Just found two new indicators for ThinkorSwim that can be used for long-term option trading.
Big Hand with Weekly Aggregation_Waylock_AlphaInvestor
Big Hand should be run on SPY WEEKLY Chart.
# Use on Weekly Chart
# Script by Waylock
# AlphaInvestor - 05/12/2017 - force to weekly aggregation
input agg = AggregationPeriod.WEEK;
# Hide Study Name and Inputs
# Add this to hide the text on the title bar
plot Scriptlabel = Double.NaN;
Scriptlabel.SetDefaultColor(CreateColor ( 6, 0, 48 ));
input fastLength = 19;
input slowLength = 39;
def c = close(period = agg);
plot Value = ExpAverage(c, fastLength) - ExpAverage(c, slowLength);
def Value_color = if Value > 0 then yes else no;
Value.DefineColor( "ValueUp", Color.GREEN );
Value.DefineColor( "ValueDn", Color.RED );
Value.AssignValueColor( if Value_color then Value.Color( "ValueUp" ) else Value.Color( "ValueDn" ) );
plot ZeroLine = 0;
def xUndr = Value < 0 and Value > 0;
def xOver = Value > 0 and Value < 0;
plot ArrowUp = if xUndr then xOver else Double.NaN;
plot ArrowDn = if xOver then xUndr else Double.NaN;
# Make Label on Study panel to show the value of the Big Hand
def data = Value;
AddLabel(yes, "Big Hand " + Round(data, 2), if data > 0 then Color.GREEN else Color.RED);
AddLabel(yes, "Big Hand should be run on SPY WEEKLY Chart", Color.GRAY);
# End Study
Charts the Coppock Indicator described here: https://en.wikipedia.org/wiki/Coppock_curve.
The Coppock can be used (along with other indicators like the Eureka Signal and IBD6000 %Es) to identify points where the stock market trend changes from down to up. The Coppock does not identify the beginning of downtrends. This study is designed to be applied to a major market index (e.g., SPX or COMP) with an aggregation period of weeks or months.
Copyright 2016 Scott J. Johnson (http://scottjjohnson.com)
input RateOfChangeSlowPeriod = 14;
input RateOfChangeFastPeriod = 11;
input WeightedMAPeriod = 10;
def AggregationPeriod = if (getAggregationPeriod() < AggregationPeriod.WEEK) then AggregationPeriod.WEEK else getAggregationPeriod();
def price = close(period = AggregationPeriod);
def ROC1 = if price[RateOfChangeSlowPeriod]!=0 then (price/price[RateOfChangeSlowPeriod]-1)*100 else 0;
def ROC2 = if price[RateOfChangeFastPeriod]!=0 then (price/price[RateOfChangeFastPeriod]-1)*100 else 0;
plot Coppock = WMA(ROC1 + ROC2, WeightedMAPeriod);
Coppock.assignValueColor(if Coppock>Coppock then color.green else color.red);
plot ZeroLine = 0;
AddChartBubble(Coppock < 0 and Coppock > Coppock and Coppock < Coppock, Coppock, "Buy", Color.CYAN, no);
How to Use Both Indicators
- Add them into your ThinkorSwim Studies
- Enable both indicators
- Use them for FANGs and mostly indices like SPY and SPX
- Timeframe: Weekly Chart (only!)
The Big Hand indicator will let you know the beginning of a downtrend and also the beginning of an uptrend (indicated by arrow up and arrow down). The Coppock indicator will let you know when to buy into an uptrend (indicated by a Buy label).
Example 1: Amazon
Let's use Amazon as an example. The last time we got a Buy signal from the Coppock indicator was October 9th, 2017. Closing price was $1002.94. Fast forward to October 23rd, we saw a $98 jump in price (in less than a month).
Example 2: SPY
With SPY, the last time we got a Buy signal from the Coppock indicator was May 7th of this year. Closing price was $272.85. Shortly a month after, we saw a $5 jump in price.
I'll be taking a look at some of the signals given by the Big Hand indicator on SPY as well. In late September 2015 and early 2016, we saw a few uptrend and downtrend signals.
SPY opened at $195ish. Less than a month later, its lowest was 186ish. We can also see how the Coppock and Big Hand indicators correlate with each other at some events.
It's important to note that there is currently a downtrend signal on SPY, given by the Big Hand indicator.
Give these 2 indicators some backtesting and you should see a clear picture. Looking at historical data, we should see a Buy signal from the Coppock and an uptrend signal from the Big Hand indicator pretty soon. How I'm going to approach this strategy is fairly simple. Look through some historical data, see how much a stock usually jump after they were given a Buy signal and how long it took them. I'd say usually 1-2 months.