Another Basic Level Fundamentals Strategy for ThinkorSwim

jezzer47

Member
2019 Donor
So I'm back with another strategy that's super simple. It is a play on basic level fundamentals that try to tap in on market sentiment on price.

To clear confusion. The levels are not used for support and resistance, they are used to define price action. The ability to see what price is doing at each line i.e. is price being halted at this price, is it bursting through at this price point, or is it consolidating at this price? The ability to exit a trade early or stay in a trade longer is what goal is here.


* I am not a code writer and pieced this together from searching the net. The code is very redundant because I have not figured out how to get lines that stretch across the chart as I wanted. If anyone can come along and clean it up and make it more efficient I would appreciate it.

*Please note to change the level you go into the study settings and change the price for each symbol you are looking at. I am not sophisticated enough to have it auto plot. I have defined each level or "rung" of the ladder to be $2.5. For this market volatility its appropriate but as the market goes you will have to adjust by going into the code itself and replace 2.5 with whatever you deem appropriate. (for indicies I find for /es to use every 10 points, /nq use every 25 points, and /ym use every 100 points)

So the strategy is that you define a price based on the ticker symbol you are watching. I like to use the previous day close or recent high or low. Once defined you determine the trend and then follow the lines like a ladder. Climb up or down based on price action and trend. I am trying to move away from a ton of indicators on the chart and follow pure price.

code:
Code:
input MyLevel = 10;
input Above = 2.5;
input Above2 = 2.5;
input Above3 = 2.5;
input Above4 = 2.5;
input Above5 = 2.5;
input Below = 2.5;
input Below2 = 2.5;
input Below3 = 2.5;
input Below4 = 2.5;
input Below5 = 2.5;



plot Level = MyLevel;

plot AboveLevel = MyLevel + Above;
plot AboveLevel2 = MyLevel + Above + Above2;
plot AboveLevel3 = MyLevel + Above + Above2 + Above3;
plot AboveLevel4 = MyLevel + Above + Above2 + Above3 + Above4;
plot AboveLevel5 = MyLevel + Above + Above2 + Above3 + Above4 + Above5;
plot BelowLevel = MyLevel - Below;
plot Belowlevel2 = MyLevel - Below - Below2;
plot Belowlevel3 = MyLevel - Below - Below2 - Below3;
plot Belowlevel4 = MyLevel - Below - Below2 - Below3 - Below4;
plot Belowlevel5 = MyLevel - Below - Below2 - Below3 - Below4 - Below5;

Examples:
3gv8UZH.png


I5wNQqx.png


QhmnGcl.png


^^^ The last image is multiple levels put on @ 10 points between. 1 min chart catches price action nicely on /es

That's about it. Feel free to ask questions, I will try to answer them the best I can.
 
Last edited:

maddy91

New member
Do these levels have any statistical or probabilistic purpose or are they just static constant levels not based on anything? I know there is an expensive indicator out there that was made using MATLAB and that shows you levels that have high probability of getting touched and that level won't be touched again.
 

jezzer47

Member
2019 Donor
Do these levels have any statistical or probabilistic purpose or are they just static constant levels not based on anything? I know there is an expensive indicator out there that was made using MATLAB and that shows you levels that have high probability of getting touched and that level won't be touched again.
just normal levels. nothing statistical about them. Price moves wherever and whenever it wants. The levels just help me see price reaction of strength and weakness at certain levels
 

maddy91

New member
just normal levels. nothing statistical about them. Price moves wherever and whenever it wants. The levels just help me see price reaction of strength and weakness at certain levels
so this is just a visual aid nothing specific or special about these levels correct? Because price can show support and positions anywhere in between those levels because price moves from order flow. Looks great by the way, testing it out right now awesome
 

jezzer47

Member
2019 Donor
so this is just a visual aid nothing specific or special about these levels correct? Because price can show support and positions anywhere in between those levels because price moves from order flow. Looks great by the way, testing it out right now awesome
correct. The hard part is choosing the intial level to set all the others. As i said before I look to use previous close, last high or low, and maybe the current pivot point.
 

maddy91

New member
For some reason it's not showing up on my chart? Is there any setting I need to change for the study to show up? Thanks
 

maddy91

New member
Ahhh i got it, Just had to set up a level. It would be really nice if you can put an option to choose previous high low open close for the level
 

jezzer47

Member
2019 Donor
For some reason it's not showing up on my chart? Is there any setting I need to change for the study to show up? Thanks
make sure and go into the study settings and adjust the my level to current price of what ever ticker you are looking at
 

jezzer47

Member
2019 Donor
Ahhh i got it, Just had to set up a level. It would be really nice if you can put an option to choose previous high low open close for the level
Agreed. Unfortunately that is beyond my skill level. From what I tried the lines would come out as zig zag-ish. Hopefully someone on this forum can overcome that issue.
 

horserider

Well-known member
VIP
2.5 just an arbitrary number. Input a price and input any add number for the lines.
Useless. If any line shows a support/resistance it is purely coincidence.
The more lines you draw the better chance one will look like it means something.
 

jezzer47

Member
2019 Donor
2.5 just an arbitrary number. Input a price and input any add number for the lines.
Useless. If any line shows a support/resistance it is purely coincidence.
The more lines you draw the better chance one will look like it means something.
I agree with your statement. The lines are not some magical support and resistance levels. Its what happens at each line im interested about. Trading is all about price movement going up or down. The lines just let me see a clear overall picture
 

jakej31

New member
Do these levels have any statistical or probabilistic purpose or are they just static constant levels not based on anything? I know there is an expensive indicator out there that was made using MATLAB and that shows you levels that have high probability of getting touched and that level won't be touched again.
Can you give any more info about this MATLAB indicator? I write a ton of advanced MATLAB code and I may be able to reverse engineer it if I know more about it.
 

maddy91

New member
Can you give any more info about this MATLAB indicator? I write a ton of advanced MATLAB code and I may be able to reverse engineer it if I know more about it.
I I have no idea how they did it or even they did it or not because it's a product they sell. According to them they have a code on MATLAB that looks at previous prices and levels and see how it reacts to them and predicts new price levels. You can find more information on the following website.
https://offers.daytradelikeapro.com/predictionpoints-free
There's a free trial you can look at on NinjaTrader but I know this product is extremely expensive like thousands of dollars per month.
 

maddy91

New member
Can you give any more info about this MATLAB indicator? I write a ton of advanced MATLAB code and I may be able to reverse engineer it if I know more about it.
If you want to create something, I had an idea before is that you buy previous data points from CME, daily high low close. Daily several swing highs and lows (my view is that the swing has answering the loads are made at inflection points where there is a certain size trade happened). So you should get all the data and run through MATLAB like in a prediction model. There are probably tons and tons of other variables that I'm missing. It was this easy everybody would be doing it. Let me know if you do it ☺️
 

jakej31

New member
@maddy91 So here's what I think is going on: based on the description and the fact that MATLAB is being used, my guess is they are using deep learning, likely a genetic reinforcement learning algorithm. I have thought about trying something like this in my trading but this is a massive undertaking lol. I am almost certain you would need months, if not years, of tick data with bid and ask volumes and historical book depth. We are talking tens/hundreds of millions of data points and a ton of $ just for the data. And then it has to be filtered and scaled before even being put through the training algo.
 

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