Dot Indicator:-

Background:-

NASDAQ is a market weighted index, meaning that the stocks with largest market cap will have the greatest impact on the index. Therefore, if most of the large caps are trading towards one side, it is likely that overall index will also follow similar path. For example if #AAPL, #MSFT, and #META are trading lower and have a bearish momentum, it is likely that index will remain under pressure and/or trade lower. 

What does the Dot Indicator show?

This indicator takes the largest six stocks by market cap and if four out of those six names are trending in 1 min chart, it identifies that specific time period and puts a dot on the 1-min #QQQ or #NQ (E-mini NASDAQ) chart. The Dot will show Blue if the momentum is Bullish, and Purple if the price is under pressure and is showing Bearish momentum. You have the option to change those six names and their individual thresholds if needed. However, the default names are $AAPL, $AMZN, $NVDA, $META, $GOOGL, MSFT

Please see the detailed video here.

Bearish Price Action

Bullish Price Action

Multiple ways to Trade with this Indicator:-

Obviously everyone trades differently when it comes to trading and just by definition, any indicator will have a certain amount of lag. For any indicator to 'Indicate', it needs a little bit of confirmation. Therefore keeping that in mind, here are few ways one can consider this indicator in their approach.

1. Take action immediately once the Dot appears. Go Long after the first blue dot, or short after the purple dot. One can take a trade after they get a 1 min Bearish after the Blue Dot indicating some sort of Pull back before you get in a Long Trade. Vice versa for a Short trade where you wait for a Purple dot, but look for a Bullish bar in 1 min time frame as a pull back. 
2. Wait for a 5 min bar to give you a pull back when the Dots are active. Of course the end result will depend one individual trader's Stop-loss and Targets. 
3. If the Dots are Blue indicating Bullish underlying price action, drill into NinzaRenko chart and trade only when the Cloud is showing blue. Watch the video in next section for details.