Above the Green Line System for ThinkorSwim

BenTen

Administrative
Staff
VIP
Above the Green Line system shared by Joanne Klein over at StockCharts.com was interesting, so I took some of the concepts and ported them over to ThinkorSwim.

How to use Above the Green Line chart

These are the 3 trading rules outlined by Joanne Klein in Above the Green Line system.
  1. Stocks trading above the 250 days moving average
  2. Above 90 Relative Strength Factor
  3. Money Wave (Slow Stochastic) should be < 20 and turning up
rrnU3wB.png


The Strategy is based on rotating into Investments that generally have more Buyers than Sellers (Above the Green Line), which is Above the 250-day moving average), and the highest Relative Strength (> 90 Relative Strength).

Above the Green line indicator

Code:
# Above the Green line script
# Display 250 day moving average
# BenTen at UseThinkScript.com

input aggregationPeriod = AggregationPeriod.DAY;
def close = close(period = aggregationPeriod);
input length = 250;
input displace = 0;

plot greenline = Average(close[-displace], length);
greenline.AssignValueColor(color.light_green);

As far as the Relative Strength line, you should be able to find it here. Money Wave is another name for StochasticSlow, which you can add to ThinkorSwim under the Studies section. Set your k period to 5 and d period to 1.

Joanne Klein also mentioned the StockCharts Technical Rank (SCTR). You can find a replica for that on this page.

To scan for stocks trading above the green line: go to your TOS scan and add the following condition:

Code:
close is greater than SimpleMovingAvg("length" = 250)."SMA"

Set the aggregation period to D (daily).

Improving the system

After doing some backtesting, I decided to switch the StochasticSlow indicator for our Buy the Dip indicator. The results improved tremendously.

Here are some examples

FHnjr5O.png


RAsgtr2.png


KYboyz3.png


As you can see, the Money Wave line usually signals very early, sometimes too early, to even hold through the drawdown.

The system is there, apply however you want to your own trading. I see how this can be useful for swing trading (that's what I'm currently doing).
 
Last edited:

New Indicator: Buy the Dip

Check out our Buy the Dip indicator and see how it can help you find profitable swing trading ideas. Scanner, watchlist columns, and add-ons are included.

Download the indicator

Heisenberg

New member
Trying to stay in daily swing trade as long as possible. My setup using Normalized_Stoch_Mo. As long as the red line stays above the green line, I think the market will stay bullish.
 

Thomas

Active member
VIP
WOW Ben,....super simple type system...what would be helpful, the chart examples "shared,".... makes easy set up, or future post from anyone, "shared," columns, charts, indicators, etc.

Scan for strong, trending stocks, read price movement, understand trend dynamics, you can trade one stock until the trend changes. Find several several stocks in trends and trade size.....stocks move in steps, up a ladder,...identify price movement. This money wave is erratic based on the settings, would be easier to identify with smoother movement.
 
Last edited:

tem2005

Member
VIP
Is BTD code in the picture adjusted for money wave? If not, what makes it improved btd tremendously?
 

BenTen

Administrative
Staff
VIP
@tem2005 In my setup, I replaced Money Wave with BTD. Pictures included both indicators for comparison. You can do the same by adding the Money Wave a.k.a StochasticSlow indicator to your ToS chart. I hope that helps.
 

barbaros

Well-known member
VIP
@BenTen If you are going to filter the signals with above an EMA and you are using the conservative BTD, which line of BTD are you scanning with?
 

barbaros

Well-known member
VIP
@barbaros I don't use the scanner because I already have a basket of stocks that I focus on. But if I were to scan, I would start with the btd_short term. It wouldn't hurt to have also set up a scanner for the medium and long term lines. Be flexible and find what works best for you.
Sounds good @BenTen. It seems like you check your list of stocks EOD for different time frames and put a game plan together for the next day.
 

Volatility Trading Range

VTR is a momentum indicator that shows if a stock is overbought or oversold based on its Weekly and Monthly average volatility trading range.

Download the indicator

Similar threads

Top