Confirmation Candles Indicator For ThinkorSwim

[texas_trader]

Thank you to everyone who attended the discussion, and to those of you who posed such excellent and insightful questions! And a huge thanks to @barbaros, @Chuck, and the B4 community for hosting the discussion! It's amazing to be surrounded by so many talented, exceptional, and kind individuals. What a privilege this has been. Have great weekend everyone!

Thank you for providing insight into your usage of the CC candle and B4 indicators, it was our privilege to have you lead that session. Although I had gone through the details on page 1 couple times, today's session brought out the subtle aspects that have to be considered while interpreting what is seen on charts and indicators. Thank you once again.

 

[graci117]

@Christopher84 - Thanks so much for the session today. It was super helpful! I wish it was recorded.
I am trying to confirm my understanding of the clouds and the channels. Please see a 5 minute chart of NFLX today. At about 10:45 a red cloud formed but the channel was green. When would you have exited if you were in a trade? If you were not in a trade would you look get in at about 11:20-11:25?
This might be a good recap and very helpful to everyone who missed the session. Thanks again!!

 

[VickyVJ]

VickVJ,
Thank you for bringing this to my attention! The issue has been resolved and the revised code is posted on pg.1.

Thank you Christopher84!

 

[Trader Raider]

Thank you for bringing this to my attention! It has been fixed! I have posted the revised codes on page 1. The same issue was in the code for MTF STARC just incase anyone needs to reload the code. Hopefully that should take care of it. Thanks again!!!

Thank you, Christopher! Your revised code is plotting upper and lower clouds for all the timeframe combinations now. Wow!

 

[Christopher84]

@Christopher84 - Thanks so much for the session today. It was super helpful! I wish it was recorded.
I am trying to confirm my understanding of the clouds and the channels. Please see a 5 minute chart of NFLX today. At about 10:45 a red cloud formed but the channel was green. When would you have exited if you were in a trade? If you were not in a trade would you look get in at about 11:20-11:25?
This might be a good recap and very helpful to everyone who missed the session. Thanks again!!

Hi Graci!
I would have been looking to reduce my position size when price was above the cloud. The candle at 10:50 opened above the cloud which would’ve been an ideal opportunity. I would have looked to re-enter the trade around 11:30 (red candle green channel nearing support). However, I would’ve have fully exited the trade around 12:00 when the candles and channel were showing signs of the trend environment changing. Hope that helps!

 

[graci117]

I would have been looking to reduce my position size when price was above the cloud. The candle at 10:50 opened above the cloud which would’ve been an ideal opportunity. I would have looked to re-enter the trade around 11:30 (red candle green channel nearing support). However, I would’ve have fully exited the trade around 12:00 when the candles and channel were showing signs of the trend environment changing. Hope that helps!

That helps tremendously!! That is exactly what I wanted to hear except I am not sure about 11:30. At 11:30 it is green channel with red candles however the support is only the VWAP. The is no intermediate or short term support there (no channel support). Can you please confirm? Thanks!!

 

[ALV]

Thank you to everyone who attended the discussion, and to those of you who posed such excellent and insightful questions! And a huge thanks to @barbaros, @Chuck, and the B4 community for hosting the discussion! It's amazing to be surrounded by so many talented, exceptional, and kind individuals. What a privilege this has been. Have great weekend everyone!

Thank you so much for the detailed explanation provided during the session yesterday. I totally agree with @raap, it really makes a difference to hear from you how the indicator works and how it is complemented with B4. Again, thank you!!

 

[alexsmith3546]

@Christopher84 thank you for the session yesterday and for taking the time to provide such concrete examples. I wrote down from some notes from memory today ( I tend to remember better when I write down stuff) and I was wondering if you (and anyone else who attended the session) would be so kind to give a quick glance and mention if anything is wrong (or if i missed any key points)

Notes about Consensus candles

1. When the trend is upwards and the resistance lines are also green , the trend is positive
2. when you see a red cloud , look at taking profits there
3. if your price spikes past the solid resistance line, you can often expect a rejection there unless the price action is really strong
4. Longer the resistance line, the hard it is to break past it and rejection is likely
5. when the dotted lines in the mtf indicator change from green to red, its time to perhaps look at exiting (Grey is a period of indecision)
6. when there is a squeeze alert and the trend is red (bearish), it can squeeze down hard too, squeezes might not always be positive
7. consensus levels are just an indicator of how many indicators are in agreement, Dont use that to define your trend (positive is always much better though) ,do look at the overall trend and if the trend lines are bearish or bullish or indecisive
8. when a cloud is floating over resistance lines, chances are a stock might reach there at some point but not currently
9. Always look at the angle of the B4 indicator, while a red cloud might indicate time to take profits , the angle of the indicator can indicate potential directions for trade, for example if its trending down exit the trade else if it trends up, keep an eye on the trend and the price action but ensure you can have a trade exit ready in case things go south
10. A trend can continue on a red cloud for while as long as the resistance lines are positive (green), the B4 MACDBB dotted line is above the BB top band and is green . Do note a trend can still continue if the MACDBB line is grey (period of indecision) due to strong momentum but be ready to exit if needed. Here is an example.
    
    
    

In this example, you could have also exited or reduced the position when the candle was above the cloud.



11. When both the interim resistance lines get close to each other (this is a period of consolidation) and the BB bands are contracted, a squeeze can happen but wait for the MACDBB line to break out (or break below the bands) before committing to a stock as shown below

12. Red bars near support lines in a green channel are a good place to get an entry Also look at green clouds as ways to get into the setup as they are good rejection points of the price going down further. However wait for confirmation such as higher highs and higher lows

Thank you again for such an incredible indicator and taking time to help answer some of the questions we had.

 

[Christopher84]

That helps tremendously!! That is exactly what I wanted to hear except I am not sure about 11:30. At 11:30 it is green channel with red candles however the support is only the VWAP. The is no intermediate or short term support there (no channel support). Can you please confirm? Thanks!!

That’s right! The vwap is the support I was referring to.

 

[graci117]

That’s right! The vwap is the support I was referring to.

Thanks @Christopher84 !!

 

[s1111]

Thank you @alexsmith3546 for the detail of how to use this script. People who are not VIP and not in discord like to thank you and anyone who can share any more info is appreciated. Thank you in advance!!

 

[tjlizwelicha]

I have been using the original time frames that are available from tos. I am not sure how many days to put into a 2m, 3m nor 10m timeframe. Could you let me know if how many days you are using? I was going to use 2min 1D:2m, 1D:3m, 1D:10m. Is this what you are using? It is much easier with Trading View because it is simple as picking a time. lol. I will update the newest version from page 1. Thanks again.

 

[tjlizwelicha]

@Christopher84, Do you have your watchlist set to different timeframes? I am not sure if I just need one timeframe or make several. Thanks for sharing and educationist me.

 

[tjlizwelicha]

@Christopher84 thank you for the session yesterday and for taking the time to provide such concrete examples. I wrote down from some notes from memory today ( I tend to remember better when I write down stuff) and I was wondering if you (and anyone else who attended the session) would be so kind to give a quick glance and mention if anything is wrong (or if i missed any key points)

Notes about Consensus candles

1. When the trend is upwards and the resistance lines are also green , the trend is positive
2. when you see a red cloud , look at taking profits there
3. if your price spikes past the solid resistance line, you can often expect a rejection there unless the price action is really strong
4. Longer the resistance line, the hard it is to break past it and rejection is likely
5. when the dotted lines in the mtf indicator change from green to red, its time to perhaps look at exiting (Grey is a period of indecision)
6. when there is a squeeze alert and the trend is red (bearish), it can squeeze down hard too, squeezes might not always be positive
7. consensus levels are just an indicator of how many indicators are in agreement, Dont use that to define your trend (positive is always much better though) ,do look at the overall trend and if the trend lines are bearish or bullish or indecisive
8. when a cloud is floating over resistance lines, chances are a stock might reach there at some point but not currently
9. Always look at the angle of the B4 indicator, while a red cloud might indicate time to take profits , the angle of the indicator can indicate potential directions for trade, for example if its trending down exit the trade else if it trends up, keep an eye on the trend and the price action but ensure you can have a trade exit ready in case things go south
10. A trend can continue on a red cloud for while as long as the resistance lines are positive (green), the B4 MACDBB dotted line is above the BB top band and is green . Do note a trend can still continue if the MACDBB line is grey (period of indecision) due to strong momentum but be ready to exit if needed. Here is an example.
    
    
    

In this example, you could have also exited or reduced the position when the candle was above the cloud.



11. When both the interim resistance lines get close to each other (this is a period of consolidation) and the BB bands are contracted, a squeeze can happen but wait for the MACDBB line to break out (or break below the bands) before committing to a stock as shown below

Thank you again for such an incredible indicator and taking time to help answer some of the questions we had.

I would love to catch the next decor or meeting? I really want to master CC.

 

[tjlizwelicha]

@Christopher84 I posted a screen shot of my charts. Could you confirm that I am using the latest version. Thanks.

 

[tjlizwelicha]

@Christopher84 As long as I have the green dotted channel and the census indicator is green (Confirmation Level), would I stay in the trade? My answer would be "yes". Although I see several exit post indicators, the channel is still moving upward. I just want to assure that I am reading the charts correctly.

 

[Christopher84]

@Christopher84 I posted a screen shot of my charts. Could you confirm that I am using the latest version. Thanks.

It looks like the most recent version of the Confirmation Candles. I was using the Consensus Confirmation Candles during Friday’s live discussion. They have a bit less trend noise.

 

[tjlizwelicha]

It looks like the most recent version of the Confirmation Candles. I was using the Consensus Confirmation Candles during Friday’s live discussion. They have a bit less trend noise.

Thank you, So much. I will try that.

 

[Fluideng]

@Christopher84 Great indicator. Great job. Love the way price bounces off the NearTSupport in a green channel. Here is a scan for this.
close crosses above Keltner_Channel_CC()."NearTSupport" within 2 bars

 

[Fluideng]

Sorry use this code to scan NearTSupport.

#NearTSupport scan

def displace = 0;
def factorK = 2.0;
def lengthK = 20;
def price = close;
input averageType = AverageType.SIMPLE;
def trueRangeAverageType = AverageType.SIMPLE;
def BulgeLengthK = 150;
def SqueezeLengthK = 150;
def BulgeLengthK2 = 40;
def SqueezeLengthK2 = 40;
def BulgeLengthPrice = 75;
def SqueezeLengthPrice = 75;
def BulgeLengthPrice2 = 20;
def SqueezeLengthPrice2 = 20;

def shift = factorK * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), lengthK);
def averageK = MovingAverage(averageType, price, lengthK);
def AvgK = averageK[-displace];
def Upper_BandK = averageK[-displace] + shift[-displace];
def Lower_BandK = averageK[-displace] - shift[-displace];

def conditionK1 = price >= Upper_BandK;
def conditionK2 = (Upper_BandK[1] < Upper_BandK) and (Lower_BandK[1] < Lower_BandK);
def conditionK2L = (Upper_BandK[2] < Upper_BandK[1]) and (Lower_BandK[2] < Lower_BandK[1]);
def conditionK3L = (Upper_BandK[3] < Upper_BandK[2]) and (Lower_BandK[3] < Lower_BandK[2]);
def conditionK3 = (Upper_BandK[1] > Upper_BandK) and (Lower_BandK[1] > Lower_BandK);
def BandwidthK = (Upper_BandK - Lower_BandK) / AvgK * 100;
def condition_BWKUP = BandwidthK[1] < BandwidthK;
def condition_BWKDOWN = BandwidthK[1] > BandwidthK;
def BulgeK = Highest(BandwidthK, BulgeLengthK);
def SqueezeK = Lowest(BandwidthK, SqueezeLengthK);
def BulgeK2 = Highest(BandwidthK, BulgeLengthK2);
def SqueezeK2 = Lowest(BandwidthK, SqueezeLengthK2);
def NearTSupport = Lowest(price, SqueezeLengthPrice2);

plot scan = close crosses above NearTSupport within 2 bars;