Confirmation Candles Indicator for ThinkorSwim

I had family out of town this weekend and since I was trying to be productive, i decided to spend my time listening to the video here
(its a recording of Christopher explaining the Consensus candles) and here are my rough notes which mostly answered all the questions I had



Notes on the C3



  1. Green cloud , but red zone, still not going to break out, you want to ensure the green cloud and green zone
  2. Price action should be evaluated in terms of the intermediate trend- green, red or grey
  3. green channel - bullish trend
  4. red candle in green channel is actually bullish
  5. cloud oversold and flattening out (might see a spike soon), don’t get in here
  6. if you see red candles in a green channel, go for it, especially a s squeeze in play
  7. bullish practice action, right now in a support zone , is a bullish play
  8. green candles in a red channel, nearing resistance is a good place to go short
  9. red clouds act as markers to say , sell over the cloud or just look to see as you get close to it
  10. ideally sell over the red cloud every time,they typically are reversal zones
  11. the long cloud is a good indicator that the price will come to the base of the cloud (exception is if the support is above the base of the channel)
  12. squeeze dots indicate a squeeze condition,
  13. the red dots are indicators that its getting oversold (not completely oversold), do start looking at setting stop losses there or take some profits off
  14. it can go above a long cloud, it can go above the long cloud as long as the support line is higher than the end of the cloud- at some point, it can hammer back below the cloud
  15. when the price is a channel, indicates the price looking for direction and a squeeze is happening, wait for a breakout over the high (that said, it should be a solid breakout, not one which has a long wick, long wick means the price action is weak. B4 can help with this.
  16. the consensus numbers are not as relevant as you might think
  17. the consensus numbers are more binary
  18. increasing is momentum (more studies and increasing) is good
  19. red is overbought and green is oversold
  20. Think of the consensus candles as a binary
  21. breakout - agreement within the bands, the keltner bands were green
  22. breakdown - bands were in agreement that it was breaking down, red color
  23. in sideways move, bands are moving back and forth in terms in color , it oscillates between the high and low, so tagging the high and low
  24. red channel, green candle is a good opportunity too short, do check with the B4
  25. in a green cloud, once it descends below the green channel, look to buy since there will be sometimes some upward movement,
  26. when the price movement punches the top of the channel, and pushes up, that’s a positive movement, when the near term resistance lines are pushing it upwards, its a good sign that you want in.
  27. when the interim resistance lines are moving down, its a sign of a bearish signal
  28. when you dont see to a cloud to get out, see for gojis or wait for the candle changes down
  29. when you see the macdbb being red and the line being bent back its an option to short and the channel is red.
  30. high hanging candle in red channel is a sharper move down
  31. if the wicking is below the intermediate channel, multiple wicks, it can show that it has strong support and a potential reversal.
  32. if its indecisive , consider it as red channel and get it as close as possible to the red channel
  33. scalp with the trend, mean reversals are hard to to determine
  34. Always a set a target, where price is going, how long are you going to run it there
  35. green clouds provide support, but it can break down too
  36. Look to the left to see the where the resistance channel was, the are always good intermediate areas to take profits or look to scale out,

    Please note I still need to watch the last 30 minutes again as I was getting tired around the 1 hour mark (it was 11 PM PST) so the notes dont reflect the ichimoku clouds and the starc bands yet.

    Hope this helps someone.
 

tjlizwelicha

Active member
VIP
I had family out of town this weekend and since I was trying to be productive, i decided to spend my time listening to the video here
(its a recording of Christopher explaining the Consensus candles) and here are my rough notes which mostly answered all the questions I had



Notes on the C3



  1. Green cloud , but red zone, still not going to break out, you want to ensure the green cloud and green zone
  2. Price action should be evaluated in terms of the intermediate trend- green, red or grey
  3. green channel - bullish trend
  4. red candle in green channel is actually bullish
  5. cloud oversold and flattening out (might see a spike soon), don’t get in here
  6. if you see red candles in a green channel, go for it, especially a s squeeze in play
  7. bullish practice action, right now in a support zone , is a bullish play
  8. green candles in a red channel, nearing resistance is a good place to go short
  9. red clouds act as markers to say , sell over the cloud or just look to see as you get close to it
  10. ideally sell over the red cloud every time,they typically are reversal zones
  11. the long cloud is a good indicator that the price will come to the base of the cloud (exception is if the support is above the base of the channel)
  12. squeeze dots indicate a squeeze condition,
  13. the red dots are indicators that its getting oversold (not completely oversold), do start looking at setting stop losses there or take some profits off
  14. it can go above a long cloud, it can go above the long cloud as long as the support line is higher than the end of the cloud- at some point, it can hammer back below the cloud
  15. when the price is a channel, indicates the price looking for direction and a squeeze is happening, wait for a breakout over the high (that said, it should be a solid breakout, not one which has a long wick, long wick means the price action is weak. B4 can help with this.
  16. the consensus numbers are not as relevant as you might think
  17. the consensus numbers are more binary
  18. increasing is momentum (more studies and increasing) is good
  19. red is overbought and green is oversold
  20. Think of the consensus candles as a binary
  21. breakout - agreement within the bands, the keltner bands were green
  22. breakdown - bands were in agreement that it was breaking down, red color
  23. in sideways move, bands are moving back and forth in terms in color , it oscillates between the high and low, so tagging the high and low
  24. red channel, green candle is a good opportunity too short, do check with the B4
  25. in a green cloud, once it descends below the green channel, look to buy since there will be sometimes some upward movement,
  26. when the price movement punches the top of the channel, and pushes up, that’s a positive movement, when the near term resistance lines are pushing it upwards, its a good sign that you want in.
  27. when the interim resistance lines are moving down, its a sign of a bearish signal
  28. when you dont see to a cloud to get out, see for gojis or wait for the candle changes down
  29. when you see the macdbb being red and the line being bent back its an option to short and the channel is red.
  30. high hanging candle in red channel is a sharper move down
  31. if the wicking is below the intermediate channel, multiple wicks, it can show that it has strong support and a potential reversal.
  32. if its indecisive , consider it as red channel and get it as close as possible to the red channel
  33. scalp with the trend, mean reversals are hard to to determine
  34. Always a set a target, where price is going, how long are you going to run it there
  35. green clouds provide support, but it can break down too
  36. Look to the left to see the where the resistance channel was, the are always good intermediate areas to take profits or look to scale out,

    Please note I still need to watch the last 30 minutes again as I was getting tired around the 1 hour mark (it was 11 PM PST) so the notes dont reflect the ichimoku clouds and the starc bands yet.

    Hope this helps someone.
Thank you so much for taking the time to share your notes.
 

tjlizwelicha

Active member
VIP
I had family out of town this weekend and since I was trying to be productive, i decided to spend my time listening to the video here
(its a recording of Christopher explaining the Consensus candles) and here are my rough notes which mostly answered all the questions I had



Notes on the C3



  1. Green cloud , but red zone, still not going to break out, you want to ensure the green cloud and green zone
  2. Price action should be evaluated in terms of the intermediate trend- green, red or grey
  3. green channel - bullish trend
  4. red candle in green channel is actually bullish
  5. cloud oversold and flattening out (might see a spike soon), don’t get in here
  6. if you see red candles in a green channel, go for it, especially a s squeeze in play
  7. bullish practice action, right now in a support zone , is a bullish play
  8. green candles in a red channel, nearing resistance is a good place to go short
  9. red clouds act as markers to say , sell over the cloud or just look to see as you get close to it
  10. ideally sell over the red cloud every time,they typically are reversal zones
  11. the long cloud is a good indicator that the price will come to the base of the cloud (exception is if the support is above the base of the channel)
  12. squeeze dots indicate a squeeze condition,
  13. the red dots are indicators that its getting oversold (not completely oversold), do start looking at setting stop losses there or take some profits off
  14. it can go above a long cloud, it can go above the long cloud as long as the support line is higher than the end of the cloud- at some point, it can hammer back below the cloud
  15. when the price is a channel, indicates the price looking for direction and a squeeze is happening, wait for a breakout over the high (that said, it should be a solid breakout, not one which has a long wick, long wick means the price action is weak. B4 can help with this.
  16. the consensus numbers are not as relevant as you might think
  17. the consensus numbers are more binary
  18. increasing is momentum (more studies and increasing) is good
  19. red is overbought and green is oversold
  20. Think of the consensus candles as a binary
  21. breakout - agreement within the bands, the keltner bands were green
  22. breakdown - bands were in agreement that it was breaking down, red color
  23. in sideways move, bands are moving back and forth in terms in color , it oscillates between the high and low, so tagging the high and low
  24. red channel, green candle is a good opportunity too short, do check with the B4
  25. in a green cloud, once it descends below the green channel, look to buy since there will be sometimes some upward movement,
  26. when the price movement punches the top of the channel, and pushes up, that’s a positive movement, when the near term resistance lines are pushing it upwards, its a good sign that you want in.
  27. when the interim resistance lines are moving down, its a sign of a bearish signal
  28. when you dont see to a cloud to get out, see for gojis or wait for the candle changes down
  29. when you see the macdbb being red and the line being bent back its an option to short and the channel is red.
  30. high hanging candle in red channel is a sharper move down
  31. if the wicking is below the intermediate channel, multiple wicks, it can show that it has strong support and a potential reversal.
  32. if its indecisive , consider it as red channel and get it as close as possible to the red channel
  33. scalp with the trend, mean reversals are hard to to determine
  34. Always a set a target, where price is going, how long are you going to run it there
  35. green clouds provide support, but it can break down too
  36. Look to the left to see the where the resistance channel was, the are always good intermediate areas to take profits or look to scale out,

    Please note I still need to watch the last 30 minutes again as I was getting tired around the 1 hour mark (it was 11 PM PST) so the notes dont reflect the ichimoku clouds and the starc bands yet.

    Hope this helps someone.
I want to make sure I have been looking at what makes up the channel. I’ve been using the neart which eventually merges into the interm. For example, does the channels consist of a Intermsupport (solid) and a Intermresistance (solid)? Or a Neartsupport (solid) and a Intermresistance (dotted)? Or a Neartsupport (dotted) and a neartresistance (dotted)?
 

dborger23

New member
VIP
I tried to build a scanner for the Confirmation Candles indicator in the ThnkScript editor as

ConfirmationCandlesLower()."Agreement_Level" crosses above 100

but received the message that this was too complex. Does anyone have an alternative?
 
I tried to build a scanner for the Confirmation Candles indicator in the ThnkScript editor as

ConfirmationCandlesLower()."Agreement_Level" crosses above 100

but received the message that this was too complex. Does anyone have an alternative?
I think the highest agreement level is 16..not sure why you chose 100..
 
I want to make sure I have been looking at what makes up the channel. I’ve been using the neart which eventually merges into the interm. For example, does the channels consist of a Intermsupport (solid) and a Intermresistance (solid)? Or a Neartsupport (solid) and a Intermresistance (dotted)? Or a Neartsupport (dotted) and a neartresistance (dotted)?
The dotted lines are near term support and resistances, the solid lines are more long term resistance and supports.
 
Thanks. Got sloppy and accidentally used the default value. Changed it to 13 with the same result.
With all due respect, I recommend watching the video i linked in this post https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-72882 since it will tell you the number doesnt matter, what you should be looking for is

1. Is the channel green or red (if you are shorting)
2. Are the indicators green or red (red is overbought)
3. Is the consensus increasing or decreasing.
 

dborger23

New member
VIP
With all due respect, I recommend watching the video i linked in this post https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-72882 since it will tell you the number doesnt matter, what you should be looking for is

1. Is the channel green or red (if you are shorting)
2. Are the indicators green or red (red is overbought)
3. Is the consensus increasing or decreasing.
Thanks for the recommendation. I'm about a half hour into it and am learning a lot. Your program notes are helping, too. One additional question, if I may: I copied and pasted Chris' code from April 16, labeled version 10 and everything looks right (compared to the video) except I don't see any overbought/oversold clouds. I'm working with daily stock charts. Any ideas? Am I using and outdated version?
 
Thanks for the recommendation. I'm about a half hour into it and am learning a lot. Your program notes are helping, too. One additional question, if I may: I copied and pasted Chris' code from April 16, labeled version 10 and everything looks right (compared to the video) except I don't see any overbought/oversold clouds. I'm working with daily stock charts. Any ideas? Am I using and outdated version?
I think the consensus candles is what everyone is using now, I know at some point in this thread we all migrated to that. I am on the C3 V6 version.
 

zoyd

New member
Hi @Thoward604,
That mean that there is an that price is in an overbought condition. It will turn green when price is in an oversold condition
Hi @Christopher84

Thanks for the great work you've done with this, really impressive. I am using
# (Consensus Confirmation Candles) C3 v5 FOREX & SPX Compatible

along with the watchlist sorting for confirmation level and OB/OS status from the 1st post. I noticed that the watchlist confirmation values do not match the C3 chart display value in the title, is that expected? There are also some NAN values in the watchlist for the confirmation value and the OB/OS value.
 

Christopher84

Well-known member
VIP
Hi @Christopher84

Thanks for the great work you've done with this, really impressive. I am using
# (Consensus Confirmation Candles) C3 v5 FOREX & SPX Compatible

along with the watchlist sorting for confirmation level and OB/OS status from the 1st post. I noticed that the watchlist confirmation values do not match the C3 chart display value in the title, is that expected? There are also some NAN values in the watchlist for the confirmation value and the OB/OS value.
Hi @zoyd,
C3 utilizes the Consensus Level which is a bit different than the Confirmation Level. Consensus Level can be a negative number while the Confirmation Level will never be below 0. I opted to use the Confirmation Level for the watchlist due to the fact that the code for the Consensus Level is too complex for ToS to run in a watchlist. As far as the NAN values in the watchlist OB/OS, it's likely due to it not updating. I have seen it happen a few times if I have more than one watchlist open at a time. It should update for you. Just make sure that you only have one watchlist open. Hope this helps!
 

rfb

Member
Hi @zoyd,
C3 utilizes the Consensus Level which is a bit different than the Confirmation Level. Consensus Level can be a negative number while the Confirmation Level will never be below 0. I opted to use the Confirmation Level for the watchlist due to the fact that the code for the Consensus Level is too complex for ToS to run in a watchlist. As far as the NAN values in the watchlist OB/OS, it's likely due to it not updating. I have seen it happen a few times if I have more than one watchlist open at a time. It should update for you. Just make sure that you only have one watchlist open. Hope this helps!
Hi @Christopher84 , not sure if you saw post 770, but was wondering if there's a way the Super OB/OS can work with SPX? Unless I'm missing something, haven't been able to utilize it with SPX. Thank you.
 

Christopher84

Well-known member
VIP
Hi @Christopher84 , not sure if you saw post 770, but was wondering if there's a way the Super OB/OS can work with SPX? Unless I'm missing something, haven't been able to utilize it with SPX. Thank you.
Hi @rfb!
The Super OB/OS indication is built into the labels for C3 SPX. If the Consensus Level label at the top goes green it is OS. If it turns red, it is OB. Incase you wanted the stand alone lower study, I just posted and SPX version on pg.1 of this thread. I included an option for the study to paint the candles as well, however it's default setting is set to "no" to prevent it conflicting with the C3 painting strategy. It does make for an interesting painting strategy as well though. Happy trading rfb!
 
Last edited:

Christopher84

Well-known member
VIP
@Christopher84, still loving your indicators to help time fib entries. Thank you again for sharing your talents with us! Here's a screenshot about to be entered into my journal. On fed-speak days, I stick to micros to reduce risk. But even with these little contracts, your indicators interpret the price action very well.

Nice example @Trader Raider!!! Thank you for sharing your experience and insights!
 

rfb

Member
Hi @rfb!
The Super OB/OS indication is built into the labels for C3 SPX. If the Consensus Level label at the top goes green it is OS. If it turns red, it is OB. Incase you wanted the stand alone lower study, I just posted and SPX version on pg.1 of this thread. I included an option for the study to paint the candles as well, however it's default setting is set to "no" to prevent it conflicting with the C3 painting strategy. It does make for an interesting painting strategy as well though. Happy trading rfb!
Outstanding! Thank you so much for the update!! Didn't realize it was built into the labels. Very nice! I'll load the separate study just for grins and thank you again for the SPX version! All the best!
 

tjlizwelicha

Active member
VIP
@Christopher84, still loving your indicators to help time fib entries. Thank you again for sharing your talents with us! Here's a screenshot about to be entered into my journal. On fed-speak days, I stick to micros to reduce risk. But even with these little contracts, your indicators interpret the price action very well.

@Trader Raider thanks for sharing the example. Do you mind sharing your target script?
 

rfb

Member
@Christopher84, still loving your indicators to help time fib entries. Thank you again for sharing your talents with us! Here's a screenshot about to be entered into my journal. On fed-speak days, I stick to micros to reduce risk. But even with these little contracts, your indicators interpret the price action very well.

Nice chart Trader Raider! Quick question: How did you determine your targets based on that chart? Thanks!
 

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