A Serving of Trend and Momentum Indicators for ThinkorSwim

MerryDay

Well-known member
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Trend and Momentum anyone?

How to determine trend and momentum? Here are a few ways:

Bullish trend on the weekly chart. EMA5>EMA10. Preferably a strong bullish trend for most of the weeks since the start of the pandemic. But there are no solid rules, some stocks took off only after the September correction. And sometimes the current candle has a dip down. But an overall bullish trend ensures fewer losses. If the stock has been consistently up, the chances of it falling just because I bought it are slim.

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These Trend Signals MUST be identified on Higher Agg charts. The minimum I use is a 30min chart even when scalping. Lower aggregations have too much noise to correctly identify trends.

Stock Market Internals: Strong bullish trends require that the Stock Market should be having a bullish day. A search of the forum for Market Internals will provide additional scripts. Indicator / Label

Sector Dashboard: The industry that the stock is associated with should be having a bullish day. Indicator / Label

A Technical Method For Rating Stocks by Markos Katsanos: This TOS Stock Rating System is everything you need to know about trends and momentum. It rates trend, quality, direction, etc. There is more info here and here. Indicator / Label

True Momentum Oscillator by Mobius: TMO calculates momentum using the delta of price. Giving a much better picture of trend, trend reversals, and divergence. One of the gold standards of momentum. Indicator / Label

Chris Stop Light by Chris Ball: A dashboard that includes Momentum, CCI, RSI, Bollinger Bands, Chop, and ADX. Good trend and momentum require strong positive/bullish signals in these indicators. Search forum if these indicators are unfamiliar or unsure of how they are used.
Indicator / Label

TOS MarketForecast: This TOS indicator is a powerful tool that offers near term trend, intermediate, and momentum signals; there is more info here and here. Indicator / Label (label is for the MarketForecast().Intermediate trend only)

Trading Range Volatility a VIP indicator: Measures the weekly and monthly movement of a stock. The stock should not be at the top of its trading range. Indicator / Label

NinjaTrader Volume Price Analysis: A study of price action and volumes. Bullish pop-up labels provide strong signals of a trend reversal. Indicator / Label

TOS Live News: News articles MUST be perused before entry is made into a stock. GOOD NEWS/BAD NEWS will affect stock price direction more than any other criteria.

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TOS Fw_DPO_Mobo by @rad14733 my new favorite. This TOS Indicator should have a bullish MOBO w/ a DPO running above and parallel. More info here and here

@Welkin Volume: Please read the linked post. This is an awesome volume study. There must be a volume study to do trend analysis. Volume drives price. No trend indicator tops volume. Feel free to substitute whatever volume study is comfortable.

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It is important to go to the thread links provided, read all the posts, and get comfortable with the correct usage of these indicators. Most questions can be answered with a google search for more information about each indicator.

There is some multicolinearity amongst these indicators; one or more indicators could be repetitive. Not all indicators work with all strategies. Work with them, see which fits your strategy, and eliminate any redundancies.

TREND IS NOT A STRATEGY.
This group of indicators are used on a Higher Agg chart to confirm that a stock that was identified with a strategy such as Moving Average Cross, Trend Reversal, Divergences, OpenBreakOut, GapUp, BuyTheDip, etc.. has the trend, momentum, and volume to result in a profit.
These Trend indicators can be used in combination with a strategy for scalping, day trading, swing, futures, etc.

Is your favorite go-to trend momentum indicator missing? Let me know and I will add it to the list :) :)
 
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