Confirmation Candles Indicator For ThinkorSwim

[METAL]

C3 max. My first data point is always the red supply/green demand zones forming for 15 minutes (3 5 min candles).

I don’t use extended hours.

once a zone forms I watch rsi, stochastic rsi, macd, on balance volume modified, MFI, and candle patterns on the 1 min to have an idea which direction Tge 1 min will push the 5 min.

From there I use the 15/30 minute chart to see the overall trend for that zone.

I watch for a breakout to either side and buy calls or outs accordingly until a new zone forms on the 5 min chart.

I then scale or close out.

Almost ever trade I had gotten correct has been 100% gain.

Very rarely have I gotten less than 75%, and some have run almost 1000% if I’m lucky.

If I enter a trade on Tge possible breakout, I always create either a market GTC sell to trigger and get out of the trade if the price falls back halfway into the zone bc odds are I got caught in a fakeout or I put a stop loss using the price of the option to sell at a 30% loss.

I have gotten a few wrong but I have been right 80% of the time, and for much more gains than I take losses.

I really hate to ask, but, would you mind sharing your charts/setup. I am having a rough time figuring this out. I hope you don't mind me asking questions.

 

[latinbori123456]

I wouldn’t recommend using my setups. I’m very technical and my setups are information overload for most people.

I have over 20-30 indicators, some lower some in my chart, labels all over the place.

I started trading Feb 2021 and it took me up until a few weeks ago to be proficient in technical analysis and the c3 max indicator (I work and have a family so I have a hard time finding time to draw support and resistance zones during trading hours and by the time my day is done, I’m too tired to do it as night) to finally become profitable.

 

[latinbori123456]

My suggestion for new traders is to first use the c3 max and leave everything as default and just watch the red and green boxes get painted LIVE. Out of everything I have learned, the most important thing is understanding supply (red) and demand (green) zones are.

Most lower indicators are lagging and many of them work off price action without volume confirmation. Market makers and institutions will manipulate a chart (especially OTC) just to make indicators do certain things, only to tank and bag retail.

The way to counteract that is through supply and demand zones and some volume indicator, either standard bars or using the onbalancevolumemodified indicator in thinkorswim.

After that I would recommend using exponential moving averages 9/21/50/200 period and learn how those work and how important crosses are.

Then after that, learn how interrelated lower and higher timeframes are. What I do for that is my higher time frame is 4-6xthan my lower.

So if I have a lower timeframe of 1 min, my higher timeframe would be 5 min, and the next higher timeframe is 30, the next would be 2 hour, then day, then week, then month.

Anything else you start getting more advanced and it will be too much to learn all in one shot. Trust me, I know. I am working on a really small 4 figure account because I lost half of my small account last year in the OTC.

I was forced to learn the hard way bc I got in at the worst possible time, then 2022 made it even worse. I couldn’t do options so I kept trying to force bullish trades in a bearish market and kept losing money.

Had I known then what I know now, I wouldn’t touch OTC and just stick with options and supply, demand for entries and exits, and use 9/21 EMA to ride a trend lol. Anything else I didn’t really find a need for.

I just use the other indicators to create scanners to look for high conviction tickers when I want to swing.

 

[METAL]

My suggestion for new traders is to first use the c3 max and leave everything as default and just watch the red and green boxes get painted LIVE. Out of everything I have learned, the most important thing is understanding supply (red) and demand (green) zones are.

Most lower indicators are lagging and many of them work off price action without volume confirmation. Market makers and institutions will manipulate a chart (especially OTC) just to make indicators do certain things, only to tank and bag retail.

The way to counteract that is through supply and demand zones and some volume indicator, either standard bars or using the onbalancevolumemodified indicator in thinkorswim.

After that I would recommend using exponential moving averages 9/21/50/200 period and learn how those work and how important crosses are.

Then after that, learn how interrelated lower and higher timeframes are. What I do for that is my higher time frame is 4-6xthan my lower.

So if I have a lower timeframe of 1 min, my higher timeframe would be 5 min, and the next higher timeframe is 30, the next would be 2 hour, then day, then week, then month.

Anything else you start getting more advanced and it will be too much to learn all in one shot. Trust me, I know. I am working on a really small 4 figure account because I lost half of my small account last year in the OTC.

I was forced to learn the hard way bc I got in at the worst possible time, then 2022 made it even worse. I couldn’t do options so I kept trying to force bullish trades in a bearish market and kept losing money.

Had I known then what I know now, I wouldn’t touch OTC and just stick with options and supply, demand for entries and exits, and use 9/21 EMA to ride a trend lol. Anything else I didn’t really find a need for.

I just use the other indicators to create scanners to look for high conviction tickers when I want to swing.

Thank you for all the information. I I use 1m, 2m, 5, 10m, 30m and D, charts at all times. I do have many different lower indicators to assist with confirmations. I had not used the onbalancevolumemodified or MFI though. Will see what they can offer.
Do you use the C3Max with the options on same chart? Meaning the actual strike price option you have selected. Was just curious if you had any luck with that.

 

[latinbori123456]

Thank you for all the information. I I use 1m, 2m, 5, 10m, 30m and D, charts at all times. I do have many different lower indicators to assist with confirmations. I had not used the onbalancevolumemodified or MFI though. Will see what they can offer.
Do you use the C3Max with the options on same chart? Meaning the actual strike price option you have selected. Was just curious if you had any luck with that.

I don’t use charts on the options. Since I am in recovery mode on my account, I just pick a strike that is within my risk tolerance, which is REALLY tiny in dollar amounts ($50 max bc of my port being so small right now) in case the 0 dte expires, and put stop losses for a small percentage of that $50.

i know what I’m doing now, but that was after almost 2 years of net losses

I definitely suggest using some volume indicator. It will help avoid getting false signals on low volume manipulation. MFI is a volume weighted RSI, and onbalancevolumemodified (make sure you use the MODIFIED one bc TOS has 2 versions), is like a stochastic indicator but for volume. As buy volume comes in the OBVM line will cross over the signal and stay above it as long as buy volume continues to come in relative to price movement.

When you see prices consolidate but the OBVM is still above the signal, that is a new leg forming for the next run up. When you start seeing the OBVM start to dip and turn, that means buying is dying out, and when it crosses down, sellers will be coming in.

 

[METAL]

I don’t use charts on the options. Since I am in recovery mode on my account, I just pick a strike that is within my risk tolerance, which is REALLY tiny in dollar amounts ($50 max bc of my port being so small right now) in case the 0 dte expires, and put stop losses for a small percentage of that $50.

i know what I’m doing now, but that was after almost 2 years of net losses

I definitely suggest using some volume indicator. It will help avoid getting false signals on low volume manipulation. MFI is a volume weighted RSI, and onbalancevolumemodified (make sure you use the MODIFIED one bc TOS has 2 versions), is like a stochastic indicator but for volume. As buy volume comes in the OBVM line will cross over the signal and stay above it as long as buy volume continues to come in relative to price movement.

When you see prices consolidate but the OBVM is still above the signal, that is a new leg forming for the next run up. When you start seeing the OBVM start to dip and turn, that means buying is dying out, and when it crosses down, sellers will be coming in.

Thank you for that. I was just looking at how to utilize the OBVM. Do you know what the range is for the "consensus" label? I have searched and haven't found what the range is and how to utilize it properly. Thanks again.

 

[latinbori123456]

Thank you for that. I was just looking at how to utilize the OBVM. Do you know what the range is for the "consensus" label? I have searched and haven't found what the range is and how to utilize it properly. Thanks again.

def Agreement_Level = condition1 + condition2 + condition3 + condition4 + condition5 + condition6 + condition7 + condition8 + condition9 + condition10 + condition11 + condition12 + condition13 + condition14 + conditionK1UP + conditionK2UP;

def Agreement_LevelD = (condition1D + condition2D + condition3D + condition4D + condition5D + condition6D + condition7D + condition8D + condition9D + condition10D + condition11D + condition12D + condition13D + condition14D + conditionK3DN + conditionK4DN);

def Consensus_Level = Agreement_Level - Agreement_LevelD;

It’s basically a number that shows how many indicators are bullish, how many are bearish, and gives you a number. The higher the number the more bullish something else, the lower the more bearish.

The label just helps put the “number and math” into english.

The input Confirmation_Factor is used as a way to generate a signal. As the math in the consensus is done, once it hits the Confirmation_Factor threshold, signals will come and go as crossovers. You just can’t see it bc none of these are plotted on a chart.

 

[latinbori123456]

def Agreement_Level = condition1 + condition2 + condition3 + condition4 + condition5 + condition6 + condition7 + condition8 + condition9 + condition10 + condition11 + condition12 + condition13 + condition14 + conditionK1UP + conditionK2UP;

def Agreement_LevelD = (condition1D + condition2D + condition3D + condition4D + condition5D + condition6D + condition7D + condition8D + condition9D + condition10D + condition11D + condition12D + condition13D + condition14D + conditionK3DN + conditionK4DN);

def Consensus_Level = Agreement_Level - Agreement_LevelD;

It’s basically a number that shows how many indicators are bullish, how many are bearish, and gives you a number. The higher the number the more bullish something else, the lower the more bearish.

The label just helps put the “number and math” into english.

The input Confirmation_Factor is used as a way to generate a signal. As the math in the consensus is done, once it hits the Confirmation_Factor threshold, signals will come and go as crossovers. You just can’t see it bc none of these are plotted on a chart.

The current arrow signal is based in parabolic sar crossovers and are sometimes false during low volume manipulation or consolidation bc the price keeps going up and down. It works great as long as you have other things to validate the signal. Just FYI for those that use the arrows as buy and sell without using other things to validate.

 

[METAL]

def Agreement_Level = condition1 + condition2 + condition3 + condition4 + condition5 + condition6 + condition7 + condition8 + condition9 + condition10 + condition11 + condition12 + condition13 + condition14 + conditionK1UP + conditionK2UP;

def Agreement_LevelD = (condition1D + condition2D + condition3D + condition4D + condition5D + condition6D + condition7D + condition8D + condition9D + condition10D + condition11D + condition12D + condition13D + condition14D + conditionK3DN + conditionK4DN);

def Consensus_Level = Agreement_Level - Agreement_LevelD;

It’s basically a number that shows how many indicators are bullish, how many are bearish, and gives you a number. The higher the number the more bullish something else, the lower the more bearish.

The label just helps put the “number and math” into english.

The input Confirmation_Factor is used as a way to generate a signal. As the math in the consensus is done, once it hits the Confirmation_Factor threshold, signals will come and go as crossovers. You just can’t see it bc none of these are plotted on a chart.

Awesome. Thanks. I was curious if there was a specific number to look for as confirmation.

 

[latinbori123456]

Awesome. Thanks. I was curious if there was a specific number to look for as confirmation.

I left it at 7, but I also have 10 other indicators to help validate things.

 

[latinbori123456]

I left it at 7, but I also have 10 other indicators to help validate things.

I also use this to find volume spikes. Volume proceeds price. This is my standard volume graph. I don’t use the one that comes with TOS.

Between this, MFI, OBVM, and c3 max zones, I’ve been having better results to buy puts and calls
https://usethinkscript.com/threads/volume-buy-sell-pressure-with-hot-percent-for-thinkorswim.389/

 

[Walshy]

I also use this to find volume spikes. Volume proceeds price. This is my standard volume graph. I don’t use the one that comes with TOS.

Between this, MFI, OBVM, and c3 max zones, I’ve been having better results to buy puts and calls
https://usethinkscript.com/threads/volume-buy-sell-pressure-with-hot-percent-for-thinkorswim.389/

Interesting discussion. Thanks for sharing. Silly question, I'm not familiar with MFI. What does MFI refer to? Wanted to learn more, but when searched simply for "MFI", nothing obvious came up in the results.

edited:
May have answered my own question.
Did see MFI referred to as a volume weighted RSI.
https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/post-105041

Found a TV-converted volume weighted RSI in 'Questions'
https://usethinkscript.com/threads/volume-weighted-rsi-for-thinkorswim.11193/

Cheers.

 

[homeplate]

Hi @homeplate!
Confirmation Level will only show positive numbers. The number shown as the Confirmation Level, is the number of studies that are indicating an upward move in price. Look to Buy and Look to Sell use Consensus Level(looks at both upward and downward indications of price movement) instead of Confirmation Level (although Confirmation Level could likely be used in a similar fashion). As far as ideal time frame for trading, it's really just dependent on the trading style and asset you are looking trade as to what the ideal time frame may be. I have used these indicators on many different time frames and several different assets to execute different strategies. The best thing to do is to test your strategy thoroughly before attempting to execute it. Happy trading @homeplate!

Thank you Sir!

 

[latinbori123456]

Thank you Sir!

MFI is money flow index. Low volume high moves and high volume low moves would be considered equivalent.

Just FYI. Using this method I traded spy puts on the open and took one loss .30 to .26 at 10:51 market time and another .26 to .18 at 11:12 market time in the 5 min chart bc I didn’t wait for zones to form and volatility to die out.

After that I had a call when demand zone broke out to upside from .26 to .31 at 12:42 market time. Then anotger from .17 to .36 at 14:21 market time

For those that have c3 max, look at SPY 3 day/ 5 min without extended hours.

The indicator started making a red supply zone at the close yesterday and today it opened below the same zone.

I didn’t wait for a demand to form and got chopped up in losses.

A green demand zone formed starting 10:30 and the price broke out of that zone at 11:10.

I bought 2 calls in that big breakout. Then the price went back into that supply zone from yesterday and broke through that’s. Then it made another higher red zone and failed. I sold my first call in that zone once the price broke below the support.

I went back to the 1 min chart, saw a green demand zone, waited for the supprt on that zone to retest, and since it held I bought a call. 5 min later it broke out
Went back to the 5 min, saw anotger red zone formed, and I sold for 115% in 1.5 hours.

 

[hotwins]

For

For anyone interested, it’s literally just waiting for a green zone to form, buy 1 call (I use 1 for 100% gainers or buy and even number of calls and sell half when I hit 100 and ride the rest free) when the ticker breaks out of the zone to upside which a matching color trend line and signal arrow, and selling when a new red zone formed. As mentioned, I either close my 1 contract or sell half of my even positions to have the half I sold cover a complete loss on the other half at expiration and I ride those other options for free.

Buy puts on red zone and close out on the green ones.

If you use other indicators like MACD, stochastic, onbalancedvolume modified (all standard in TOS) you will avoid the chop days and not enter.

RSI above 50 is uptrend and below 50 is downtrend, OBVM is a stochastic but for volume, so crossovers help, MACD histogram divergences help, MFI above/below 51 are up/downtrend incorporating price and volume (combo of a candle chart and OBVM).

When you start seeing these all align, along with the consensus rating and these zones, it’s pretty much been very easy.

hello,

can you post charts to support of your buy & exit. I'm still learning how to use this. Thanks.

 

[latinbori123456]

MFI is money flow index. Low volume high moves and high volume low moves would be considered equivalent.

Just FYI. Using this method I traded spy puts on the open and took one loss .30 to .26 at 10:51 market time and another .26 to .18 at 11:12 market time in the 5 min chart bc I didn’t wait for zones to form and volatility to die out.

After that I had a call when demand zone broke out to upside from .26 to .31 at 12:42 market time. Then anotger from .17 to .36 at 14:21 market time

MFI is money flow index. Low volume high moves and high volume low moves would be considered equivalent.

Just FYI. Using this method I traded spy puts on the open and took one loss .30 to .26 at 10:51 market time and another .26 to .18 at 11:12 market time in the 5 min chart bc I didn’t wait for zones to form and volatility to die out.

After that I had a call when demand zone broke out to upside from .26 to .31 at 12:42 market time. Then anotger from .17 to .36 at 14:21 market time

For those that have c3 max, look at SPY 3 day/ 5 min without extended hours.

The indicator started making a red supply zone at the close yesterday and today it opened below the same zone.

I didn’t wait for a demand to form and got chopped up in losses.

A green demand zone formed starting 10:30 and the price broke out of that zone at 11:10.

I bought 2 calls in that big breakout. Then the price went back into that supply zone from yesterday and broke through that’s. Then it made another higher red zone and failed. I sold my first call in that zone once the price broke below the support.

I went back to the 1 min chart, saw a green demand zone, waited for the supprt on that zone to retest, and since it held I bought a call. 5 min later it broke out
Went back to the 5 min, saw anotger red zone formed, and I sold for 115% in 1.5 hours.

All this while working full time

 

[latinbori123456]

hello,

can you post charts to support of your buy & exit. I'm still learning how to use this. Thanks.

I won’t post charts. Sorry. The best advice I can give you is install the c3 max, leave the settings at default, and just open a 3 day 5 min chart on spy.

I listed timestamps of the exact minute I entered and exited and put a timeline in my description so peolle can learn to see things in their own.

Unfortunately it’s part of the learning process…. Fumbling along

You can see the most recent red zone broke to downside out of support 14:30 market time. Perfect put buy.

2 minutes later you got a MASSIVE 1 point selloff that then tricked down till green demand zone formed on the 5 min at 14:50

Could have went for a 424 strike expiring tomorrow from .15 and sell it for .40 conservatively in 20 minutes Bc of volatility

 

[Chemmy]

Hi @Christopher84 , first off let me just say I love your indicator so far. I just started using your C3 study for the first time today and it helped me ride SPY far more than I would have normally, so thank you right off the bat! I do have one question though, I've had a few instances after changing certain settings (i.e. averagetype to HULL, removing S/R lines) where the candle coloring no longer works -- usually this goes away after reloading the chart or changing settings and changing it back.

Have you heard of this happening before? I really like the candle coloring, and I do have one other study active that paints bars based a specific condition being met -- do you think it's just as simple as these studies clashing?

 

[HODL-Lay-HE-hoo!]

Awesome. Thanks. I was curious if there was a specific number to look for as confirmation.

I share my setup soon

 

[shizah]

My suggestion for new traders is to first use the c3 max and leave everything as default and just watch the red and green boxes get painted LIVE. Out of everything I have learned, the most important thing is understanding supply (red) and demand (green) zones are.

Most lower indicators are lagging and many of them work off price action without volume confirmation. Market makers and institutions will manipulate a chart (especially OTC) just to make indicators do certain things, only to tank and bag retail.

The way to counteract that is through supply and demand zones and some volume indicator, either standard bars or using the onbalancevolumemodified indicator in thinkorswim.

After that I would recommend using exponential moving averages 9/21/50/200 period and learn how those work and how important crosses are.

Then after that, learn how interrelated lower and higher timeframes are. What I do for that is my higher time frame is 4-6xthan my lower.

So if I have a lower timeframe of 1 min, my higher timeframe would be 5 min, and the next higher timeframe is 30, the next would be 2 hour, then day, then week, then month.

Anything else you start getting more advanced and it will be too much to learn all in one shot. Trust me, I know. I am working on a really small 4 figure account because I lost half of my small account last year in the OTC.

I was forced to learn the hard way bc I got in at the worst possible time, then 2022 made it even worse. I couldn’t do options so I kept trying to force bullish trades in a bearish market and kept losing money.

Had I known then what I know now, I wouldn’t touch OTC and just stick with options and supply, demand for entries and exits, and use 9/21 EMA to ride a trend lol. Anything else I didn’t really find a need for.

I just use the other indicators to create scanners to look for high conviction tickers when I want to swing.

Appreciate you laying out on how to trade with this indicator. For clarification, are you using this version of the indicator on page 1? #C3_Max_v2 Created by Christopher84 12/14/2021