Charting Wealth Indicator for ThinkorSwim

[theelderwand]

Hi,

This is the blog: http://chartingwealth.com/ where he talks about a weekly chart crossover going up for long and going down for short.

My apologies that I didn't post the indicators. It took me some money to figure out the indicators and finally get it working in ToS. Here's the indicator.

The Price Percent Oscillator he talks about:

# Price Percent Oscillator
# Author theelderwand

declare lower;

input fast = 10;
input slow = 24;

def slowEMA = ExpAverage(close, slow);
plot ppo = 100 * (ExpAverage(close, fast) - slowEMA) / slowEMA;

The EMA that he talks about

# Charting Wealth Exponential Moving Average
# Author theelderwand

input length = 8;

def ppo = WeeklyAndDailyPPO(10, 24, 10, 24).WeeklyPPO;
plot AvgExp = ExpAverage(ppo, length);

Here's the CrossOverSignal code

# Charting Wealth CrossOver Signal
# Author theelderwand
declare lower;

input fast = 10;
input slow = 24;

def slowEMA = ExpAverage(close, slow);
def cwppo = 100 * (ExpAverage(close, fast) - slowEMA) / slowEMA;

input length = 8;

def ppo = WeeklyAndDailyPPO(10, 24, 10, 24).WeeklyPPO;
def cwavgexp = ExpAverage(ppo, length);

plot buy = (cwavgexp crosses below cwppo);
plot sell = (cwavgexp crosses above cwppo);

If you listen to the podcast, he called a weekly crossover on GLD, you can see below in the chart. He uses weekly two days and 4 hour charts. Here you go,

If you are looking for a strategy to get alerts and auto trade based on them, here's the strategy,

# Charting Wealth Strategy
# Author theelderwand

input fast = 10;
input slow = 24;

def slowEMA = ExpAverage(close, slow);
def cwppo = 100 * (ExpAverage(close, fast) - slowEMA) / slowEMA;

input length = 8;

def ppo = WeeklyAndDailyPPO(10, 24, 10, 24).WeeklyPPO;
def cwavgexp = ExpAverage(ppo, length);

def x = (cwavgexp crosses above cwppo);
def y = (cwavgexp crosses below cwppo);

AddOrder(OrderType.BUY_AUTO, x equals 1, price=open[-1], 100, Color.GREEN, Color.GREEN, "Buy");
AddOrder(OrderType.SELL_AUTO, y equals 1, price=open[-1], 100, Color.RED, Color.RED, "Sell");

Here's the shareable links

Charting Wealth PPO: https://tos.mx/18mB8nW
Charting Wealth EMA: https://tos.mx/8q5aTGU
Charting Wealth CrossOver signal: https://tos.mx/HlI3V9n
Charting Wealth Chart Setup: https://tos.mx/mwNSmOI


Enjoy!! As always feedback welcome!!

 

[horserider]

Here is an attempt to match Trading Wealth. Hope it is close.

Just playing around with it. Not exact indicators but might be a workable copy of the overall strategy. Look and see what ya'll think.
https://tos.mx/x7VGtb1

 

[MBF]

@horserider Nice to see someone else using MAs as a lower. I thought I might be loony for doing so.

 

[opsjesse]

Hi there, I'm new to thinkscript but very familiar with the chartingwealth strategy. Is the above script just for adding the indicator to thinkorswim for charting, or is there also a way to use this within the stock scanner? That would be incredibly helpful.

 

[MerryDay]

Welcome @opsjesse to the forum! With few exceptions, the studies found in this forum can be selected in the scanner just as the TOS built-in studies are selected.

I can walk you through setting up the scanner:

1. Create Study:​

Copy&Paste the Crossover Signal Study from the first post into your studies tab or if you are uncertain of that procedure, used this Shared Chart Link: http://tos.mx/wAGjdT1 And follow these instructions to automatically load the study --> Easiest way to load shared links ​

​

2. The MOST IMPORTANT step of this process is that when prompted in either method, you save the study under the name: ChartingWealth_crossover. That is the study name used in the scanner so if you miss this step the scanner won't work.​

​

3. Load Scanner:​

Shared Scanner Link: http://tos.mx/tpI5hib​

 

[opsjesse]

thank you for your help!

 

[mansor]

@MerryDay @theelderwand could you kindly advise me the "strategy" from post #1 is suitable for which timeframe (3mWk, 3m2d, or 5d4h)? Or should it be applied to each timeframe? thanks in advance

 

[MerryDay]

@mansor Hi. This looks like an interesting twist to the moving average crossover.
I have a huge respect for @theelderwand's contributions and have in the past enjoyed podcasts of Charting Wealth.

While I haven't used this strategy, haven't listened to the podcasts, I can say that moving average crossovers can be used on all timeframes.
That being said, if you read post#1 and look at the charts. It does state, he looks for signals as follows:

If you listen to the podcast, he called a weekly crossover on GLD, you can see below in the chart. He uses weekly two days and 4 hour charts.

Caveat: Moving Averages strategies have their own pros & cons which should be googled before putting this strategy into use:
https://usethinkscript.com/threads/lagging-indicator-accuracy-in-thinkorswim.15624/