Confirmation Candles Indicator For ThinkorSwim

[Christopher84]

@Christopher84 Could you explain what the yellow dots mean?

I cannot figure out how to import your watchlist that goes with the study, could you maybe share the link?

Thanks!

Hi Maximillian!
The yellow dots indicate a price squeeze condition. I prefer not to use a share link. You should be able to add it as custom code on your watchlist though. Click the gear icon to the right of your watchlist columns then select customize. Click the dropdown menu on the left and select custom quotes. Click on the icon that looks like a scroll and you should be able to add the custom WL code there.

 

[horserider]

Since this is a high / low price channel and a number of people seem confused on all it's workings I adapted a simple high/low price channel( original script I believe was by thinkscripter) study that closely matches the smaller Conformation Candles channel. If price is at the top of the channel and breaks below from the red dots it signals a possible short. If price is at the bottom of the channel and breaks above the green dots it signals a possible long. If you also wish to have the larger channel add the study a second time and use a 70 length.
I hope this helps anyone not confident in their understanding of channels (price, Donchian,Keltner, etc.) I will be happy try answering any questions.

input length=17;

def o=open;
def c=close;
def h=high;
def l=low;

def hh=h>h[1];
def ll=l<l[1];

def BarLngth=h-l;
def AvgBarLngth=average(BarLngth,20);
def Threshhold=AvgBarLngth+StDev(BarLngth,20);

def HiestHi=highest(close[3],length);
def LwestLw=lowest(close[3],length);

rec LastHi=if HiestHi>HiestHi[1] then HiestHi[1] else LastHi[1];
rec LastLw=if LwestLw<LwestLw[1] then LwestLw[1] else LastLw[1];

def LwOvrSupport=l>LwestLw;
def HiUndrSupport=h<HiestHi;

def BreaksSpprt=LwOvrSupport[3] and LwOvrSupport[2] and LwOvrSupport[1] and l<=LwestLw;
def BreaksRzist= HiUndrSupport[1]and HiUndrSupport[2] and HiUndrSupport[3] and h>=HiestHi;

plot FirstSupportBreak=if BreaksSpprt then l else double.nan;
FirstSupportBreak.SetPaintingStrategy(PaintingStrategy.boolean_arrow_up);
FirstSupportBreak.SetDefaultColor(color.blue);

plot FirstResistanceBreak=if BreaksRzist then h else double.nan;
FirstResistanceBreak.SetPaintingStrategy(PaintingStrategy.boolean_arrow_down);
FirstResistanceBreak.SetDefaultColor(color.magenta);

plot HighestHigh=HiestHi;
HighestHigh.SetLineWeight(2);
HighestHigh.AssignValueColor(if (HighestHigh > HighestHigh[1]) then Color.LIGHT_GREEN else  Color.LIGHT_RED);

plot LowestLow=LwestLw;
LowestLow.SetLineWeight(2);
LowestLow.SetDefaultColor(color.light_green);
LowestLow.AssignValueColor(if (LowestLow > LowestLow[1]) then Color.LIGHT_GREEN else  Color.LIGHT_RED);

plot LastHigh=LastHi;
LastHigh.SetPaintingStrategy(PaintingStrategy.Horizontal);

plot LastLow=LastLw;
LastLow.SetPaintingStrategy(PaintingStrategy.Horizontal);

And no, I do not wish to have a imgur account. If someone wants to post an image please feel free.

 

[Trader Raider]

And no, I do not wish to have a imgur account. If someone wants to post an image please feel free.

FWIW, I don't have an imgur account either. An account isn't necessary to upload images.

Here is @Christopher84's indicator on the left and @horserider's indicator on the right with regular candle colors. (I changed the size and color of the arrows.)

https://imgur.com/a/pje5tFu

Here's @Christopher84's indicator on the left and @horserider's on the right with no arrows and Christopher's consensus candle colors.

https://imgur.com/a/OiaIUPq

Finally, here's Christopher's on the left and horserider's on the right with Christopher's colors and horserider's arrows.

https://imgur.com/a/XtxZGq5

Oops, one more. Here's the same as above except Christopher's OB OS arrows are also plotted.

https://imgur.com/a/FzkeGVM

 

[WhizOrg]

@Christopher84

Good day, may I know do the scripts apply to FX? I had tried to add it to the studies and strategies it does not show on the chart.

 

[Christopher84]

@Christopher84

Good day, may I know do the scripts apply to FX? I had tried to add it to the studies and strategies it does not show on the chart.

I created a modified version late yesterday for FOREX and SPX. I will post shortly.

 

[Christopher84]

Since this is a high / low price channel and a number of people seem confused on all it's workings I adapted a simple high/low price channel( original script I believe was by thinkscripter) study that closely matches the smaller Conformation Candles channel. If price is at the top of the channel and breaks below from the red dots it signals a possible short. If price is at the bottom of the channel and breaks above the green dots it signals a possible long. If you also wish to have the larger channel add the study a second time and use a 70 length.
I hope this helps anyone not confident in their understanding of channels (price, Donchian,Keltner, etc.) I will be happy try answering any questions.

input length=17;

def o=open;
def c=close;
def h=high;
def l=low;

def hh=h>h[1];
def ll=l<l[1];

def BarLngth=h-l;
def AvgBarLngth=average(BarLngth,20);
def Threshhold=AvgBarLngth+StDev(BarLngth,20);

def HiestHi=highest(close[3],length);
def LwestLw=lowest(close[3],length);

rec LastHi=if HiestHi>HiestHi[1] then HiestHi[1] else LastHi[1];
rec LastLw=if LwestLw<LwestLw[1] then LwestLw[1] else LastLw[1];

def LwOvrSupport=l>LwestLw;
def HiUndrSupport=h<HiestHi;

def BreaksSpprt=LwOvrSupport[3] and LwOvrSupport[2] and LwOvrSupport[1] and l<=LwestLw;
def BreaksRzist= HiUndrSupport[1]and HiUndrSupport[2] and HiUndrSupport[3] and h>=HiestHi;

plot FirstSupportBreak=if BreaksSpprt then l else double.nan;
FirstSupportBreak.SetPaintingStrategy(PaintingStrategy.boolean_arrow_up);
FirstSupportBreak.SetDefaultColor(color.blue);

plot FirstResistanceBreak=if BreaksRzist then h else double.nan;
FirstResistanceBreak.SetPaintingStrategy(PaintingStrategy.boolean_arrow_down);
FirstResistanceBreak.SetDefaultColor(color.magenta);

plot HighestHigh=HiestHi;
HighestHigh.SetLineWeight(2);
HighestHigh.AssignValueColor(if (HighestHigh > HighestHigh[1]) then Color.LIGHT_GREEN else  Color.LIGHT_RED);

plot LowestLow=LwestLw;
LowestLow.SetLineWeight(2);
LowestLow.SetDefaultColor(color.light_green);
LowestLow.AssignValueColor(if (LowestLow > LowestLow[1]) then Color.LIGHT_GREEN else  Color.LIGHT_RED);

plot LastHigh=LastHi;
LastHigh.SetPaintingStrategy(PaintingStrategy.Horizontal);

plot LastLow=LastLw;
LastLow.SetPaintingStrategy(PaintingStrategy.Horizontal);

And no, I do not wish to have a imgur account. If someone wants to post an image please feel free.

Hi Horserider,
Thank you for providing the script. However, it appears that your channels aren’t providing the same information regarding the trend environment which is crucial to the trading strategy. Anyone that is confused regarding the channels interpretation, please join the live discussion Friday. I will give an in-depth explanation. Or feel free to message me. I am always here to help!

 

[WhizOrg]

I created a modified version late yesterday for FOREX and SPX. I will post shortly.

Thank you very much.

 

[Christopher84]

Thank you very much.

Hi WhizOrg!
Just posted the modified version of the CC Candles on pg.1 under the code for the CC Candles. Hope it helps! Happy trading!

 

[WhizOrg]

Hi WhizOrg!
Just posted the modified version of the CC Candles on pg.1 under the code for the CC Candles. Hope it helps! Happy trading!

Good day Christopher, thank you very much. Wish to see more on others to FX.

 

[Christopher84]

Hi Everyone!
I would like to encourage you all to share some screenshots showing successful trades that you were able to execute utilizing CC Candles. The feedback and examples are so helpful for everyone! Thanks in advance to those that participate. You guys are awesome!

 

[Trader Raider]

Hi Everyone!
I would like to encourage you all to share some screenshots showing successful trades that you were able to execute utilizing CC Candles.

Christopher, first, thank you for the revision that works on forex. Just updated some of my grids and they look great.

Here's a trade I took yesterday when Eastman Kodak showed up on your stock scan. I kept this screenshot for my journal to show where I chickened out and why (resistance and MACD_BB going flat). Didn't feel bad about leaving money on the table because I never blew up an account taking profits when they materialize.

https://imgur.com/a/Yqbk5By

Am flat today.

 

[Christopher84]

Christopher, first, thank you for the revision that works on forex. Just updated some of my grids and they look great.

Here's a trade I took yesterday when Eastman Kodak showed up on your stock scan. I kept this screenshot for my journal to show where I chickened out and why (resistance and MACD_BB going flat). Didn't feel bad about leaving money on the table because I never blew up an account taking profits when they materialize.

https://imgur.com/a/Yqbk5By

Am flat today.

Great example trade! You are 100% right, it never hurts to take a profit.

 

[horserider]

However, it appears that your channels aren’t providing the same information regarding the trend environment which is crucial to the trading strategy.

Please can you explain how the channels differ in regards to the trend environment.

 

[Christopher84]

Please can you explain how the channels differ in regards to the trend environment.

Hi horserider!
Yes I would be happy to explain some of the key differences.
1. The colors in your channel are alternating green and red while still in a bullish trend environment (green channel on the C3). This creates confusion in identifying the overall trend environment and doesn't fit the strategy.
2. You say "If price is at the top of the channel and breaks below from the red dots it signals a possible short", this happens multiple times within a bullish trend (green channel on the C3) insinuating the opening of a short position in a bullish trend environment which is a risky position to take. My strategy doesn't short in a bullish channel.

While both sets of channels are high/low price channels set to a 20 period length, that's where the similarities end. There's nothing wrong with your channels, but they indicate a different trend environment and don't fit the trading strategy of C3. As you noted in your entail post, you felt that people were confused with how to interpret the C3 channels. Introducing an indicator that is contrary to the trading strategy just muddies the water and potentially piles on to the confusion. I appreciate your input and your channels are very interesting. They just don't align with the C3 strategy. Thanks again horserider! Happy trading!

 

[KPasciak]

I have some very basic questions as I am new to this.
When you use these confirmation candles to day trade, do you have to wait a certain amount of candles into the day (at least) before you can trade?
Are you leaving on the overnight data or ignoring it?

 

[Trader Raider]

@Christopher84, while I was waiting for price to take out my targets, I was watching the difference between the consensus labels on the 5 and 15 min charts. It was fascinating to watch one chart trigger an overbought with a lower consensus number while the other had higher consensus without triggering overbought. Still appreciating that you shared these indicators with us! Thank you!

https://imgur.com/a/gLMC1U7

@KPasciak, I use the consensus candles and the MTF cloud for day trading. The trade I took this morning was based on the overnight low to high. Price hit both targets (fib levels). Some traders, like me, use 24 hour price action. Others prefer to look at price action that takes place during regular market hours only. It all depends on your strategy. Christopher's indicators are quite versatile. The best way to get familiar with them is to pick an instrument, plot the indicators, and just watch how they react to price movement across various timeframes.

Best wishes and happy trading!

 

[Christopher84]

I have some very basic questions as I am new to this.
When you use these confirmation candles to day trade, do you have to wait a certain amount of candles into the day (at least) before you can trade?
Are you leaving on the overnight data or ignoring it?

I leave on the overnight data. You are really just watching the price action for an entry point. There’s not a set number of candles to wait.

 

[Christopher84]

@Christopher84, while I was waiting for price to take out my targets, I was watching the difference between the consensus labels on the 5 and 15 min charts. It was fascinating to watch one chart trigger an overbought with a lower consensus number while the other had higher consensus without triggering overbought. Still appreciating that you shared these indicators with us! Thank you!

https://imgur.com/a/gLMC1U7

@KPasciak, I use the consensus candles and the MTF cloud for day trading. The trade I took this morning was based on the overnight low to high. Price hit both targets (fib levels). Some traders, like me, use 24 hour price action. Others prefer to look at price action that takes place during regular market hours only. It all depends on your strategy. Christopher's indicators are quite versatile. The best way to get familiar with them is to pick an instrument, plot the indicators, and just watch how they react to price movement across various timeframes.

Best wishes and happy trading!

Thank you for putting together such wonderful examples of how you are utilizing these indicators! It’s so beneficial! Greatly appreciate your efforts Traider Raider!

 

[Christopher84]

Live discussion today on CC Candles after the bell!

 

[President_Evil]

Great discussion, thanks Chris. Would you mind linking most recent versions of Starc extensions, B4 lower and MA cloud you're using?