Confirmation Candles Indicator For ThinkorSwim

[lolreconlol]

Hi @lolreconlol,
I see that you have your charts set to 3min and 15 min 5 Days, however longer periods (3min 30 Days and 15 min 90 days) are better since the yellow candles are based on the strategy's previous performance. Longer history results in better predictions on when the strategy is topping out. You can see in the image below that extending the history paints a little different picture.

Other than that, I would say that 8/24 was a choppy day where the two timeframes were never really in sync with each other. One other note is that the PLD was had flattened out considerably on the 15 min chart, which can be a que that the price action is chopping sideways. Generally speaking its best not to force a trade in these conditions. Wait for the strategies to sync up and present a higher probability trade. Hope this helps! Happy trading!

Thank you!! Never thought about that.. oh man! So do you typically buy when the candle with the cyan arrow closes, or wait for a yellow one? What's the difference? Thank you!!

 

[Christopher84]

Thank you!! Never thought about that.. oh man! So do you typically buy when the candle with the cyan arrow closes, or wait for a yellow one? What's the difference? Thank you!!

Hi @lolreconlol,
There's not a lot of difference. The cyan arrow is locked in at the close of the candle, the yellow arrow is the strategy opening a position at the open of the next candle. The BuySig and SellSig can be turned off in the plots.

 

[Christopher84]

The strategies were syncing up nicely this morning.

Here's how this morning's chart played out below. Yellow candles come in and the profits on the trade top out followed by sideways chop (very common after larger moves). Very nice call out by the strategies here.

 

[GiantBull]

@Christopher84 I know I am late to the party and being honest I did not read through most of the thread since it is the longest on this website I believe. First and foremost thank you for your hard work on this indicator. I'm going to say things that might come off as not appreciating your work but that is not my intention. I am actually very happy you made this indicator.

My first point is this. After reading through tons of multiple research papers and academic studies done on technical indicators, every indicator has a set of optimal parameters that is ideal for a certain period of time. If you use the default parameters that the creator has set as default you are bound to lose. For example, using the default setting of the MACD 12,26,9 you will lose money. This is backed by multiple studies. Fortunately, I know how to test for optimal parameters for the MACD and RSI through Excel but I have no idea how to do it for the other 11 indicators that are included in the Confirmation Candle indicator. Do you know how to test for these other indicators so we can use the optimal parameters making the indicator more precise?

My second point is I am a big fan of the TMO. This might be controversial but I think it is the most accurate and precise indicator for reversals on this website (no hate to yours I still love it lol). If you change the parameters of the TMO to 40,5,3 on the 3 min /ES chart you will notice that the indicator matches your indicator. Weird thing about these technical indicators is most of them will perform exactly the same as the others if you tweak the settings a bit. Anyways, if you just go of off the reversal in the OB and OS areas you will find a lot of more precise entries for reversal plays. I am wondering if this could be added to the Confirmation Candle indicator? I don't know how big of an impact it will be to the indicator but hopefully it can be more accurate than it already is. I am also not sure if someone has asked this already but If they have my apologies!

Just trying to make this indicator better than it already is!

 

[Christopher84]

@Christopher84 I know I am late to the party and being honest I did not read through most of the thread since it is the longest on this website I believe. First and foremost thank you for your hard work on this indicator. I'm going to say things that might come off as not appreciating your work but that is not my intention. I am actually very happy you made this indicator.

My first point is this. After reading through tons of multiple research papers and academic studies done on technical indicators, every indicator has a set of optimal parameters that is ideal for a certain period of time. If you use the default parameters that the creator has set as default you are bound to lose. For example, using the default setting of the MACD 12,26,9 you will lose money. This is backed by multiple studies. Fortunately, I know how to test for optimal parameters for the MACD and RSI through Excel but I have no idea how to do it for the other 11 indicators that are included in the Confirmation Candle indicator. Do you know how to test for these other indicators so we can use the optimal parameters making the indicator more precise?

My second point is I am a big fan of the TMO. This might be controversial but I think it is the most accurate and precise indicator for reversals on this website (no hate to yours I still love it lol). If you change the parameters of the TMO to 40,5,3 on the 3 min /ES chart you will notice that the indicator matches your indicator. Weird thing about these technical indicators is most of them will perform exactly the same as the others if you tweak the settings a bit. Anyways, if you just go of off the reversal in the OB and OS areas you will find a lot of more precise entries for reversal plays. I am wondering if this could be added to the Confirmation Candle indicator? I don't know how big of an impact it will be to the indicator but hopefully it can be more accurate than it already is. I am also not sure if someone has asked this already but If they have my apologies!

Just trying to make this indicator better than it already is!

Hi @GiantBull!
After reading your post, I decided to create TMO Candles with your suggested settings of 40.5.3 (https://tos.mx/ZpaNQlL). However, this doesn't seem to look anything like the candle coloring on C3_Max (no offense). See below. Yesterday (with your settings) TMO(top chart) is late to call the short position in comparison to C3_Max (bottom chart). Also, the trending with TMO isn't as smooth as C3 on the 3min chart creating more uncertainty and choppy appearance. Last but not least, the other components in C3_Max (ie OB/OS zones, C3_MF_Line, Moving Averages, squeeze dots) help to paint a clearer picture of support and resistance levels and trend.

That being said TMO is a great indicator, but I already use multiple momentum indicators within C3_Max, adding another wouldn't really do much at this point. The nice thing about C3_Max vs any single indicator is that it's relying on Consensus between all of its available studies. This makes it considerably more versatile between timeframes and different assets . Also, as far as predicting reversals the yellow candles in C3_Max along with its OB/OS zones make an extremely potent combination. Thank you for your observations. I really enjoyed looking into this. Happy trading @GiantBull!

 

[HODL-Lay-HE-hoo!]

@Christopher84 is it possible to historically track consensus levels throughout a given period of time? There is an IV study from mobius that shows the estimated move of an underlying as well as labels that show how often the price is above or below the estimated move which got me thinking about tracking consensus level on a given timeframe. However I suppose past performance does not indicate future performance applies?

 

[Christopher84]

It's always good to remember to look at larger timeframes. Look at the /es on the day chart using C3_Max. It's very easy to establish the controlling trend as well as potential support/resistance zones. Happy trading!

 

[tradelxrd]

Hey @Christopher84 Thanks for sharing! Was wondering if you have a watchlist column for #Scalper Upper v2 Created 02/01/2022 by Christopher84 that would show the bearish/bullish signals inside a watchlist column. Tried to edit the code myself but I had no luck. Thanks again!

 

[lolreconlol]

It's always good to remember to look at larger timeframes. Look at the /es on the day chart using C3_Max. It's very easy to establish the controlling trend as well as potential support/resistance zones. Happy trading!

Hello @Christopher84 !

If you were going to try to play the reversal off the SPY support at 390, would you buy as you approach the area, or wait until we get an up arrow on the daily? Or would you be looking at a different timeframe? Thank you as always!

 

[HODL-Lay-HE-hoo!]

Hello @Christopher84 !

If you were going to try to play the reversal off the SPY support at 390, would you buy as you approach the area, or wait until we get an up arrow on the daily? Or would you be looking at a different timeframe? Thank you as always!

I wouldn’t be playing the bullish side at the moment… but if you were to play a reversal up or down wait until it closes above or below the green or red box and use the line color and arrows on multiple time frames to confirm.

 

[eagle_ai]

Very nice work

 

[HODL-Lay-HE-hoo!]

Hey @Christopher84 Thanks for sharing! Was wondering if you have a watchlist column for #Scalper Upper v2 Created 02/01/2022 by Christopher84 that would show the bearish/bullish signals inside a watchlist column. Tried to edit the code myself but I had no luck. Thanks again!

Are you referring to the label bullish/bearish to show in a WL?

 

[Zlotko]

It's always good to remember to look at larger timeframes. Look at the /es on the day chart using C3_Max. It's very easy to establish the controlling trend as well as potential support/resistance zones. Happy trading!

Hi @Christopher84 ,
Love your charts and indicators.
What have you been using most often and could you shared chart link?
Thanks

 

[eagle_ai]

Hi @Christopher84 ,
Love your charts and indicators.
What have you been using most often and could you shared chart link?
Thanks

C3_Max is the very first post on page 1 of this thread. FYI, all of Christopher's most updated strategies/studies can be found on page 1 of this thread

 

[Christopher84]

Hey @Christopher84 Thanks for sharing! Was wondering if you have a watchlist column for #Scalper Upper v2 Created 02/01/2022 by Christopher84 that would show the bearish/bullish signals inside a watchlist column. Tried to edit the code myself but I had no luck. Thanks again!

Hi @tradelxrd,
That would make an excellent watchlist column! Unfortunately the watchlist columns in ToS do not support multi-timeframe. Thank you for the suggestion!

 

[Christopher84]

Hello @Christopher84 !

If you were going to try to play the reversal off the SPY support at 390, would you buy as you approach the area, or wait until we get an up arrow on the daily? Or would you be looking at a different timeframe? Thank you as always!

Hi @lolreconlol,
I typically trade with the larger timeframe trend and try to avoid mean reversions. However, If I were going to attempt to trade that, I would want to see it gain support first. Generally speaking, its better to look for profitable opportunities in the trend direction.

 

[Zlotko]

C3_Max is the very first post on page 1 of this thread. FYI, all of Christopher's most updated strategies/studies can be found on page 1 of this thread

Yes but I am looking for the headlights indicator the two lines on the end.

 

[Christopher84]

Yes but I am looking for the headlights indicator the two lines on the end.

Hi @Zlotko,
I believe the code you are looking for is here https://usethinkscript.com/threads/sma-extension.5953/page-2#posts. Hope this helps!

 

[METAL]

Hey @Christopher84, Curious, Which strategy is your goto? You have so many awesome strats. C3Max, C3Max_Spark, PLD Bands, ScalperV2, CC V6,.

 

[Christopher84]

Hey @Christopher84, Curious, Which strategy is your goto? You have so many awesome strats. C3Max, C3Max_Spark, PLD Bands, ScalperV2, CC V6,.

Hi @METAL,
I currently use a 3 chart setup for the /es (although this could be used on other assets). C3_Max Day chart, TS_v9 15 min chart, PLD Bands 3 min chart. I look for the day chart and 15 min chart to be in agreement and make my entries and exits on the 3 min chart. This setup helps keep me out of choppy unprofitable trades. Currently I'm not leaving trades on overnight, and my strategy reflects more of a scalping style. However, I do enjoy swing trading the 30 min chart and holding trades overnight when market conditions are more favorable. Happy trading!