price value associated with
Default = On this indicator. Leave as Default value.
Scale Justification Left/Right/Overlay The Default value is recommended.
Default = Right
Visible On/Off Turning this Off means the indicator
Default = On will not be displayed. Leave as the
Default value.
Lines ZeroLine
Plots Threshold
UpFlow
DownFlow
Flow

ARC-AI thanks you for your business and use of the Soundwave software.
Should you need assistance or support please email support@architectsai.com.

You might also like