Bull Flag and Bear Flag Formations for ThinkorSwim

[BenTen]

Under the second condition (on the right) select RSI under Study.

 

[Buckbull]

Ken Rose updated the BFBF Indicator to be more sensitive to trend , here's the link https://tos.mx/6xou4xs

 

[tomsk]

@Buckbull Possible to post the code here in this study? I avoid Watchlist links as it is not possible to DELETE any such watchlists once it has been imported

 

[BenTen]

@tomsk I added the new code in the original thread.

 

[tomsk]

@BenTen Which post # is that ? #1 or #2 ? If so I'm good else please advise

 

[BenTen]

@tomsk Page #1 post #1

 

[tomsk]

@BenTen I looked at Ken Rose's code, it seems that his definition of a bull flag has no mention of a typical flag pole vide the following snippet extracted from his code

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]
and close > high[1];
def Bulltrigger = trend and MacdLow;

I reviewed Mobius implementation of a bull flag scan - he uses a fractal energy computation as part of the equation amongst other things.

 

[BenTen]

@tomsk Yup, this flag formation by Ken Rose is different from what you would look for in a typical flag pattern. Not sure why he called it that.

 

[tomsk]

@BenTen indeed

 

[Buckbull]

whatever he calls it , it works !!

 

[Buckbull]

@tomsk Do you have the Mobius script I would like to check it out .

 

[tomsk]

@Buckbull per your request here is Mobius Bull Flag scan

# Bull Flag on Pole - SCAN
# Mobius
# V01.02.2014

# Price trend - Upward leading to the pattern.
# Shape - A consolidation pattern forms.
# Volume - Recedes for best performance
# Confirmation - The pattern confirms as valid when price closes above the highest peak in the pattern.

input n = 21;

def upward = IsAscending(HL2, 65);
def p = (highest(high, 21) / close[65]) > 1.1;
def h = high;
def l = low;
def c = close;
def FE = (Log(Sum(TrueRange(h, c, l), n) /
(Highest(h, n) - Lowest(l, n))) /
Log) > .68;
def LowVol = volume < Average(volume, 50);

plot Flag = upward and p and FE and LowVol;

 

[ganq]

I put it in a watch list https://tos.mx/Nn4Oje1 criteria $20.00 stock with a volume at or above 250,000. then I add the Bullflag Bearflag into my watchlist . I just go through the watchlist seeing where the MA's are and where the candle is in relation to the BB whether they are pointed up, down or flat . Thats what dictates if I get into trade or not

Hi @Buckbull , which BB length and standard deviation have you found to be most useful on the daily chart? - and do you play weeklies or month or so out for Options expiry?

Thanks!

 

[tomsk]

Have you guys compared the two to see what one is more accurate ?

@Buckbull A bull flag is usually described with the notion of a flag pole. Mobius incorporates that in his code while in Ken Rose's study he does not.

 

[ganq]

@Buckbull A bull flag is usually described with the notion of a flag pole. Mobius incorporates that in his code while in Ken Rose's study he does not.

I have heard references about Mobius on this site so many times, who is he/she?

 

[tomsk]

@ganq he is a very talented and well versed in thinkscript, written thousands of wonderful studies, a professor, mathematician, programmer at large. Many of studies here like Opening Range Breakout, RSI Laguerre and others were written by him.

 

[Buckbull]

@Buckbull A bull flag is usually described with the notion of a flag pole. Mobius incorporates that in his code while in Ken Rose's study he does not.

Kens Alerts you after it breaks out of the Flag

 

[Buckbull]

@ganq I change the length to 21 and leave the deviations alone 2 -2 . I buy monthlys 1 strike out of the money I buy 2 months out . You would be shocked how good 2 months out moves and you dont get really crushed on the pullbacks . I brought Dec 20 140 call on JAZZ today I made 64% today on it . What I brought for $2.15 a contract I sold for $3.50

 

[Buckbull]

@Buckbull per your request here is Mobius Bull Flag scan

# Bull Flag on Pole - SCAN
# Mobius
# V01.02.2014

# Price trend - Upward leading to the pattern.
# Shape - A consolidation pattern forms.
# Volume - Recedes for best performance
# Confirmation - The pattern confirms as valid when price closes above the highest peak in the pattern.

input n = 21;

def upward = IsAscending(HL2, 65);
def p = (highest(high, 21) / close[65]) > 1.1;
def h = high;
def l = low;
def c = close;
def FE = (Log(Sum(TrueRange(h, c, l), n) /
(Highest(h, n) - Lowest(l, n))) /
Log) > .68;
def LowVol = volume < Average(volume, 50);

plot Flag = upward and p and FE and LowVol;

Does He have one for a Bear Flag as well ?

 

[tomsk]

@Buckbull He sure does, here is the companion bear flag scan. Hope this helps

# Bear Flag on Pole - SCAN
# Mobius
# V01.02.2014
# Price trend - Downward leading to the pattern. The price should fall for at least 2 months.
# Shape - A consolidation pattern forms. It usually doesn't look like a flag or pennant, just a pause in the price decline.
# Volume - Recedes for best performance
# Confirmation - The pattern confirms as valid when price closes below the lowest trough in the pattern.

def o = open;
def h = high;
def l = low;
def c = close;
def BBl = BollingerBands().LowerBand;
def KCl = KeltnerChannels().Lower_Band;
def downward = isDescending(close, 42);
def p = (c[42] / lowest(l, 21)) > 1.2;
def squeezeLow = if BBl < KCl
                   then squeezeLow[1]
                   else if BBl crosses above KCl
                   then l
                   else if BBl > KCl and l < squeezeLow[1]
                        then l
                        else squeezeLow[1];
def NotSqueeze = BBl < KCl;
plot Flag = if downward and
               p and
               NotSqueeze and
               close crosses below squeezeLow
            then 1
            else Double.NaN;
# End Code Bear Flag