Confirmation Candles Indicator For ThinkorSwim

[Christopher84]

Thought it would bounce here again like it did in the morning at this level.. got stopped out almost immediately! All my settings are default.. I think I need to zoom out a little bit and use the 10 minute. This was on NVDA at 10:45.

https://imgur.com/a/QnWKwK6

Hi @lolconlol!
Thank you for the screenshot! I think you are right about zooming out. Below is the 3 min chart. I drew a white arrow where you were taking your trade this morning. It definitely helps take some of the noise out of the move. On the 1 min chart, one thing did stand out to me. Both ema's still have a downward slope, and the ema cloud is relatively thick. Typically price won't skyrocket through a thick ema cloud with both averages pointed downward. Generally speaking, I would like to see at least the fast average turning upward (preferably both).

 

[tosman]

What timeframe have you guys had the most success with? Got killed today on the 1 minute.. oops!

@lolreconlol I was using the 1 min timeframe for trading /ES and got killed too on one day. Another day, I made about $300, but it took like 15 trades to do so - some winning and some losing (and on ThinkorSwim with the fees was not a good outcome).
So now trying out the 10 min timeframe.
For stocks, based on the advice given in this thread, I refer to both 5 min and 15 min timeframes. Have had better outcomes with the larger timeframes.

@Christopher84 I do want to add that the C3_Max_v2 is a really good indicator along with the other indicators Scalper_v2, Super_OB_OS, etc. I think I have come to realize that I am not good at scalping and hence the 1 min timeframe Scalper chart killed me. I do better at day/swing trading using longer timeframes. Thank you for the indicators and your suggestions

 

[qimy6688]

Hi Christopher. I just start to use your code. I use to trade SPY options for one day by 1min timeframe. so which version is the best for SPY? the "C3 v5 FOREX & SPX"?

 

[lolreconlol]

Hi @lolconlol!
Thank you for the screenshot! I think you are right about zooming out. Below is the 3 min chart. I drew a white arrow where you were taking your trade this morning. It definitely helps take some of the noise out of the move. On the 1 min chart, one thing did stand out to me. Both ema's still have a downward slope, and the ema cloud is relatively thick. Typically price won't skyrocket through a thick ema cloud with both averages pointed downward. Generally speaking, I would like to see at least the fast average turning upward (preferably both).

Thank you! When you're buying calls/puts, do you try to buy when it's oversold/overbought, or will you follow the arrows regardless of where they are on the chart? Could you share a few trades you've done recently so I could go back and review what you were seeing? For example, SPY, around 1:20 on the 10 minute chart, there was a green arrow. Should you ignore this arrow because it's in no-man's land, between S/R?

 

[ALV]

Hi Christopher. I just start to use your code. I use to trade SPY options for one day by 1min timeframe. so which version is the best for SPY? the "C3 v5 FOREX & SPX"?

My two cents related to your question since I trade SPY and SPX options. I used the C3 v5 FOREX & SPX in 2 and 5 min charts with good results. Now I am testing the new C3 MAX V2 SPX ( you can find in page 1) for SPY Options.

 

[qimy6688]

My two cents related to your question since I trade SPY and SPX options. I used the C3 v5 FOREX & SPX in 2 and 5 min charts with good results. Now I am testing the new C3 MAX V2 SPX ( you can find in page 1) for SPY Options.

Thank you very much for your reply. I will have a try in 2min.

 

[TapthatAsk]

@Christopher84 do you have a scan when the price closes below or above the clouds?

 

[Christopher84]

@Christopher84 do you have a scan when the price closes below or above the clouds?

Hi @TapthatAsk,
That portion of the code is too complex for tos to scan for.

 

[BigScalp]

Hi @majidg,
All of my codes are available on pg.1 of this thread. The lower study you are referring to is the EMAD_Range indicator. That code is toward the end of my codes posted on pg.1 of this thread. I have done my best to label them. Hope this helps!

So is the lower indicator actually titled as "EMAD_RANGE" because if it is I cannot find it for the life of me

 

[Christopher84]

So is the lower indicator actually titled as "EMAD_RANGE" because if it is I cannot find it for the life of me

Hi @BigScalp!
The EMAD_Range can be found on pg.1. It's toward the bottom of the codes that I have posted on that page.

 

[TapthatAsk]

Hi @TapthatAsk,
That portion of the code is too complex for tos to scan for.

@Christopher84 Yea I figured that, I tried before I sent the message and was denied lol figured I did something wrong, would've been nice to see this though. What about a scan for when the stock is in the major support area or major resistance area? I've noticed through some testing and monitoring during market hours the support seems to behave like a demand zone when the stock reaches it. Do you think a scan would be too complex to know this as well?

 

[alexsmith3546]

@Christopher84 thank you yet again for an awesome update, Havent been on the forum for a while and just saw the update and installed it and have been backtesting as much as I can. A few questions

1. Doing a bit of backtesting, i am finding the 15 minute chart seems to throw the least false positives for day trading (tried 10 minutes, 5 and 3 and I kept on getting fooled thinking the trend was turning negative when it was just a short term pullback). That said, I am also looking at how I can adapt this to longer term swings (when the market stop beings so volatile) and while the 1H trend works, was wondering if you had any success with longer time frames. I know you mentioned 4H in one of your comments but wanted to check and see how you found the overall reliablity.
2 I was backtesting the C3 Max line and the relationship to the EMA cloud and I found that when the line is above the cloud and green, Going Long works well but when the line turns red and goes below the ema cloud, thens puts work best. That said, I have noticed that sometimes the line turns red but stays in the cloud and reverts back to green soon,how do you handle those scenarios. I am thinking a combination of two timeframes (5 and 15Minute) might help avert some false negatives but I would love to hear your input on this. Also would it be possible to get a scan of when C3 Max line is below the cloud or above the cloud ( I am guessing No but was just wondering since that would seriously help scope down the stocks to look at)
3. I am trying to best understand how to use the red and green resistance\support zones. I understand the tops and bottoms of these zones serve as resistance\support but do you often find that if the bottom or top line is broken, the price usually rises to the top of the red zone or continues to fall to the bottom of the green zone. Looking at the charts, seems like that happens a lot but I am just trying to figure out if the price breaks past my target level, should I move my target levels again to the top or bottom as the need maybe.


Reading through the comments, i saw that you had to spend time in the hospital, hope you are much better now.

 

[Christopher84]

@Christopher84 thank you yet again for an awesome update, Havent been on the forum for a while and just saw the update and installed it and have been backtesting as much as I can. A few questions

1. Doing a bit of backtesting, i am finding the 15 minute chart seems to throw the least false positives for day trading (tried 10 minutes, 5 and 3 and I kept on getting fooled thinking the trend was turning negative when it was just a short term pullback). That said, I am also looking at how I can adapt this to longer term swings (when the market stop beings so volatile) and while the 1H trend works, was wondering if you had any success with longer time frames. I know you mentioned 4H in one of your comments but wanted to check and see how you found the overall reliablity.
2 I was backtesting the C3 Max line and the relationship to the EMA cloud and I found that when the line is above the cloud and green, Going Long works well but when the line turns red and goes below the ema cloud, thens puts work best. That said, I have noticed that sometimes the line turns red but stays in the cloud and reverts back to green soon,how do you handle those scenarios. I am thinking a combination of two timeframes (5 and 15Minute) might help avert some false negatives but I would love to hear your input on this. Also would it be possible to get a scan of when C3 Max line is below the cloud or above the cloud ( I am guessing No but was just wondering since that would seriously help scope down the stocks to look at)
3. I am trying to best understand how to use the red and green resistance\support zones. I understand the tops and bottoms of these zones serve as resistance\support but do you often find that if the bottom or top line is broken, the price usually rises to the top of the red zone or continues to fall to the bottom of the green zone. Looking at the charts, seems like that happens a lot but I am just trying to figure out if the price breaks past my target level, should I move my target levels again to the top or bottom as the need maybe.


Reading through the comments, i saw that you had to spend time in the hospital, hope you are much better now.

Hi @alexsmith3546!
1. The key with the lower timeframe charts (like the 3 min and the 5 min) is to resist the urge to counter trend trade. The whippy nature of the price action on these timeframes can leave traders feeling like the market is going shift and go the opposite direction at any second. This results in taking long positions in the middle of a sell off and taking short positions when the price is in a strong up trend. Having all of the elements in C3 in sync can help to avoid this problem. Watching the ema's and the ema cloud can definitely give a lot of insight on the trend strength and direction. For example, if there is a large red ema cloud with both averages sloped downward, I wouldn't be looking to enter a long position even if I had a green arrow, green candle, and green C3_MF_Line. That big red cloud overhead represents resistance. It is rare that price will just pierce straight though this. Seek to trade with the trend, not bet on pivots. Using the 15 min timeframe is great. I'm a fan of the 30 min chart (I'm currently using to swing TSLA). I have also used the 4 hour chart reliably in the past, however my current strategies are revolving around the 3 min, 10 min, and 30 min charts.
2. I think I touched on this a bit in the first question. What you are noticing is agreement in the trend. So when the C3_MF_Line is green and above the ema cloud going long works well. Totally agree with your observation. One thing that I would add to to this is to be patient and try to make your entries at or near the C3_MF_Line. It can help improve your profitability on a trade considerably. Unfortunately, scanning for this condition is too complex for ToS.
3. If price is in a red OB Zone, and then closes below that zone (usually accompanied by a red arrow, red candle or red C3_MF_Line), I take that as a sign that the trend maybe shifting. This is typically an opportunity to take profit if I was long on the trade. On lower timeframes the red and green zones can show when price is trending heavily (when price is band wrapped and the zone is active), When the zones go from an active state (band wrapping price) to static state, this will initiate choppy trend consolidation around those levels or a potential trend reversal.

I am posting a new C3_Max_v2_MA_Strategy on pg.1 of the thread. The MA length is adjustable to allow you to gear it toward the timeframe and asset you are trading. I would suggest using the floating p/l study to help dial in the strategy. The one I am posting is geared toward the /es 3 min chart. Note that I keep aftermarket hours off. You can use the various signals in C3_Max to help you know when to take profit. For instance, if you were in a long position and saw a red arrow or red candle or red C3_MF_Line, you would know that was an opportunity to take profits on your long trade. Just reverse the logic for a short trade. I hope this helps! Happy Trading!

 

[tosman]

@Christopher84 Thank you again for the detailed response to another poster and for the new indicator. Sorry, more questions on some of your response.

1. You mentioned "I am posting a new C3_Max_v2_MA_Strategy on pg.1 of the thread.". Does this replace the strategy "C3_Max_v2 Strategy LE_SE"? I have been using the latter to trade /ES and also equities. Would you use either strategy for equities vs futures?

2. I have also been using the Scalper study for stocks on 15 min timeframe and have had some successes in day trading NVDA, NFLX, AAPL. I might have to try the 30 min timeframe with the Scalper. Any recommendations in using either the Scalper or C3_Max_v2 or perhaps both?

3. You described "The MA length is adjustable to allow you to gear it toward the timeframe and asset you are trading". I believe you have the MA length at 55 for a 3 min timeframe for /ES. How am I to determine the length for other timeframes? Is there a mathematical formula to determine the MA length or is it just trying different values and see what works best?

 

[Christopher84]

@Christopher84 Thank you again for the detailed response to another poster and for the new indicator. Sorry, more questions on some of your response.

1. You mentioned "I am posting a new C3_Max_v2_MA_Strategy on pg.1 of the thread.". Does this replace the strategy "C3_Max_v2 Strategy LE_SE"? I have been using the latter to trade /ES and also equities. Would you use either strategy for equities vs futures?

2. I have also been using the Scalper study for stocks on 15 min timeframe and have had some successes in day trading NVDA, NFLX, AAPL. I might have to try the 30 min timeframe with the Scalper. Any recommendations in using either the Scalper or C3_Max_v2 or perhaps both?

3. You described "The MA length is adjustable to allow you to gear it toward the timeframe and asset you are trading". I believe you have the MA length at 55 for a 3 min timeframe for /ES. How am I to determine the length for other timeframes? Is there a mathematical formula to determine the MA length or is it just trying different values and see what works best?

Hi @tosman!
1. No, this isn't a replacement to the LE_SE strategy. It's just another tool for your tool kit. I like it because of it's versatility/adaptability and the context that can be gained by using it with C3_Max. The MA_Strategy can be adapted for use on futures or equities. The Strategy LE_SE is primarily geared toward the 10 min /es chart. It will work well on a handful of other assets, but it's not as adaptable as the MA_Strategy.

2. I would suggest using the MA_Strategy on that timeframe. Reason being (as much as I like Scalper) the Scalper can repaint. It can be misleading on larger timeframes that allow for a higher risk of repainting to occur. I tend to use the scalper on 1 min charts. It's about the only study/strategy that I like on 1 min charts, but that is largely because it is multi timeframe (basically giving context outside of the noise of the 1 min timeframe). It tends to be the most successful in that configuration in my opinion (3min chart setup isn't bad either).

3. The way arrived at the 55 ema for the /es on the 3 min chart was through using the floating p/l study to assess the profitability and shape of the yield curve. That's the advantage of having it coded as a strategy that you can modify. It allows the trader to assess what MA length will yield the best results on a given asset and timeframe. Hope that helps shed some light on the new strategy. Let me know if I need to elaborate any further.

 

[tosman]

Hi @tosman!
1. No, this isn't a replacement to the LE_SE strategy. It's just another tool for your tool kit. I like it because of it's versatility/adaptability and the context that can be gained by using it with C3_Max. The MA_Strategy can be adapted for use on futures or equities. The Strategy LE_SE is primarily geared toward the 10 min /es chart. It will work well on a handful of other assets, but it's not as adaptable as the MA_Strategy.

2. I would suggest using the MA_Strategy on that timeframe. Reason being (as much as I like Scalper) the Scalper can repaint. It can be misleading on larger timeframes that allow for a higher risk of repainting to occur. I tend to use the scalper on 1 min charts. It's about the only study/strategy that I like on 1 min charts, but that is largely because it is multi timeframe (basically giving context outside of the noise of the 1 min timeframe). It tends to be the most successful in that configuration in my opinion (3min chart setup isn't bad either).

3. The way arrived at the 55 ema for the /es on the 3 min chart was through using the floating p/l study to assess the profitability and shape of the yield curve. That's the advantage of having it coded as a strategy that you can modify. It allows the trader to assess what MA length will yield the best results on a given asset and timeframe. Hope that helps shed some light on the new strategy. Let me know if I need to elaborate any further.

Thank you @Christopher84 !
I was not using the Scalper chart for its intended purpose. Glad to see your answers.
Regarding the MA length and yield curve, I will have to do some more reading on their relationship.

 

[Christopher84]

Thank you @Christopher84 !
I was not using the Scalper chart for its intended purpose. Glad to see your answers.
Regarding the MA length and yield curve, I will have to do some more reading on their relationship.

The floating p/l is telling you the profit or loss on a given strategy. By adjusting the MA Length, you will affect the strategy profit/loss. Try to find the MA Length that produces the highest profitability and stability in growth (avoids large losses and or draw downs).

 

[tosman]

The floating p/l is telling you the profit or loss on a given strategy. By adjusting the MA Length, you will affect the strategy profit/loss. Try to find the MA Length that produces the highest profitability and stability in growth (avoids large losses and or draw downs).

Ah, I see. Thanks.

 

[tosman]

The floating p/l is telling you the profit or loss on a given strategy. By adjusting the MA Length, you will affect the strategy profit/loss. Try to find the MA Length that produces the highest profitability and stability in growth (avoids large losses and or draw downs).

Hi @Christopher84 , here is what I am finding by changing the MA length. I will illustrate by comparing the same 10 min timeframe for NFLX and MSFT - using the C3_Max_v2 MA_Strategy. What I found is MA length of 35 maximizes the FPL for NFLX, but for MSFT the MA length is 8. Is this the right approach?

I am attaching 3 screenshots:
1. NFLX with MA length of 35
2. MSFT with MA length of 35 - lots of "red" FPL
3. MSFT with MA length of 8 - best I could find that has the most "green" FPL

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[Christopher84]

Hi @Christopher84 , here is what I am finding by changing the MA length. I will illustrate by comparing the same 10 min timeframe for NFLX and MSFT - using the C3_Max_v2 MA_Strategy. What I found is MA length of 35 maximizes the FPL for NFLX, but for MSFT the MA length is 8. Is this the right approach?

I am attaching 3 screenshots:
1. NFLX with MA length of 35
2. MSFT with MA length of 35 - lots of "red" FPL
3. MSFT with MA length of 8 - best I could find that has the most "green" FPL

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Hi @tosman!
For MSFT try 40 for the length on 10 min chart. Still not great, but better than your current settings. The 3 min chart for MSFT with a 35 length looks considerably better. The strategy doesn't work equally well on all timeframes. It takes some digging to find the right timeframe and MA setting.