Definition:
Sierra Charts is a professional-grade desktop trading and charting platform designed for active traders, particularly in futures, stocks, and forex markets. Unlike web-based platforms, it’s a high-performance Windows application that provides advanced technical analysis tools, real-time market data, customizable studies/indicators, and automated trading capabilities. It’s known for its speed, stability, extensive customization options, and powerful features favored by day traders and algorithmic traders.
Key Concepts:
- Desktop Application: Native Windows software (not browser-based)
- High Performance: Written in C++, extremely fast data processing
- Professional Trading: Used by serious day traders and institutions
- Advanced Analysis: 300+ built-in technical indicators and studies
- Automation: Support for automated trading systems (ACSIL - C++)
- Market Data: Direct feeds from exchanges (CME, NASDAQ, etc.)
Example:
Day Trading Session
Pre-Market Setup (8:00 AM)
Trader's Sierra Charts Workspace:
┌─────────────────────────────────────────────────────────────┐
│ Screen 1: Main Trading Monitor │
├─────────────────────────────────────────────────────────────┤
│ │
│ Chart 1: ES - 5 Min Candlesticks (primary chart) │
│ └─ Shows overall trend and key levels │
│ │
│ Chart 2: ES - 1 Min Candlesticks (timing chart) │
│ └─ For precise entry/exit timing │
│ │
│ Chart 3: ES - Tick Chart (500 tick bars) │
│ └─ Ultra-short-term price action │
│ │
│ Chart 4: NQ - 5 Min (NASDAQ futures correlation) │
│ └─ See if tech sector agrees with S&P │
└─────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────┐
│ Screen 2: Order Flow & Execution │
├─────────────────────────────────────────────────────────────┤
│ │
│ Footprint Chart: ES - 5 Min │
│ └─ See buyer/seller aggression │
│ │
│ Trade DOM: ES │
│ └─ One-click order entry │
│ │
│ Market Depth: ES │
│ └─ See limit order book depth │
│ │
│ Volume Profile: Today's session │
│ └─ Identify high-volume areas (support/resistance) │
└─────────────────────────────────────────────────────────────┘
9:30 AM - Market Opens
What Trader Sees:
ES 5-Minute Chart:
Time: 9:30 AM
Price: 4820.00 (opening price)
VWAP: 4818.50
Yesterday's Close: 4815.25
Analysis on Screen:
┌────────────────────────────────────┐
│ Pre-market High: 4822.00 │ ← Resistance level
│ Pre-market Low: 4816.50 │ ← Support level
│ VWAP: 4818.50 │ ← Fair value
│ Previous Day: 4815.25 (close) │
│ Overnight High: 4825.00 │
│ Overnight Low: 4812.00 │
└────────────────────────────────────┘
Current Bar (9:30-9:35):
Open: 4820.00
High: 4823.50
Low: 4819.00
Close: 4822.75 (so far)
Volume: 12,450 contracts
Indicators:
├─ 9 EMA: 4819.25 (price above = bullish)
├─ 20 EMA: 4817.00 (price above = bullish)
├─ RSI: 62 (neutral, slightly bullish)
└─ MACD: Positive and rising (bullish)
Footprint shows: Heavy buying at 4821.00 level
└─ 850 buy orders vs 320 sell orders
└─ +530 delta (strong buying pressure!)
9:35 AM - Trade Entry
Trade Setup:
Signal: Price bounced off VWAP (4818.50) with strong buying
Trade Plan:
├─ Entry: 4822.75 (current price)
├─ Stop Loss: 4817.00 (below VWAP and 20 EMA)
├─ Target 1: 4828.00 (previous resistance)
├─ Target 2: 4832.00 (measured move)
├─ Risk: 5.75 points
├─ Reward 1: 5.25 points (R:R = 0.91:1)
└─ Reward 2: 9.25 points (R:R = 1.6:1)
Execution in Sierra Charts:
1. Trader clicks on Trade DOM at 4822.75
2. Sets bracket order:
├─ Market Order: BUY 2 contracts
├─ Stop Loss: 4817.00 (automatic)
├─ Target 1: 4828.00 (sell 1 contract)
└─ Target 2: 4832.00 (sell 1 contract)
3. Clicks "BUY" button
Order filled in 0.02 seconds! ⚡
Live Position Tracking:
Position Window:
┌────────────────────────────────────────────┐
│ Symbol: ES │
│ Position: +2 contracts (LONG) │
│ Entry: 4822.75 │
│ Current: 4824.50 │
│ P&L: +$175.00 (+1.75 points × $50/point) │
│ │
│ Active Orders: │
│ ├─ Stop Loss: 4817.00 │
│ ├─ Target 1: 4828.00 (1 contract) │
│ └─ Target 2: 4832.00 (1 contract) │
└────────────────────────────────────────────┘
Chart shows:
├─ Entry line at 4822.75 (green)
├─ Stop loss line at 4817.00 (red)
├─ Target lines at 4828.00, 4832.00 (blue)
└─ Current P&L floating above position
9:48 AM - Target 1 Hit
Price reached 4828.00! 🎯
Automatic execution:
├─ 1 contract sold at 4828.00
├─ Profit on 1st contract: +$262.50
└─ 1 contract still open (stop now at breakeven)
Updated Position:
┌────────────────────────────────────────────┐
│ Position: +1 contract (LONG) │
│ Entry: 4822.75 │
│ Current: 4828.25 │
│ Realized P&L: +$262.50 (closed) │
│ Unrealized P&L: +$275.00 (open) │
│ Total P&L: +$537.50 │
│ │
│ Updated Orders: │
│ ├─ Stop Loss: 4822.75 (moved to breakeven)│
│ └─ Target 2: 4832.00 (1 contract) │
└────────────────────────────────────────────┘
Risk now: $0 (stop at entry = free trade!)
10:05 AM - Target 2 Hit
Price reached 4832.00! 🎯🎯
Final execution:
└─ Last contract sold at 4832.00
└─ Profit on 2nd contract: +$462.50
Final Trade Result:
┌────────────────────────────────────────────┐
│ TRADE CLOSED │
├────────────────────────────────────────────┤
│ Entry: 4822.75 (2 contracts) │
│ Exit 1: 4828.00 (1 contract) = +$262.50 │
│ Exit 2: 4832.00 (1 contract) = +$462.50 │
│ │
│ Total Profit: +$725.00 │
│ Total Risk: $287.50 (5.75 points) │
│ Reward:Risk = 2.52:1 ✅ │
│ │
│ Trade Duration: 30 minutes │
│ Commissions: -$4.80 (2 contracts × 2 sides)│
│ Net Profit: +$720.20 │
└────────────────────────────────────────────┘
Sierra Charts automatically:
├─ Logged trade to journal
├─ Updated daily P&L
├─ Removed all working orders
├─ Updated statistics (win rate, avg win, etc.)
└─ Sent notification to mobile app