DiNapoli Leading Indicator Trading: Explosive Moves in Gold

For active futures traders, timing the market with precision is essential—but it’s also one of the biggest challenges. Joe DiNapoli and Pieter van Wyk of Coast Investment Software demonstrated how to use DiNapoli leading indicators and expansion levels to identify high-probability trade setups, even during periods of market volatility. Using a real-world gold futures trade as a case study, they showed how these tools can help traders navigate complex market dynamics with greater clarity and confidence.

 

Define context with the MACD Predictor

 

Understanding market context is the first step in any trade plan. DiNapoli’s approach begins on a higher time frame, such as the weekly chart, using a proprietary tool called the MACD Predictor. This leading indicator, based on the traditional MACD, projects future turning points rather than simply reacting to past price action.

On the gold chart, the MACD Predictor signaled an uptrend on the weekly time frame. This gave traders a directional bias to work with when looking for entries on shorter time frames—a key concept in multi-time frame analysis.

 

Spot short-term opportunities with confidence

 

Dropping to the daily chart, the MACD Predictor showed a sell signal. But rather than taking the sell at face value, DiNapoli highlighted a setup known as a “stop grabber”—a pattern indicating the market may briefly move lower to sweep stop orders before reversing higher. For traders, this may be an opportunity: a short-term dip in a larger uptrend can become a strategic entry point.

By placing a buy order at a DiNapoli expansion level (known as the OP level), DiNapoli positioned himself to capitalize on that temporary weakness. This kind of setup can help futures traders be more proactive, using short-term countertrend signals to enter trades aligned with the larger trend.

 

Automate structure, streamline decision-making

 

To support this methodology, van Wyk introduced a major upgrade to the DiNapoli indicator suite available for NinjaTrader users. This enhancement features color-coded signals that visually communicate whether a trade setup should be followed or faded based on higher time frame analysis.

For futures traders juggling multiple charts and time frames, these visual cues can help reduce confusion and speed up decision-making. The system highlights when to expect continuation or reversal, helping traders better align entries with market context.

 

Benefits for the futures trading workflow

 

The DiNapoli method offers several key advantages for futures traders:

• Clarity in volatile markets: Leading indicators help traders anticipate, not just react.
• Structure for entries and exits: DiNapoli levels offer clearly defined support and resistance zones.
• Confidence across time frames: Color-coded signals simplify multi-time frame alignment.
• Repeatability: The same principles apply whether trading on a one-minute or weekly chart.

These tools can be especially helpful for traders who prefer a rules-based approach and want to reduce second-guessing in the fast-moving futures markets.

 

Build your trading strategy with DiNapoli tools

 

Whether you’re new to technical analysis or looking to refine your futures trading strategy, the DiNapoli approach offers a well-established framework for identifying and executing trades. To learn more, visit FibTrader.com, explore the DiNapoli indicator suite on NinjaTrader, and check out the book “Trading with DiNapoli Levels: The Practical Application of Fibonacci Analysis to Investment Markets.”

How to Add 3rd Party App to NinjaTrader

To import your 3rd party app or add-on to NinjaTrader, simply follow these 3 steps: