Confirmation Candles Indicator For ThinkorSwim

[Cybersloth]

@HODL-Lay-HE-hoo! Thank you for your suggestions re: this approach. I'm not a daytrader but am intrigued with the concept as espoused by @Christopher84 and yourself, although I don't think I quite understand it fully. In the above helpful image that you thoughtfully included, are you buying when the price moves above the horizontal green line on the EMAD and selling when it drops beneath? If so, I notice there seem to be some whipsaws near the center of the image and I wonder how such whipsaws may be managed. Likewise, are you selling short when the EMAD horizontal line turns red and the price moves beneath it? If that is not how this system functions, would you mind circling the spots where you are signalled to go long, sell, short, cover? Many thanks for posting your thoughts.

 

[lolreconlol]

@Christopher84 what strategy are you using nowadays?

 

[Glefdar]

@Admiral747
http://tos.mx/L2bR3vL

I added the Triple Exhaustion MTF (vertical lines (the ones labeled “3X_ “ the others are the options expiration lines in the screenshot below) not the painted candles) to use with the daily (same for the old one from the grid that did not work for you on the daily it should work with these settings —>... just set agg one and two both to "Day" agg 3 to "week" and agg 4 to "month"

Thanks for sharing this. I am having a hard time finding where the candle colors can be changed. I would like to modify the dull grayish color to be easier to see. Would you be so kind as to help me find where this color is set?

 

[HODL-Lay-HE-hoo!]

Thanks for sharing this. I am having a hard time finding where the candle colors can be changed. I would like to modify the dull grayish color to be easier to see. Would you be so kind as to help me find where this color is set?

I’ll change it but if you want to this is how:

1. Edit studies
2. Right click the study and choose edit sources
3. Near the very bottom of the code you will see a section beginning with “AssignPriceColor” at the end of that section is: Color.Gray else Color.Current);
4. Change gray to the desired color.

 

[HODL-Lay-HE-hoo!]

This is great! Any chance of a video? How do you add this to the mobile version? Any way to load the whole study set, or do you need to add one at a time?

@HODL-Lay-HE-hoo! how would you approach this? I made some easy $ on a paper trading account with the first short after the red dot, would you short again as it entered the resistance again? Or would you wait since EMAD isn't near the white line? This is SPY, extended hours off, 10 minute chart.

https://imgur.com/a/5IKSqC9

It looks like your agg settings are 1hr 2hrs… if your on the 10min change them to 10/15 is my recommendation.

Best to trade with the trend not against it (hourly) in my opinion

I would have been out of the short as soon as it approached that bottom C3 line or the ATR seeing as the trend is clearly bullish and EMAD is above the zero line.

I would not have re entered short when it crossed back into the zone based on that alone. I would wait for price to pullback and test breakdown below the zone. In this case after your image the pullback was wear and remained inside the zone. On top of that the c3 lines and all other indications remained green.

I may look for a wick crossing the top of the supply zone after a decent size move up to short and be in and out quick. Also I look at the 3/5/10 usually only 2 timeframes though because you can see a potential entry one the lower time frame and confirm entry with the higher timeframe.

 

[HODL-Lay-HE-hoo!]

@HODL-Lay-HE-hoo! Thank you for your suggestions re: this approach. I'm not a daytrader but am intrigued with the concept as espoused by @Christopher84 and yourself, although I don't think I quite understand it fully. In the above helpful image that you thoughtfully included, are you buying when the price moves above the horizontal green line on the EMAD and selling when it drops beneath? If so, I notice there seem to be some whipsaws near the center of the image and I wonder how such whipsaws may be managed. Likewise, are you selling short when the EMAD horizontal line turns red and the price moves beneath it? If that is not how this system functions, would you mind circling the spots where you are signalled to go long, sell, short, cover? Many thanks for posting your thoughts.

I trade options. In this case entry was at the green arrow after the candles and c3 line turned green and broke out of the demand zone. The long wicks past the Near Term Levels upper level (the dashed lines) indicates for me to sell or risk off most of my position depending on the expiration etc. but for close to expiration generally at the first sign of trouble I’m out especially if I’m in the green. Another good entry based on that Screenshot would have been after the chop when the wick of the red candle touches the demand zone and turns bullish the next candle or two. And if you miss that one in the next few candles the wick touches the ema / near term level (the dashed lines are green indicating bullish price action). I try (doesn’t always work out) to enter on a pullback wick and get out of dodge selling most my position. The EMAD lower for this case served as confirmation of entry. Basically if EMAD emas hit a line watch for a bounce, if candles hit the ema or ATR watch for a bounce etc. When the lower line of EMAD is stepping up and price is pulling back expect a bounce up if the EMAD lower / upper steps down look for rejection if price moving up.

I do not enter and exit a rules based system. If you want that sort of thing with entry and exit points use TS_V9 and confirm entry using the other indicators. Will post an illustration soon but in short depending on where the arrow plots for TS_V9 I will wait for a pullback to enter or not enter.

 

[HODL-Lay-HE-hoo!]

https://imgur.com/FnGt1zv

https://imgur.com/mKtB1eX

https://imgur.com/ufjMNTh

https://imgur.com/dnQe7S5

 

[Glefdar]

I’ll change it but if you want to this is how:

1. Exit studies
2. Right click the study and choose edit sources
3. Near the very bottom of the code you will see a section beginning with “AssignPriceColor” at the end of that section is: Color.Gray else Color.Current);
4. Change gray to the desired color.

Thank you. I notice that most of the studies in the shared chart have a paintbars options. I see that the study painting the bars in that chart layout is the Blast Off one. It seems pretty simple to me. Much simpler than the one you use on the intraday time frames called Confirmation Candles. That is the one that I've used with some good results on intraday charts, so I was looking for a daily equivalent. Do you have plans to create a daily time frame version of Confirmation Candles? In the meantime I will give this Blast Off study a try but looking at it now, it doesn't seem that strong by comparison. For the last several months the candle colors don't seem to be very strongly predictive of whether the trend is up or down, as it's just painting gray most of the time.

 

[lolreconlol]

It looks like your agg settings are 1hr 2hrs… if your on the 10min change them to 10/15 is my recommendation.

Best to trade with the trend not against it (hourly) in my opinion

I would have been out of the short as soon as it approached that bottom C3 line or the ATR seeing as the trend is clearly bullish and EMAD is above the zero line.

I would not have re entered short when it crossed back into the zone based on that alone. I would wait for price to pullback and test breakdown below the zone. In this case after your image the pullback was wear and remained inside the zone. On top of that the c3 lines and all other indications remained green.

I may look for a wick crossing the top of the supply zone after a decent size move up to short and be in and out quick. Also I look at the 3/5/10 usually only 2 timeframes though because you can see a potential entry one the lower time frame and confirm entry with the higher timeframe.

Thank you @HODL-Lay-HE-hoo! ! How do you get this to show up correctly on mobile?

 

[HODL-Lay-HE-hoo!]

Thank you. I notice that most of the studies in the shared chart have a paintbars options. I see that the study painting the bars in that chart layout is the Blast Off one. It seems pretty simple to me. Much simpler than the one you use on the intraday time frames called Confirmation Candles. That is the one that I've used with some good results on intraday charts, so I was looking for a daily equivalent. Do you have plans to create a daily time frame version of Confirmation Candles? In the meantime I will give this Blast Off study a try but looking at it now, it doesn't seem that strong by comparison. For the last several months the candle colors don't seem to be very strongly predictive of whether the trend is up or down, as it's just painting gray most of the time.

This is what I use to trade intraday:

https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-117629

I only use the gray candle stuff on active trade daily chart. Link below.

http://tos.mx/PQjYtIv

I do not use confirmation candles study.

The bull bear v5 painted candles is added into the C4_Max_V5 code. To use it on the daily change the aggregation settings to daily and weekly.

 

[HODL-Lay-HE-hoo!]

Thank you @HODL-Lay-HE-hoo! ! How do you get this to show up correctly on mobile?

I shared a link called C4_Max_V5_Mobile a few pages back.

The basic plot is you will have to go to settings and change the following:


Turn off everything colored purple from my screenshots

Change the colors of the other plots and the line weight for some

https://imgur.com/tKOTcrn

https://imgur.com/svkh1Lw

https://imgur.com/4u94ciO

https://imgur.com/f9woQgu

 

[Glefdar]

This is what I use to trade intraday:

https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-117629

I only use the gray candle stuff on active trade daily chart. Link below.

http://tos.mx/PQjYtIv

I do not use confirmation candles study.

The bull bear v5 painted candles is added into the C4_Max_V5 code. To use it on the daily change the aggregation settings to daily and weekly.

The C4_Max_V5 code seems to work well on the daily chart, have you found it problematic on that time frame and is that why you use the gray candles study for the daily chart?

 

[phatboyz]

I shared a link called C4_Max_V5_Mobile a few pages back.

The basic plot is you will have to go to settings and change the following:


Turn off everything colored purple from my screenshots

Change the colors of the other plots and the line weight for some

https://imgur.com/tKOTcrn

https://imgur.com/svkh1Lw

https://imgur.com/4u94ciO

https://imgur.com/f9woQgu

I cant find the C4_Max_V5_Mobile link do you mind sharing again pls?

 

[Admiral747]

https://imgur.com/FnGt1zv

https://imgur.com/mKtB1eX

https://imgur.com/ufjMNTh

https://imgur.com/dnQe7S5

Hello @
HODL-Lay-HE-hoo! I was wondering if you can post a link to the 'C4_Max_V5_Mobile'? I can't find it in search and just using 'mobile' doesn't yield results that show both RegularBuy_2, RegularSell_2, ExtremeBuy_2 and ExtremeSell_2.

 

[HODL-Lay-HE-hoo!]

Good people, I have taken the liberty of making a watchlist column that indications a TS_V9 arrow is present within "x" number of bars colored green and red. (right click and edit sources to change the number of bars - Also do not forget to adjust the settings ATR period and ATR factor to whichever settings you prefer for a given TF)
https://tos.mx/qZI3q0Z


Also make a column for the Triple exhaustion arrow within "x" number of bars.
https://tos.mx/WRUn4EN

 

[JoseB]

Hey everyone. I've read pages and pages on this thread, but I'm still really confused as to how to even BEGIN to use this strategy/indicator.

Here are some things that confuse me:

1. Am I supposed to use the Confirmation Candle indicator or the C3 Max indicator?
2. What time frame(s) works best? I see some people mention the 3-minute chart, and then I see @Christopher84 say to use the monthly chart. I am extremely confused by this.
3. I applied the latest version of Confirmation Candle to the SPY 5-minute chart and there were arrows everywhere. How should one begin to make sense of that? Are there any videos that can maybe consolidate all the information in this thread to make it a bit more digestible?

Thank you to all the guys who have invested so much time into this thread. I'm not trying to judge at all. I just want to try to get on the same page as those really benefiting from these indicators.

 

[HODL-Lay-HE-hoo!]

Hey everyone. I've read pages and pages on this thread, but I'm still really confused as to how to even BEGIN to use this strategy/indicator.

Here are some things that confuse me:

1. Am I supposed to use the Confirmation Candle indicator or the C3 Max indicator?
2. What time frame(s) works best? I see some people mention the 3-minute chart, and then I see @Christopher84 say to use the monthly chart. I am extremely confused by this.
3. I applied the latest version of Confirmation Candle to the SPY 5-minute chart and there were arrows everywhere. How should one begin to make sense of that? Are there any videos that can maybe consolidate all the information in this thread to make it a bit more digestible?

Thank you to all the guys who have invested so much time into this thread. I'm not trying to judge at all. I just want to try to get on the same page as those really benefiting from these indicators.

1. Most are using C3_Max Spark or TS_V9 or both. This is what I use among others. It is C3_Max_Spark with TS_V9 (arrows), C3_MF_Line, etc. http://tos.mx/H7Xrhwx (see this post for screenshots https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-117629)

2. Timeframe depends on personal preference and your trading style (what are you trading? Options, Shares, Futures? How often? Daily, Weekly?) As for the higher timeframes you see posted... Generally speaking one would look at the monthly/weekly/daily before market open as you will see major support resistance levels (or supply and demand zones) also when trend exhaustion, TS_V9, Spark arrows, etc. occur on the higher timeframes this will generally result in some significant moves while trading the lower timeframes. Basically we look at them to look at the longer term trend because it is usually best to trade with the higher timeframe trend not against it. @Christopher84 basic strategy involves using the hourly to determine which direction to trade meaning if the hourly is in an up-trend only take long trades - if the hourly is in a down-trend only take short trades (the trade entry and exits are done using the 5min chart).

3. My recommendation... do not use confirmation candles use the C3_Max_Spark & or TS_V9 or both. turn off all arrows except for Spark Up Spark Down and TS_V9 arrows (if you load the style linked above it will already be setup) (see answer 1). As for the issue of too many arrows see the screenshot from the post linked above where I point out a great entry and higher risk entry (although it may not have actually been higher risk but more so one was a great entry and the other a good entry I suppose) my point being when the price has not broken down out of the supply zone you can ignore the down arrows and vice versa with up arrows - you could also choose to ignore the arrows that go against the EMA cloud or the C3 line color. I suggest watching two charts 3min and 10min or whatever you so choose. When you see a directional indication on the lower timeframe wait to see if the higher timeframe confirms that direction as this will make for a safer entry.

Test now trade later... I am not a big advocate of paper trading as it is not the live market. IF you have the discipline... trade one share at a time, one contract at a time until you find what setup works for you.

May the odds be ever in your favor.

Good day.

 

[GT326]

Good people, I have taken the liberty of making a watchlist column that indications a TS_V9 arrow is present within "x" number of bars colored green and red. (right click and edit sources to change the number of bars - Also do not forget to adjust the settings ATR period and ATR factor to whichever settings you prefer for a given TF)
https://tos.mx/qZI3q0Z


Also make a column for the Triple exhaustion arrow within "x" number of bars.
https://tos.mx/WRUn4EN

@HODL-Lay-HE-hoo! This is really helpful. This saves a lot of time compared to scanning individually.
Can you please add watchlist for EMAD (crossing zero line) ?

 

[METAL]

1. Most are using C3_Max Spark or TS_V9 or both. This is what I use among others. It is C3_Max_Spark with TS_V9 (arrows), C3_MF_Line, etc. http://tos.mx/H7Xrhwx (see this post for screenshots https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-117629)

2. Timeframe depends on personal preference and your trading style (what are you trading? Options, Shares, Futures? How often? Daily, Weekly?) As for the higher timeframes you see posted... Generally speaking one would look at the monthly/weekly/daily before market open as you will see major support resistance levels (or supply and demand zones) also when trend exhaustion, TS_V9, Spark arrows, etc. occur on the higher timeframes this will generally result in some significant moves while trading the lower timeframes. Basically we look at them to look at the longer term trend because it is usually best to trade with the higher timeframe trend not against it. @Christopher84 basic strategy involves using the hourly to determine which direction to trade meaning if the hourly is in an up-trend only take long trades - if the hourly is in a down-trend only take short trades (the trade entry and exits are done using the 5min chart).

3. My recommendation... do not use confirmation candles use the C3_Max_Spark & or TS_V9 or both. turn off all arrows except for Spark Up Spark Down and TS_V9 arrows (if you load the style linked above it will already be setup) (see answer 1). As for the issue of too many arrows see the screenshot from the post linked above where I point out a great entry and higher risk entry (although it may not have actually been higher risk but more so one was a great entry and the other a good entry I suppose) my point being when the price has not broken down out of the supply zone you can ignore the down arrows and vice versa with up arrows - you could also choose to ignore the arrows that go against the EMA cloud or the C3 line color. I suggest watching two charts 3min and 10min or whatever you so choose. When you see a directional indication on the lower timeframe wait to see if the higher timeframe confirms that direction as this will make for a safer entry.

Test now trade later... I am not a big advocate of paper trading as it is not the live market. IF you have the discipline... trade one share at a time, one contract at a time until you find what setup works for you.

May the odds be ever in your favor.

Good day.

Listen to what @HODL-Lay-HE-hoo! says about paper trading. I feel that too many people push paper trading and it is no where near the same as real time trading. I can literally go to paper and profit a couple thousand easy but when i trade real time that just doesn't happen. Be careful paper trading and thinking you are going to have the same results.

 

[JoseB]

Listen to what @HODL-Lay-HE-hoo! says about paper trading. I feel that too many people push paper trading and it is no where near the same as real time trading. I can literally go to paper and profit a couple thousand easy but when i trade real time that just doesn't happen. Be careful paper trading and thinking you are going to have the same results.

I never fully understood the paper trading thing. I've lost a good chunk of money trying to trade options and I'm willing to lose some more so long as I feel I have a good guide.