Avoiding Counter trending signals

[convertiblejay]

I’ve recently been using TheBig4 indicator and have had some success with it. However, I’ve noticed that some of my largest losses occur when I take intraday signals that move against the broader market trend on higher timeframes such as the daily, 4-hour, and 1-hour charts.
To address this, I want to incorporate higher timeframe (HTF) alignment into the original strategy. The idea is straightforward: signals on the intraday chart (for example, the 5-minute timeframe) should only appear when they are aligned with the direction of the daily, 4-hour, and 1-hour trends.
In other words, if the intraday signal does not agree with the higher timeframe trend, the trade should be ignored and no signal arrow should appear on the chart.

Would someone @merryDay or @useThinkScript anyone else that are good with custom scripts please help implement this logic into the script? I’ve included the ThinkScript below for reference

# The Big Four Indicator
# https://usethinkscript.com/threads/the-big-four-chart-setup.14711/
# v1.0 - GiantBull and TradingNumbers
# v1.1 - TradingNumbers - hiding vertical lines by ddefault and added arrows
# v1.2 - TradingNumbers - added TMO
# v1.3 - TradingNumbers - hold trend input added
# v1.4 - TradingNumbers - simplified options, added filter with TMO, and set conditions per GianBull parameters
# v1.5 - TradingNumbers - removed TMO color filter percentChg GiantBull, added labels

# Info Labels

input showLabels = yes;
AddLabel(showLabels, " The Big Four v1.5 ", Color.WHITE);

# AK Trend

def aktrend_input1 = 3;
def aktrend_input2 = 8;
def aktrend_price = close;

def aktrend_fastmaa = MovAvgExponential(aktrend_price, aktrend_input1);
def aktrend_fastmab = MovAvgExponential(aktrend_price, aktrend_input2);
def aktrend_bspread = (aktrend_fastmaa - aktrend_fastmab) * 1.001;

def cond1_UP = if aktrend_bspread > 0 then 1 else 0;
def cond1_DN = if aktrend_bspread <= 0 then -1 else 0;

# ZSCORE

def zscore_price = close;
def zscore_length = 20;
def zscore_ZavgLength = 20;

def zscore_oneSD = StDev(zscore_price, zscore_length);
def zscore_avgClose = SimpleMovingAvg(zscore_price, zscore_length);
def zscore_ofoneSD = zscore_oneSD * zscore_price[1];
def zscore_Zscorevalue = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZv = Average(zscore_Zscorevalue, 20);
def zscore_Zscore = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZscore = Average(zscore_Zscorevalue, zscore_ZavgLength);

def cond2_UP = if zscore_Zscore > 0 then 1 else 0;
def cond2_DN = if zscore_Zscore <= 0 then -1 else 0;

# Ehlers

def ehlers_length = 34;

def ehlers_price = (high + low) / 2;
def ehlers_coeff = ehlers_length * ehlers_price * ehlers_price - 2 * ehlers_price * Sum(ehlers_price, ehlers_length)[1] + Sum(ehlers_price * ehlers_price, ehlers_length)[1];
def ehlers_Ehlers = Sum(ehlers_coeff * ehlers_price, ehlers_length) / Sum(ehlers_coeff, ehlers_length);

def cond3_UP = if close > ehlers_Ehlers then 1 else 0;
def cond3_DN = if close <= ehlers_Ehlers then -1 else 0;

# Anchored Momentum

def amom_src = close;
def amom_MomentumPeriod = 10;
def amom_SignalPeriod = 8;
def amom_SmoothMomentum = no;
def amom_SmoothingPeriod = 7;

def amom_p = 2 * amom_MomentumPeriod + 1;
def amom_t_amom = if amom_SmoothMomentum == yes then ExpAverage(amom_src, amom_SmoothingPeriod) else amom_src;
def amom_amom = 100 * ( (amom_t_amom / ( Average(amom_src, amom_p)) - 1));
def amom_amoms = Average(amom_amom, amom_SignalPeriod);


def cond4_UP = if amom_amom > 0 then 1 else 0;
def cond4_DN = if amom_amom <= 0 then -1 else 0;

# TMO

def tmo_length = 30; #def 14
def tmo_calcLength = 6; #def 5
def tmo_smoothLength = 6; #def 3

def tmo_data = fold i = 0 to tmo_length with s do s + (if close > GetValue(open, i) then 1 else if close < GetValue(open, i) then - 1 else 0);
def tmo_EMA5 = ExpAverage(tmo_data, tmo_calcLength);
def tmo_Main = ExpAverage(tmo_EMA5, tmo_smoothLength);
def tmo_Signal = ExpAverage(tmo_Main, tmo_smoothLength);
def tmo_color = if tmo_Main > tmo_Signal then 1 else -1;

def cond5_UP = if tmo_Main <= 0 then 1 else 0;
def cond5_DN = if tmo_Main >= 0 then -1 else 0;

# Strategy

input Strategy_Confirmation_Factor = 4;
input Strategy_FilterWithTMO = no;
input Strategy_ColoredCandlesOn = yes;
input Strategy_VerticalLinesOn = no;
input Strategy_HoldTrend = yes;

def cond_UP = cond1_UP + cond2_UP + cond3_UP + cond4_UP;
def cond_DN = cond1_DN + cond2_DN + cond3_DN + cond4_DN;

def direction = if cond_UP >= Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_UP) then 1
else if cond_DN <= -Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_DN) then -1
else if !Strategy_HoldTrend and direction[1] == 1 and cond_UP < Strategy_Confirmation_Factor and cond_DN > -Strategy_Confirmation_Factor then 0
else if !Strategy_HoldTrend and direction[1] == -1 and cond_DN > -Strategy_Confirmation_Factor and cond_UP < Strategy_Confirmation_Factor then 0
else direction[1];

plot signal_up = direction == 1 and direction[1] < 1;
signal_up.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
signal_up.SetDefaultColor(Color.WHITE);
signal_up.Hide();
signal_up.HideBubble();
signal_up.HideTitle();

plot signal_dn = direction == -1 and direction[1] > -1;
signal_dn.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
signal_dn.SetDefaultColor(Color.WHITE);
signal_dn.Hide();
signal_dn.HideBubble();
signal_dn.HideTitle();

AssignPriceColor(if Strategy_ColoredCandlesOn then if direction == 1 then Color.LIGHT_GREEN else if direction == -1 then Color.RED else Color.GRAY else Color.CURRENT);

AddLabel(showLabels, if Strategy_ColoredCandlesOn then if direction == 1 then " Bullish " else if direction == -1 then " Bearish " else " Neutral " else " N/A ",
if Strategy_ColoredCandlesOn then if direction == 1 then Color.LIGHT_GREEN else if direction == -1 then Color.RED else Color.GRAY else Color.BLACK);

AddVerticalLine(Strategy_VerticalLinesOn and signal_up, "Buy", Color.LIGHT_GREEN);
AddVerticalLine(Strategy_VerticalLinesOn and signal_dn, "Sell", Color.RED);

Alert(signal_up[1], "Buy", Alert.BAR, Sound.DING);
Alert(signal_dn[1], "Sell", Alert.BAR, Sound.DING);

 

[convertiblejay]

@antwerks I have come with another request.

With The TMO can you please help me with this as I can't get the coding right on my end. and this is the TMO script below

declare Lower;

input length = 14;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
with s
do s + (if c > getValue(o, i)
then 1
else if c < getValue(o, i)
then - 1
else 0);
def EMA5 = ExpAverage(data, calcLength);
plot Main = ExpAverage(EMA5, smoothLength);
plot Signal = ExpAverage(Main, smoothLength);
Main.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.HideBubble();
Signal.HideTitle();
addCloud(Main, Signal, color.green, color.red);
plot zero = if isNaN(c) then double.nan else 0;
zero.SetDefaultColor(Color.gray);
zero.hideBubble();
zero.hideTitle();
plot ob = if isNaN(c) then double.nan else round(length * .7);
ob.SetDefaultColor(Color.gray);
ob.HideBubble();
ob.HideTitle();
plot os = if isNaN(c) then double.nan else -round(length * .7);
os.SetDefaultColor(Color.gray);
os.HideBubble();
os.HideTitle();
addCloud(ob, length, color.light_red, color.light_red, no);
addCloud(-length, os, color.light_green, color.light_green);

# End Code TMO

 

[antwerks]

@antwerks I have come with another request.

With The TMO can you please help me with this as I can't get the coding right on my end. and this is the TMO script below View attachment 27414

declare Lower;

input length = 14;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
with s
do s + (if c > getValue(o, i)
then 1
else if c < getValue(o, i)
then - 1
else 0);
def EMA5 = ExpAverage(data, calcLength);
plot Main = ExpAverage(EMA5, smoothLength);
plot Signal = ExpAverage(Main, smoothLength);
Main.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.HideBubble();
Signal.HideTitle();
addCloud(Main, Signal, color.green, color.red);
plot zero = if isNaN(c) then double.nan else 0;
zero.SetDefaultColor(Color.gray);
zero.hideBubble();
zero.hideTitle();
plot ob = if isNaN(c) then double.nan else round(length * .7);
ob.SetDefaultColor(Color.gray);
ob.HideBubble();
ob.HideTitle();
plot os = if isNaN(c) then double.nan else -round(length * .7);
os.SetDefaultColor(Color.gray);
os.HideBubble();
os.HideTitle();
addCloud(ob, length, color.light_red, color.light_red, no);
addCloud(-length, os, color.light_green, color.light_green);

# End Code TMO

Try this

declare Lower;

input length = 14;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
with s
do s + (if c > getValue(o, i)
then 1
else if c < getValue(o, i)
then - 1
else 0);
def EMA5 = ExpAverage(data, calcLength);
plot Main = ExpAverage(EMA5, smoothLength);
plot Signal = ExpAverage(Main, smoothLength);
Main.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.HideBubble();
Signal.HideTitle();
addCloud(Main, Signal, color.green, color.red);
plot zero = if isNaN(c) then double.nan else 0;
zero.SetDefaultColor(Color.gray);
zero.hideBubble();
zero.hideTitle();
plot ob = if isNaN(c) then double.nan else round(length * .7);
ob.SetDefaultColor(Color.gray);
ob.HideBubble();
ob.HideTitle();
plot os = if isNaN(c) then double.nan else -round(length * .7);
os.SetDefaultColor(Color.gray);
os.HideBubble();
os.HideTitle();
addCloud(ob, length, color.light_red, color.light_red, no);
addCloud(-length, os, color.light_green, color.light_green);
def crossUp = Main crosses above Signal;
def crossDown = Main crosses below Signal;
def strongShift =
    AbsValue(Main - Signal) > 0.5;
def slopeUp = Main > Main[1];
def slopeDown = Main < Main[1];
def earlyBull =
    crossUp and slopeUp and Main < 0 and strongShift;

def earlyBear =
    crossDown and slopeDown and Main > 0 and strongShift;
plot BullArrow = if earlyBull then Main - 2 else Double.NaN;
plot BearArrow = if earlyBear then Main + 2 else Double.NaN;

BullArrow.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
BullArrow.SetDefaultColor(Color.GREEN);
BullArrow.SetLineWeight(3);

BearArrow.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
BearArrow.SetDefaultColor(Color.RED);
BearArrow.SetLineWeight(3);

# End Code TMO

 

[convertiblejay]

Try this

declare Lower;

input length = 14;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
with s
do s + (if c > getValue(o, i)
then 1
else if c < getValue(o, i)
then - 1
else 0);
def EMA5 = ExpAverage(data, calcLength);
plot Main = ExpAverage(EMA5, smoothLength);
plot Signal = ExpAverage(Main, smoothLength);
Main.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.AssignValueColor(if Main > Signal
then color.green
else color.red);
Signal.HideBubble();
Signal.HideTitle();
addCloud(Main, Signal, color.green, color.red);
plot zero = if isNaN(c) then double.nan else 0;
zero.SetDefaultColor(Color.gray);
zero.hideBubble();
zero.hideTitle();
plot ob = if isNaN(c) then double.nan else round(length * .7);
ob.SetDefaultColor(Color.gray);
ob.HideBubble();
ob.HideTitle();
plot os = if isNaN(c) then double.nan else -round(length * .7);
os.SetDefaultColor(Color.gray);
os.HideBubble();
os.HideTitle();
addCloud(ob, length, color.light_red, color.light_red, no);
addCloud(-length, os, color.light_green, color.light_green);
def crossUp = Main crosses above Signal;
def crossDown = Main crosses below Signal;
def strongShift =
    AbsValue(Main - Signal) > 0.5;
def slopeUp = Main > Main[1];
def slopeDown = Main < Main[1];
def earlyBull =
    crossUp and slopeUp and Main < 0 and strongShift;

def earlyBear =
    crossDown and slopeDown and Main > 0 and strongShift;
plot BullArrow = if earlyBull then Main - 2 else Double.NaN;
plot BearArrow = if earlyBear then Main + 2 else Double.NaN;

BullArrow.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
BullArrow.SetDefaultColor(Color.GREEN);
BullArrow.SetLineWeight(3);

BearArrow.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
BearArrow.SetDefaultColor(Color.RED);
BearArrow.SetLineWeight(3);

# End Code TMO

@antwerks it works perfect but is there a reason why the arrow is not showing for the recent green on Friday?

 

[antwerks]

@antwerks it works perfect but is there a reason why the arrow is not showing for the recent green on Friday?

View attachment 27416

what stock ticker and timeframe is that for? It might be because that it is still in a continuing trend -

 

[convertiblejay]

what stock ticker and timeframe is that for? It might be because that it is still in a continuing trend -

4hr and AAOI yes but when the trend started there was no arrow, could it be because it started during non market hours?

 

[antwerks]

4hr and AAOI yes but when the trend started there was no arrow, could it be because it started during non market hours?

TMO is not a leading indicator and in this case it is "smoothed twice". It will not immediately respond to a 4Hr trend with a candle like that- in this case if you see that, you HAVE to look to the smaller time frames to see "what Happened". the 1hr sure helps and the 30 minute fires way before in pre-market. You do not trade off the 4hr unless you are long term holding (weekly-daily-hourly and then entries are always micro time structures)

 

[convertiblejay]

TMO is not a leading indicator and in this case it is "smoothed twice". It will not immediately respond to a 4Hr trend with a candle like that- in this case if you see that, you HAVE to look to the smaller time frames to see "what Happened". the 1hr sure helps and the 30 minute fires way before in pre-market. You do not trade off the 4hr unless you are long term holding (weekly-daily-hourly and then entries are always micro time structures)

Thanks that makes sense, thanks for clarifying

 

[antwerks]

Thanks that makes sense, thanks for clarifying

You can overlay this onto your TMO and follow the colors for confirmation if you want

#TOS Indicators
#Home of the Volatility Box
#Indicator Name: Heiken Ashi Trend
#Full tutorial here: tosindicators.com/indicators/heikein-ashi


declare lower;

def heikenAshiClose = ohlc4;
def heikenAshiOpen = (heikenAshiOpen[1] + heikenAshiClose[1]) / 2;
def heikenAshiTrendUp = if heikenAshiClose >= heikenAshiOpen then 1 else 0;
def heikenAshiTrendDown = if heikenAshiClose < heikenAshiOpen then 1 else 0;
def heikenAshiTrendSignal = if heikenAshiTrendUp == 1 and heikenAshiTrendUp[1] == 1 then 1 else if heikenAshiTrendDown == 1 and heikenAshiTrendDown[1] == 1 then -1 else 0;

plot heikenAshiDots = if !IsNan(heikenAshiClose) then 0 else Double.NaN;
heikenAshiDots.SetPaintingStrategy(PaintingStrategy.POINTS);
heikenAshiDots.SetLineWeight(5);
heikenAshiDots.AssignValueColor(if heikenAshiTrendSignal == 1 then Color.GREEN else if heikenAshiTrendSignal == -1 then Color.RED else Color.YELLOW);

https://imgur.com/Z1F6hgj

 

[convertiblejay]

@antwerks to scan for this I would just have to put the script in thinkscript editor under a new study correct?

 

[antwerks]

@antwerks to scan for this I would just have to put the script in thinkscript editor under a new study correct?

YES