Confirmation Candles Indicator For ThinkorSwim

[Trader Raider]

this is hands down the single best study/combo of studies I have found.

Agree 100%. It's amazing how much information the indicators provide while keeping the chart clean. When I combine confirmation candles, MTF cloud, MACD_BB and fibs, I get a setup that meets my criteria nearly every day. I'm so grateful that @Christopher84 shared his work with all of us. It would be nice if there were a way to tip coders who share their work. What Christopher has posted on this thread has been more useful to me than any of the other indicators that I wasted thousands of dollars on.

@Gangadhar, don't mean to be rude, but have you read this thread? I realize there are a lot of pages, but if you take the time to read them, you'll find advice from Christopher, trade examples, explanations, etc.

 

[nitrous]

results look pretty good. what parameters ar you using for b/s/? these?

def Buy = UP_OS;
def Sell = DOWN_OB;

i'll have to try to duplicate the strategy myself and see what i think.

how do you get all those stats? that's a motherlode!

keep up the great work. i've taken your code and done what you see in the pic below. in the lower most study window, i've done away with everything but the buy suggestion and added vertical lines and price for when it triggers. the white dashed lines. meanwhile, in the price window, i'm using it as a filter for my favorite mean-reversion indicator, which shows up as purple arrows while yours are the white ones.

if i took a purple trade and didn't get a white confirmation within 3 bars, it's time to get out. better bet would be to wait until both fire but by then a lot of what makes mean reversion work is done. see how that first purple arrow isn't confirmed? get out! see how the second one is, in the very next bar? yay!

anyway, thanks for this. i think it's going to be muy useful.

by the way, the vertical lines in the upper chart reflect my indicator firing, along w/ the price at which it did so. the diff between buying right then and waiting a day is pretty substantial, sometimes for better, others for worse.

Mind sharing your setup? Looks good.

 

[sparhawk]

I am finding this indicator very useful for my momentum trades. However, it is very important that I be able to see the actual color of the candles so I can read the price action.

Is it possible to color the confirmation factor dotted line in the lower study red or green? This would simply mean taking the same conditions that color the candles red or green, and instead coloring the confirmation factor dotted line red or green. I know it can be done, but my coding ability is pretty limited.

Adding this to the lower study would allow us to see the actual candle colors (extremely important if you want to ready price action) while also seeing the overall picture.

Happy to explain further how I would apply this in live trading if anyone can code it!

 

[Christopher84]

I am finding this indicator very useful for my momentum trades. However, it is very important that I be able to see the actual color of the candles so I can read the price action.

Is it possible to color the confirmation factor dotted line in the lower study red or green? This would simply mean taking the same conditions that color the candles red or green, and instead coloring the confirmation factor dotted line red or green. I know it can be done, but my coding ability is pretty limited.

Adding this to the lower study would allow us to see the actual candle colors (extremely important if you want to ready price action) while also seeing the overall picture.

Happy to explain further how I would apply this in live trading if anyone can code it!

Hi sparhawk,
You can still see the price action by looking at whether a candle is filling up or down. I make my candles fill up and empty out when moving down making the price action easy to see. Part of the purpose of using candle painting strategies is to mitigate the trend noise produced by alternating red/green candles that are seen on standard chart setups. You can use one of my lower studies and it won't change your candle color on your chart. Hope that helps!

 

[Christopher84]

So I have been using the indicator for a while and I am trying to understand is there a way to determine when the support level will break or the resistance level will break. I often stop out when the price hits the resistance level but then the price just breaks it and makes a new higher resistance level. Is there any way to deduce when the resistance will hold or break.

Hi alexsmith3546,
Price pushing the upper channel up is a very bullish signal. Unless you are trading an asset that tends to have channeling price action, I wouldn't consider price reaching the intermediate resistance level as an exit signal. There is no way of calling tops (or bottoms) with 100% certainty. However, the clouds and OB/OS label can certainly give you insight on when to look at taking profits.

 

[Christopher84]

@Christopher84 been using this on all my charts for the past month and can easily say this is hands down the single best study/combo of studies I have found. I have had dozens of friends from other groups reach out and ask where to find it. Appreciate your hard work, just wanted to reach out and say thank you.

Hi Lieutenant Scalps!
Thank you so much for the kind words! I am really happy that my indicators are being put to good use. Happy trading!

 

[Christopher84]

Confirmation Candles Indicator for ThinkorSwim --@Christopher84 --> i want to know how this indicator works.​

Hi Gangadhar!
There's a tremendous amount of information on pg.1 of this thread regarding how to use/interpret my indicators (including a video). If there is something more specific you would like me to address just let me know. I am happy to help.

 

[Gangadhar]

i need detail of this two custom column & Confirmation Chart & Lower Chart-- where should we look for buy & sell opportunity.

 

[Christopher84]

i need detail of this two custom column & Confirmation Chart & Lower Chart-- where should we look for buy & sell opportunity.

That really just depends on your strategy. The columns are meant to correlate with the C3 chart (as close as I could get them without the codes being too complex). The YouTube video discusses some of the strategies that could be utilized with C3, and may be a good starting point for you. From there, the watchlist columns will probably make much more since.

 

[rfb]

Hi @Christopher84 . Been looking at your MTF Cloud Upper study and was wondering if you have any recommended settings for agperiod1 and agperiod2 using 3m, 5m and 15m time frames? I've played around with changing some of the numbers and the obvious difference are the size and length of the clouds produced. No rush on a reply. Thank you!

 

[alexsmith3546]

Hi alexsmith3546,
Price pushing the upper channel up is a very bullish signal. Unless you are trading an asset that tends to have channeling price action, I wouldn't consider price reaching the intermediate resistance level as an exit signal. There is no way of calling tops (or bottoms) with 100% certainty. However, the clouds and OB/OS label can certainly give you insight on when to look at taking profits.

Thanks as always @Christopher84 . Really appreciate your willingness to take the time to answer.

When you mean clouds, i assume you are referring to the red or green clouds and not the ichimoko clouds.Thank you for your help.

 

[Christopher84]

Thanks as always @Christopher84 . Really appreciate your willingness to take the time to answer.

When you mean clouds, i assume you are referring to the red or green clouds and not the ichimoko clouds.Thank you for your help.

No problem @alexsmith3546! Sounds like you’ve got it right. The red clouds represent an overbought condition, and the green clouds represent an oversold condition.

 

[Christopher84]

Hi @Christopher84 . Been looking at your MTF Cloud Upper study and was wondering if you have any recommended settings for agperiod1 and agperiod2 using 3m, 5m and 15m time frames? I've played around with changing some of the numbers and the obvious difference are the size and length of the clouds produced. No rush on a reply. Thank you!

Hi @rfb!
I make the first agperiod as close to the time frame of my chart as possible. Agperiod2 I would consider using 30 minutes as a starting point.

 

[Trader Raider]

@rfb, don't forget there is an MTF lower cloud indicator. It's very convenient in helping to decide which agg periods you want for various timeframes. Here's an example. The upper cloud is 5-10 min, and the two lower clouds are 15-30 min and 1 hr-4 hr. Depending on your strategy, one aggregation period may be more helpful than another.

https://imgur.com/a/EjRTit2

When I was trying to decide which agg period I wanted for each timeframe in my analysis grid, I plotted several lower clouds. After a few days, it was apparent which aggregation period was most helpful for my style of trading. The ability to compare multiple agg periods simultaneously with the lower MTF cloud indicator really sped up the process. Christopher thought of everything with this set of indicators!

Best wishes and happy trading!

 

[bpVoodoo]

Hi, @Christopher84 Is there a script for the MACD Histogram in the video? I would like to use it.

 

[Christopher84]

Hi, @Christopher84 Is there a script for the MACD Histogram in the video? I would like to use it.

Hi @bpVoodoo!
Can you show a screenshot of what you are referring to?

 

[bpVoodoo]

Hi @bpVoodoo!
Can you show a screenshot of what you are referring to?

Hi,

I can't load a screenshot on here for some reason.

What I am referring to is the lower study. I see MACD, MACD Historgram, and a few other lines. Do you have a script for it or direct me to where I can find it?

 

[rfb]

@rfb, don't forget there is an MTF lower cloud indicator. It's very convenient in helping to decide which agg periods you want for various timeframes. Here's an example. The upper cloud is 5-10 min, and the two lower clouds are 15-30 min and 1 hr-4 hr. Depending on your strategy, one aggregation period may be more helpful than another.

https://imgur.com/a/EjRTit2

When I was trying to decide which agg period I wanted for each timeframe in my analysis grid, I plotted several lower clouds. After a few days, it was apparent which aggregation period was most helpful for my style of trading. The ability to compare multiple agg periods simultaneously with the lower MTF cloud indicator really sped up the process. Christopher thought of everything with this set of indicators!

Best wishes and happy trading!

@Trader Raider thanks for the suggestions! I'll give it a shot this week!

 

[Christopher84]

Hi,

I can't load a screenshot on here for some reason.

What I am referring to is the lower study. I see MACD, MACD Historgram, and a few other lines. Do you have a script for it or direct me to where I can find it?

I think you are referring to the B4. If so, here’s a link https://usethinkscript.com/threads/balanced-bb-breakout.5708/. It’s an excellent trading tool.

 

[bpVoodoo]

I think the best idea is to give you the components of the scan so you are able to setup instead of relying on the share link. So here are the codes I am using to do the scan with images to show my settings.

# MTF Moving Average Cloud Scan Day (For Scan Only)

declare lower;
input length = 10;
input agperiod1 = {"1 min", "2 min", "5 min", "10 min", "15 min", "30 min", "1 hour", "4 hours", default "Day", "Week"};
#input agperiod2 = {"1 min", "2 min", "5 min", "10 min", "15 min", "30 min", "1 hour", "4 hours", "Day", default "Week"};

plot avg1 = ExpAverage(close(period = agperiod1), length);
def height = avg1 - avg1[length];
avg1.SetStyle(Curve.SHORT_DASH);
avg1.SetLineWeight(1);
#avg.SetDefaultColor(Color.Gray);
plot UP1 = avg1[1] < avg1;
def DOWN1 = avg1[1] > avg1;
Avg1.AssignValueColor(if UP1 then Color.LIGHT_GREEN else if DOWN1 then Color.RED else Color.YELLOW);

#plot avg2 = ExpAverage(close(period = agperiod2), length);
#def height2 = avg2 - avg2[length];
#avg2.SetStyle(Curve.SHORT_DASH);
#avg2.SetLineWeight(1);
#avg.SetDefaultColor(Color.Gray);

#def UP2 = avg2[1] < avg2;
#def DOWN2 = avg2[1] > avg2;
#Avg2.AssignValueColor(if UP2 then Color.LIGHT_GREEN else if DOWN2 then Color.RED else Color.YELLOW);

plot price1 = close;
def UP3 = price1[1] < price1;
def DOWN3 = price1[1] > price1;
price1.AssignValueColor(if UP3 then Color.LIGHT_GREEN else if DOWN3 then Color.RED else Color.YELLOW);


#AddCloud(avg2, avg1, Color.LIGHT_RED, Color.CURRENT);
#AddCloud(avg1, avg2, Color.LIGHT_GREEN, Color.CURRENT);

Here's the MA Week scan component.

# MTF Moving Average Cloud (For Week Scan Only)

declare lower;
input length = 10;
#input agperiod1 = {"1 min", "2 min", "5 min", "10 min", "15 min", "30 min", "1 hour", "4 hours", default "Day", "Week"};
input agperiod2 = {"1 min", "2 min", "5 min", "10 min", "15 min", "30 min", "1 hour", "4 hours", "Day", default "Week"};

#plot avg1 = ExpAverage(close(period = agperiod1), length);
#def height = avg1 - avg1[length];
#avg1.SetStyle(Curve.SHORT_DASH);
#avg1.SetLineWeight(1);
#avg.SetDefaultColor(Color.Gray);
#def UP1 = avg1[1] < avg1;
#def DOWN1 = avg1[1] > avg1;
#Avg1.AssignValueColor(if UP1 then Color.LIGHT_GREEN else if DOWN1 then Color.RED else Color.YELLOW);

plot avg2 = ExpAverage(close(period = agperiod2), length);
def height2 = avg2 - avg2[length];
avg2.SetStyle(Curve.SHORT_DASH);
avg2.SetLineWeight(1);
avg2.SetDefaultColor(Color.Gray);

plot UP2 = avg2[1] < avg2;
def DOWN2 = avg2[1] > avg2;
Avg2.AssignValueColor(if UP2 then Color.LIGHT_GREEN else if DOWN2 then Color.RED else Color.YELLOW);

plot price1 = close;
def UP3 = price1[1] < price1;
def DOWN3 = price1[1] > price1;
price1.AssignValueColor(if UP3 then Color.LIGHT_GREEN else if DOWN3 then Color.RED else Color.YELLOW);


#AddCloud(avg2, avg1, Color.LIGHT_RED, Color.CURRENT);
#AddCloud(avg1, avg2, Color.LIGHT_GREEN, Color.CURRENT);

Here are the results of my scan this morning.

Let me know if you have any trouble setting it up. I had to break the code up a bit due to it being an MTF indicator.

Hi, Christopher, is there a reason why MovAvgExponential length is 45? Also, how do I get the scan to scan if the price is near or at the bottom line.