Ken Rose of TD Ameritrade recently shared a watchlist column that shows potential bull flag and bear flag patterns being formed. I modified it a little so that it can also plot bull flag signal and also bear flag signal on your chart.
Here is the indicator
Shareable link: http://tos.mx/c4jNKVn
Code:
# Follow @KRose_TDA on twitter for updates to this and other scripts
# Thanks to Alan Burch for emoji enhancement
# Thumbs up = potential Bull Flag - Thumbs Down potential bear flag
# To use for scan place # signs before 2 Addlabel statements.
# For Bull Flag Scan change "def" before Bulltrigger statement to "plot"
# For Bear Flag scan change "def" before BearTrigger Statement to "Plot"
#Enter desired distance of flag by changing FlagDistance value
def FlagDistance = .75; #Percent of ATR from high/low
##############Bull Flag
def StockPrice = close>=10;
##############ThinkScriptWebcast##################
def FATR = ATR();
def trigATR = (highest(high,5)-close)> (FlagDistance*FATR); #flag slopping down
def PriceSma = close>simpleMovingAvg("length"=30); #Trend still in force
##########################################
def trend = simpleMovingAvg("length"=30)> (simpleMovingAvg("length"=30)[5]);
def MacdLow = macdHistogram(8,17,9)[1]< macdHistogram(8,17,9)[2]and close[1]<close[2];
#def Momentum = macdHistogram(8,17,9) > macdHistogram(8,17,9)[1];
##############Bear Flag
def StockPriceBear = close>=10;
def trendBear = simpleMovingAvg("length"=30)< (simpleMovingAvg("length"=30)[5]);
def MacdHighBear = macdHistogram(8,17,9)[1]> macdHistogram(8,17,9)[2]and close[1]>close[2];
#########################################
##############ThinkScriptWebcast##################
def BFATR = reference ATR();
def BtrigATR = (close-lowest(low,5))> (FlagDistance*FATR); #flag slopping up
def BPriceSma = close<simpleMovingAvg("length"=30); #Trend still in force
##########################################
def Bulltrigger = trend and MacdLow and trigATR and PriceSma;
def BearTrigger = TrendBear and MacdHighBear and BtrigATR and BPriceSma ;
############################################################
#AddLabel(yes, if Bulltrigger then "Bull Flag" else " ",Color.PLUM);
#AddLabel(yes, if Bulltrigger then "Bull Flag" else if BearTrigger then "Bear Flag" else " ",Color.black);
#AssignBackgroundColor(if Bulltrigger then color.YELLOW else if bearTrigger then color.LIGHT_RED else color.WHITE);
# Plot Confirmed Signals
plot bullish = Bulltrigger;
bullish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
bullish.SetDefaultColor(Color.CYAN);
bullish.SetLineWeight(1);
plot bearish = BearTrigger;
bearish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
bearish.SetDefaultColor(Color.CYAN);
bearish.SetLineWeight(1);
Watchlist
Shareable Link: https://tos.mx/6xou4xs
Code:
# Follow @KRose_TDA on twitter for updates to this and other scripts
# Thanks to Alan Burch for emoji enhancement
# Thumbs up = potential Bull Flag - Thumbs Down potential bear flag
# To use for scan place # signs before 2 Addlabel statements.
# For Bull Flag Scan change "def" before Bulltrigger statement to "plot"
# For Bear Flag scan change "def" before BearTrigger Statement to "Plot"
#Enter desired distance of flag by changing FlagDistance value
def FlagDistance = .75; #Percent of ATR from high/low
##############Bull Flag
def StockPrice = close>=10;
##############ThinkScriptWebcast##################
def FATR = ATR();
def trigATR = (highest(high,5)-close)> (FlagDistance*FATR); #flag slopping down
def PriceSma = close>simpleMovingAvg("length"=30); #Trend still in force
##########################################
def trend = simpleMovingAvg("length"=30)> (simpleMovingAvg("length"=30)[5]);
def MacdLow = macdHistogram(8,17,9)[1]< macdHistogram(8,17,9)[2]and close[1]<close[2];
#def Momentum = macdHistogram(8,17,9) > macdHistogram(8,17,9)[1];
##############Bear Flag
def StockPriceBear = close>=10;
def trendBear = simpleMovingAvg("length"=30)< (simpleMovingAvg("length"=30)[5]);
def MacdHighBear = macdHistogram(8,17,9)[1]> macdHistogram(8,17,9)[2]and close[1]>close[2];
#########################################
##############ThinkScriptWebcast##################
def BFATR = reference ATR();
def BtrigATR = (close-lowest(low,5))> (FlagDistance*FATR); #flag slopping up
def BPriceSma = close<simpleMovingAvg("length"=30); #Trend still in force
##########################################
def Bulltrigger = trend and MacdLow and trigATR and PriceSma;
def BearTrigger = TrendBear and MacdHighBear and BtrigATR and BPriceSma ;
AssignBackgroundColor(if Bulltrigger then color.YELLOW else if bearTrigger then color.LIGHT_RED else color.WHITE);
##########################################################
AddLabel(yes, if Bulltrigger then "👍" else if BearTrigger then "👎" else " ", if BearTrigger then Color.dark_red else if Bulltrigger then Color.dark_GREEN else Color.ORANGE);
AssignBackgroundColor(color.light_ORANGE);
############################################################
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