Directional Credit Spread Strategy For ThinkOrSwim

@agorena123 I have been watching this strategy on the side. It seems to have potential. I have a question about the direction of the channel. Do you look at if the channel is positive, negative or sideways? I wonder if it should be an influencer of which direction the options should be entered. If the close is in the lower deviation area and channel is pointing up, then go long? or doesn't matter?
 

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barbaros said:
@agorena123 I have been watching this strategy on the side. It seems to have potential. I have a question about the direction of the channel. Do you look at if the channel is positive, negative or sideways? I wonder if it should be an influencer of which direction the options should be entered. If the close is in the lower deviation area and channel is pointing up, then go long? or doesn't matter?
Click to expand...

@barbaros I do pay attention to the channel, but primarily base the trade on the price level in relation to the 2 STD. Most, but not all of the time, price will bounce off of those levels regardless of the channel direction.
 
Took 3/3 successful trades with this setup so far. Works good :) I wish I could spend more time digging in to this as I have a day job. I did use this setup in conjunction with confirmation from other indicators like BTD, Accumulation & Distribution. Need to figure out an exit strategy!
 
germanburrito said:
Yeah man I also have developed a look back regression channel for whatever time frame you like with two deviation channels if you want to look at a certain number of bars, its not my code I just added two std dev.

Code: 
# LRC no Lines Global Color Adj
# With help from coder in TOS chat support 9-18-2020
# Originally: tradingview like Linear Channel w/ fills
# @JonPM Community Request in useThinkscript
# VERSION
# 2020.09.08 V1.0 @diazlaz - Linear Regression Channel with Cloud and variable
#                            timeframe.
# 2020.09.18 V1.1 @markos - Color Opacity can now be changed via Globals in UI.

input price = close;
input deviations = 1.0;  #set your deviation units here.
input deviations2 = 2.0;  #set your deviation units here.
input length = 80; #set your channel lookback period here.

def regression = InertiaAll(price, length);
def stdDeviation = StDevAll(price, length);
plot UpCloud = regression + deviations * stdDeviation;
plot DnCloud = regression - deviations * stdDeviation;
def UpCloud2 = (regression + deviations2 * stdDeviation);
def DnCloud2 = (regression - deviations2 * stdDeviation);
def MiddleLine = regression;


DefineGlobalColor("Bullish2", Color.LIGHT_GREEN);
DefineGlobalColor("Bearish2", Color.LIGHT_RED);

UpCloud.setdefaultColor(Color.white);
dnCloud.setdefaultColor(Color.white);
AddCloud(MiddleLine,  UpCloud2,  GlobalColor("Bullish2"),  GlobalColor("Bullish2"));
AddCloud(MiddleLine,  DnCloud2,  GlobalColor("Bearish2"),  GlobalColor("Bearish2"));
# End LRC wo Lines
Click to expand...
I am looking into building a strategy similar to whats being discussed here. I am new to options but through research I am considering implementing a credit spread strat. I am considering using the bollinger bands, price action and ichimoku for entry direction and forecasting... I am not formilliar with wha=t your indicator above works....Could you kindly give a brief explanation? I would like to try and use it if possible.
 
agorena123 said:
NVDA again on Monday when it hit above 3rd SD, sold the 590/595 calls. Closed on Tuesday when the spread hit 80% of its profit potential. Some good choices hitting the bottom bands, FB, AMZN, and NFLX but did not take the bull put spreads as my bias right now is to the downside. I'd rather sell the exuberance given the political craziness and what I think is greater downside potential.

Update - took ZM this morning and the 400/405 call credit spread.
Click to expand...
@agorena123 , is there any way you can show in chart, that NVDA hit above 3rd SD, (on Jan 11) it seems I am missing something.
 
agorena123 said:
This may be helpful. TheoTrade's auto expected move indicator:

Code: 
# TheoTrade_Weely_Expected_Move
# Copyright TheoTrade LLC
# V08.11.2017
# Free for use. Header credits must be included when any form of the code included in # this package is used.
#
# User assumes all risk. Author not responsible for errors or use of tool.
# scripted by Todd Rind
#
# Thanks to all those who have freely shared ThinkScript concepts over the Web.
#
# The study is used to analyze the DAILY CLOSING performance of an equity against
# the expected move (EM) for any ticker.
# The study works for daily aggregation only.
# Best performance will be against ETF's due to the option and stock implied volatility
# typically being close. When looking at equities, earnings will cause a difference
# between volatility for options and stock. That is, option volatility may be
# elevated as compared to the stock volatility. Since option volatility cannont
# be accessed from ThinkScript, the script EM will be lower than the EM found
# in the option chain.
#
# NEW LOGIC
#
# Drawing line from previous close.
# Completed the daily calculations for inside EM.
# Turned the "dots" for the bars exceeding EM to RED.
# Added logic for "touches". The "dots" for touches are BLUE.
# Touches are a calculated bandwidth around the EM bars. EX:
# High touches occur when either the high or close is within the calculated
# bandwith of the EM. Default is 90% of EM.
#
# MINOR ISSUES TO MONITOR
#
# Remove the bars not marked with EM levels from the % occurance calculation.
# Fixed by making sure high & low bar > 1.
#
# Note sent to TOS Support about counter issues when checking day number-no response
# from TO. It appears that occasionally a bar out of view is used as the start.
# Seems to sometimes make Friday count one to many.
#
#-------------------- Header End ----------------------------

def agg = GetAggregationPeriod();

def err_label = if agg == AggregationPeriod.DAY then
no
else
yes;

AddLabel(err_label, "Expected Move Study - Works with daily aggregation only.", Color.RED);

input em_skew_percent = 70;
input em_bandwidth = 100;
input touches_percent = 90;

input show_high_bubble = yes;
input show_low_bubble = yes;
input show_high_dots = yes;
input show_low_dots = yes;
input show_touches_high_dots=yes;
input show_touches_low_dots=yes;
input show_touches_daily=yes;

input show_em_calc = yes;
input show_highlow_detail = yes;
input show_highlow_daily = yes;
input show_highlow_daily_inside= yes;

#
# em_bandwith allow for narrow or wider ranges to be tested. 1.0 is normal.
# for 0.5 Std Dev, then em_bandwidth = 0.5 Entered in % changed to decimal.
# That is, allows for ajustment so that analysis can be made of Iron Fly expected #performance.

#
# suggest leaving start & expire static.
# start = 1 ==> Will pull EM data from previous bar. Assumed to be FRIDAY. CLOSING
# then expires next Friday ==> 6 days. Assumes
# calculating expected move on Saturday.
#
#
#
# Note - no longer allowing EM calculation days to change.
#
# input em_day_start = 1;
#input em_day_expire = 6;

#
# routine to force looking for the highest bar number
#

def barcount = BarNumber();
def lastbar = HighestAll(if IsNaN(high) then 0 else barcount);

def ivGapHi;
def expmove;
def high_bar;
def low_bar;
def em_close;
def weekcnt;
def touch_high_bar;
def touch_low_bar;

############ logic to check for holidays #########
#
# Change EM calculation on Monday (Day #1) or when last trading day
# was a Friday (Day #5) and the current day is Tuesday (Day #2).
#
# Continue assumption that EM is being calculated on a Saturday. 6 days
# to expire.
#
#

if GetDayOfWeek(GetYYYYMMDD()) == 1 or (getdayofweek(getYYYYMMDD()[1]) == 5 and getdayofweek(getyyyymmdd()) == 2)
then {

ivGapHi = imp_volatility()[1];

expmove = close[1] * ivGapHi * Sqrt(6) / Sqrt(365) * em_skew_percent / 100 * em_bandwidth / 100;

high_bar = close[1] + expmove;
touch_high_bar = close[1] + (expmove * touches_percent/100);
low_bar = close[1] - expmove;
touch_low_bar = close[1] - (expmove * touches_percent/100);
em_close = close[1];
weekcnt=weekcnt[1] + 1;

}
else {
ivGapHi = ivGapHi[1];
expmove = expmove[1];
high_bar = high_bar[1];
touch_high_bar = touch_high_bar[1];
low_bar = low_bar[1];
touch_low_bar= touch_low_bar[1];
em_close = em_close[1];
weekcnt = weekcnt[1];

}

#
# calculations for over EM
#

def peak = if high_bar > 1 and close > high_bar then 1 else 0;

def peakcnt = if peak then peakcnt[1] + 1 else peakcnt[1];
def peakamt = if peak then peakamt[1] + close - high_bar else peakamt[1];

#################### daily bar logic -- over EM
#
# Continue to monitor Friday's for count.

def fripeak = if high_bar > 1 and close > high_bar and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def fripeakcnt = if fripeak then fripeakcnt[1] + 1 else fripeakcnt[1];
def fripeakamt = if fripeak then fripeakamt[1] + close - high_bar else fripeakamt[1];

def thupeak = if high_bar > 1 and close > high_bar and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thupeakcnt = if thupeak then thupeakcnt[1] + 1 else thupeakcnt[1];
def thupeakamt = if thupeak then thupeakamt[1] + close - high_bar else thupeakamt[1];

def wenpeak = if high_bar > 1 and close > high_bar and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wenpeakcnt = if wenpeak then wenpeakcnt[1] + 1 else wenpeakcnt[1];
def wenpeakamt = if wenpeak then wenpeakamt[1] + close - high_bar else wenpeakamt[1];

def tuepeak = if high_bar > 1 and close > high_bar and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuepeakcnt = if tuepeak then tuepeakcnt[1] + 1 else tuepeakcnt[1];
def tuepeakamt = if tuepeak then tuepeakamt[1] + close - high_bar else tuepeakamt[1];

def monpeak = if high_bar > 1 and close > high_bar and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def monpeakcnt = if monpeak then monpeakcnt[1] + 1 else monpeakcnt[1];
def monpeakamt = if monpeak then monpeakamt[1] + close - high_bar else monpeakamt[1];

#
# calculations for under EM
#

def valley = if low_bar > 1 and close < low_bar then 1 else 0;

def valleycnt = if valley then valleycnt[1] + 1 else valleycnt[1];
def valleyamt = if valley then valleyamt[1] + low_bar - close else valleyamt[1];

#################### daily bar logic -- uner EM
#
# Continue to monitor Friday's for count.

def frivalley = if low_bar > 1 and close < low_bar and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def frivalleycnt = if frivalley then frivalleycnt[1] + 1 else frivalleycnt[1];
def frivalleyamt = if frivalley then frivalleyamt[1] + low_bar - close else frivalleyamt[1];

def thuvalley = if low_bar > 1 and close < low_bar and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thuvalleycnt = if thuvalley then thuvalleycnt[1] + 1 else thuvalleycnt[1];
def thuvalleyamt = if thuvalley then thuvalleyamt[1] + low_bar - close else thuvalleyamt[1];

def wenvalley = if low_bar > 1 and close < low_bar and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wenvalleycnt = if wenvalley then wenvalleycnt[1] + 1 else wenvalleycnt[1];
def wenvalleyamt = if wenvalley then wenvalleyamt[1] + low_bar - close else wenvalleyamt[1];

def tuevalley = if low_bar > 1 and close < low_bar and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuevalleycnt = if tuevalley then tuevalleycnt[1] + 1 else tuevalleycnt[1];
def tuevalleyamt = if tuevalley then tuevalleyamt[1] + low_bar - close else tuevalleyamt[1];

def monvalley = if low_bar > 1 and close < low_bar and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def monvalleycnt = if monvalley then monvalleycnt[1] + 1 else monvalleycnt[1];
def monvalleyamt = if monvalley then monvalleyamt[1] + low_bar - close else monvalleyamt[1];

#
# Calc within for iron fly
#
#

def monpeakin = if high_bar > 1 and close < high_bar and close >= em_close and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def monpeakcntin = if monpeakin then monpeakcntin[1] + 1 else monpeakcntin[1];
def monpeakamtin = if monpeakin then monpeakamtin[1] + close - em_close else monpeakamtin[1];

def monvalleyin = if low_bar > 1 and close > low_bar and close < em_close and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def monvalleycntin = if monvalleyin then monvalleycntin[1] + 1 else monvalleycntin[1];
def monvalleyamtin = if monvalleyin then monvalleyamtin[1] + em_close - close else monvalleyamtin[1];

def tuepeakin = if high_bar > 1 and close < high_bar and close >= em_close and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuepeakcntin = if tuepeakin then tuepeakcntin[1] + 1 else tuepeakcntin[1];
def tuepeakamtin = if tuepeakin then tuepeakamtin[1] + close - em_close else tuepeakamtin[1];

def tuevalleyin = if low_bar > 1 and close > low_bar and close < em_close and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuevalleycntin = if tuevalleyin then tuevalleycntin[1] + 1 else tuevalleycntin[1];
def tuevalleyamtin = if tuevalleyin then tuevalleyamtin[1] + em_close - close else tuevalleyamtin[1];

def wenpeakin = if high_bar > 1 and close < high_bar and close >= em_close and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wenpeakcntin = if wenpeakin then wenpeakcntin[1] + 1 else wenpeakcntin[1];
def wenpeakamtin = if wenpeakin then wenpeakamtin[1] + close - em_close else
wenpeakamtin[1];

def wenvalleyin = if low_bar > 1 and close > low_bar and close < em_close and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wenvalleycntin = if wenvalleyin then wenvalleycntin[1] + 1 else wenvalleycntin[1];
def wenvalleyamtin = if wenvalleyin then wenvalleyamtin[1] + em_close - close else wenvalleyamtin[1];

def thupeakin = if high_bar > 1 and close < high_bar and close >= em_close and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thupeakcntin = if thupeakin then thupeakcntin[1] + 1 else thupeakcntin[1];
def thupeakamtin = if thupeakin then thupeakamtin[1] + close - em_close else
thupeakamtin[1];

def thuvalleyin = if low_bar > 1 and close > low_bar and close < em_close and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thuvalleycntin = if thuvalleyin then thuvalleycntin[1] + 1 else thuvalleycntin[1];
def thuvalleyamtin = if thuvalleyin then thuvalleyamtin[1] + em_close - close else thuvalleyamtin[1];

def fripeakin = if high_bar > 1 and close < high_bar and close >= em_close and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def fripeakcntin = if fripeakin then fripeakcntin[1] + 1 else fripeakcntin[1];
def fripeakamtin = if fripeakin then fripeakamtin[1] + close - em_close else fripeakamtin[1];

def frivalleyin = if low_bar > 1 and close > low_bar and close < em_close and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def frivalleycntin = if frivalleyin then frivalleycntin[1] + 1 else frivalleycntin[1];
def frivalleyamtin = if frivalleyin then frivalleyamtin[1] + em_close - close else frivalleyamtin[1];

#
# touches calculations
#
# testing to determine if high or close was within touches% of highbar
# or
# if low or close was within touches% of lowbar
#

def touchpeak = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) then 1 else 0;
def touchpeakcnt = if touchpeak then touchpeakcnt[1] + 1 else touchpeakcnt[1];

def touchvalley = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) then 1 else 0;
def touchvalleycnt = if touchvalley then touchvalleycnt[1] + 1 else touchvalleycnt[1];

#
# touches detail
#

def montouchpeakin = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def montouchpeakcntin = if montouchpeakin then montouchpeakcntin[1] + 1 else montouchpeakcntin[1];

def montouchvalleyin = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 1 then 1 else 0;
def montouchvalleycntin = if montouchvalleyin then montouchvalleycntin[1] + 1 else montouchvalleycntin[1];

def tuetouchpeakin = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuetouchpeakcntin = if tuetouchpeakin then tuetouchpeakcntin[1] + 1 else tuetouchpeakcntin[1];

def tuetouchvalleyin = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 2 then 1 else 0;
def tuetouchvalleycntin = if tuetouchvalleyin then tuetouchvalleycntin[1] + 1 else tuetouchvalleycntin[1];

def wentouchpeakin = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wentouchpeakcntin = if wentouchpeakin then wentouchpeakcntin[1] + 1 else wentouchpeakcntin[1];

def wentouchvalleyin = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 3 then 1 else 0;
def wentouchvalleycntin = if wentouchvalleyin then wentouchvalleycntin[1] + 1 else wentouchvalleycntin[1];

def thutouchpeakin = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thutouchpeakcntin = if thutouchpeakin then thutouchpeakcntin[1] + 1 else thutouchpeakcntin[1];

def thutouchvalleyin = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 4 then 1 else 0;
def thutouchvalleycntin = if thutouchvalleyin then thutouchvalleycntin[1] + 1 else thutouchvalleycntin[1];

def fritouchpeakin = if high_bar > 1 and ((high < high_bar and high >= touch_high_bar) or (close < high_bar and close >= touch_high_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def fritouchpeakcntin = if fritouchpeakin then fritouchpeakcntin[1] + 1 else fritouchpeakcntin[1];

def fritouchvalleyin = if low_bar > 1 and ((low > low_bar and low <= touch_low_bar) or (close > low_bar and close <= touch_low_bar)) and GetDayOfWeek(GetYYYYMMDD()) == 5 then 1 else 0;
def fritouchvalleycntin = if fritouchvalleyin then fritouchvalleycntin[1] + 1 else fritouchvalleycntin[1];

plot spxhigh = if high_bar < 1 then Double.NaN else high_bar;

spxhigh.SetDefaultColor(Color.GREEN);
spxhigh.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
spxhigh.SetLineWeight(2);

plot spxlow = if low_bar < 1 then Double.NaN else low_bar;

spxlow.SetDefaultColor(Color.RED);
spxlow.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
spxlow.SetLineWeight(2);

plot spxzero = if em_close < 1 then Double.Nan else em_close;

spxzero.setdefaultcolor(color.black);
spxzero.setpaintingstrategy(paintingstrategy.horizontal);
spxzero.setlineweight(2);

#
# Mark peaks & valleys with dots
#

plot peakArrow = if peak and show_high_dots then high else double.nan;

peakArrow.SetStyle(curve.POINTS);
peakArrow.SetLineWeight(3);
peakArrow.AssignValueColor(color.red);

plot valleyArrow = if valley and show_low_dots then low else double.nan;
valleyArrow.setstyle(curve.pointS);
valleyArrow.setlineweight(3);
valleyarrow.assignvalueColor(color.red);

plot touchpeakArrow = if touchpeak and show_touches_high_dots then high else double.nan;

touchpeakArrow.SetStyle(curve.POINTS);
touchpeakArrow.SetLineWeight(3);
touchpeakArrow.AssignValueColor(color.blue);

plot touchvalleyArrow = if touchvalley and show_touches_low_dots then low else double.nan;

touchvalleyArrow.SetStyle(curve.POINTS);
touchvalleyArrow.SetLineWeight(3);
touchvalleyArrow.AssignValueColor(color.blue);

#AddLabel(yes,"Warning-No Holiday Adjustment & Percent Occurance Calc Slightly #Understated (<1%)");
AddLabel(show_em_calc, "Last IV = " + ivGapHi);
AddLabel(show_em_calc, "Last EM = " + expmove);
AddLabel(show_em_calc, "Last High Bar = " + high_bar);
AddLabel(show_em_calc, "Last Low Bar = " + low_bar);
AddLabel(show_em_calc, "EM Skew%/Std Dev Adj(%)/Touches% = " + em_skew_percent + "/" + em_bandwidth + "/" + touches_percent);
AddLabel(show_highlow_detail, "Over EM Cnt/Avg=" + peakcnt + "/" + if peakcnt > 0 then peakamt / peakcnt else 0);
AddLabel(show_highlow_detail, "Over EM % " + if lastbar > 0 then peakcnt / lastbar * 100 else 0);
AddLabel(show_highlow_detail, "Under EM Cnt/Avg=" + valleycnt + "/" + if valleycnt > 0 then valleyamt / valleycnt else 0);
AddLabel(show_highlow_detail, "Under EM % " + if lastbar > 0 then valleycnt / lastbar * 100 else 0);
AddLabel(show_highlow_detail, "Bars=" + lastbar + " Weeks=" + weekcnt);

AddLabel(show_highlow_daily, "Mon Over EM Cnt/Avg=" + monpeakcnt + "/" + if monpeakamt > 0 then monpeakamt/monpeakcnt else 0);
AddLabel(show_highlow_daily, "Mon Under EM Cnt/Avg=" + monvalleycnt + "/" + if monvalleyamt > 0 then monvalleyamt/monvalleycnt else 0);

AddLabel(show_highlow_daily, "Tue Over EM Cnt/Avg=" + tuepeakcnt + "/" + if tuepeakamt > 0 then tuepeakamt/tuepeakcnt else 0);
AddLabel(show_highlow_daily, "Tue Under EM Cnt/Avg=" + tuevalleycnt + "/" + if tuevalleyamt > 0 then tuevalleyamt/tuevalleycnt else 0);

AddLabel(show_highlow_daily, "Wen Over EM Cnt/Avg=" + wenpeakcnt + "/" + if wenpeakamt > 0 then wenpeakamt/wenpeakcnt else 0);
AddLabel(show_highlow_daily, "Wen Under EM Cnt/Avg=" + wenvalleycnt + "/" + if wenvalleyamt > 0 then wenvalleyamt/wenvalleycnt else 0);

AddLabel(show_highlow_daily, "Thu Over EM Cnt/Avg=" + thupeakcnt + "/" + if thupeakamt > 0 then thupeakamt/thupeakcnt else 0);
AddLabel(show_highlow_daily, "Thu Under EM Cnt/Avg=" + thuvalleycnt + "/" + if thuvalleyamt > 0 then thuvalleyamt/thuvalleycnt else 0);

AddLabel(show_highlow_daily, "Fri Over EM Cnt/Avg=" + fripeakcnt + "/" + if fripeakamt > 0 then fripeakamt/fripeakcnt else 0);
AddLabel(show_highlow_daily, "Fri Under EM Cnt/Avg=" + frivalleycnt + "/" + if frivalleyamt > 0 then frivalleyamt/frivalleycnt else 0);

AddLabel(show_highlow_daily_inside, "Mon Within EM High Cnt/Avg=" + monpeakcntin + "/" + if monpeakamtin > 0 then monpeakamtin/monpeakcntin else 0);
AddLabel(show_highlow_daily_inside, "Mon Within EM Low Cnt/Avg=" + monvalleycntin + "/" + if monvalleyamtin > 0 then monvalleyamtin/monvalleycntin else 0);

AddLabel(show_highlow_daily_inside, "Tue Within EM High Cnt/Avg=" + tuepeakcntin + "/" + if tuepeakamtin > 0 then tuepeakamtin/tuepeakcntin else 0);
AddLabel(show_highlow_daily_inside, "Tue Within EM Low Cnt/Avg=" + tuevalleycntin + "/" + if tuevalleyamtin > 0 then tuevalleyamtin/tuevalleycntin else 0);

AddLabel(show_highlow_daily_inside, "Wen Within EM High Cnt/Avg=" + wenpeakcntin + "/" + if wenpeakamtin > 0 then wenpeakamtin/wenpeakcntin else 0);
AddLabel(show_highlow_daily_inside, "Wen Within EM Low Cnt/Avg=" + wenvalleycntin + "/" + if wenvalleyamtin > 0 then wenvalleyamtin/wenvalleycntin else 0);

AddLabel(show_highlow_daily_inside, "Thu Within EM High Cnt/Avg=" + thupeakcntin + "/" + if thupeakamtin > 0 then thupeakamtin/thupeakcntin else 0);
AddLabel(show_highlow_daily_inside, "Thu Within EM Low Cnt/Avg=" + thuvalleycntin + "/" + if thuvalleyamtin > 0 then thuvalleyamtin/thuvalleycntin else 0);

AddLabel(show_highlow_daily_inside, "Fri Within EM High Cnt/Avg=" + fripeakcntin + "/" + if fripeakamtin > 0 then fripeakamtin/fripeakcntin else 0);
AddLabel(show_highlow_daily_inside, "Fri Within EM Low Cnt/Avg=" + frivalleycntin + "/" + if frivalleyamtin > 0 then frivalleyamtin/frivalleycntin else 0);

AddLabel(show_touches_daily, "Mon Touches EM High/Low/Tot Cnt=" + montouchpeakcntin + "/" + montouchvalleycntin + "/" + (montouchpeakcntin+montouchvalleycntin));
AddLabel(show_touches_daily, "Tue Touches EM High/Low/Tot Cnt=" + tuetouchpeakcntin + "/" + tuetouchvalleycntin + "/" + (tuetouchpeakcntin+tuetouchvalleycntin));
AddLabel(show_touches_daily, "Wen Touches EM High/Low/Tot Cnt=" + wentouchpeakcntin + "/" + wentouchvalleycntin + "/" + (wentouchpeakcntin+wentouchvalleycntin));
AddLabel(show_touches_daily, "Thu Touches EM High/Low/Tot Cnt=" + thutouchpeakcntin + "/" + thutouchvalleycntin + "/" + (thutouchpeakcntin+thutouchvalleycntin));
AddLabel(show_touches_daily, "Fri Touches EM High/Low/Tot Cnt=" + fritouchpeakcntin + "/" + fritouchvalleycntin + "/" + (fritouchpeakcntin+fritouchvalleycntin));
AddLabel(show_touches_daily, "Total Touches EM High/Low/Tot Cnt=" + touchpeakcnt + "/" + touchvalleycnt + "/" + (touchpeakcnt+touchvalleycnt));

#
# diagnostic bubbles
#

AddChartBubble(peak and show_high_bubble, high + 1, "Peak Cnt=" + peakcnt + " Over Amt=" + (close - high_bar) + " Cum Over Amt=" + peakamt + " Highbar=" + high_bar, Color.WHITE);

AddChartBubble(valley and show_low_bubble, low - 1, "Valley Cnt=" + valleycnt + " Under Amt=" + (low_bar - close) + " Cum Under Amt=" + valleyamt + " Valleybar=" + low_bar, Color.WHITE);

#
# check em calc's
#

#AddChartBubble(yes, high + 1, "bar " + BarNumber() + "D=" + getdayofweek(getyyyymmdd()) + "Hbar " + high_bar + "iv " + imp_volatility() + " close " + close + " em " + expmove + " Lbar " + low_bar + " EMClose " + em_close, Color.WHITE);

#
# daily bar diagnostic section
#

#peak

#AddChartBubble(fripeak, high + 1, "Fri Over Count=" + fripeakcnt + "Fri Over Amt=" + (close - high_bar) + "Cum Fri Over Amt=" + fripeakamt + " Highbar=" + high_bar, color.white);
#AddChartBubble(thupeak, high + 1, "Thu Over Count=" + thupeakcnt + "Thu Over Amt=" + (close - high_bar) + "Cum Thu Over Amt=" + thupeakamt + " Highbar=" + high_bar, color.white);
#AddChartBubble(wenpeak, high + 1, "Wen Over Count=" + wenpeakcnt + "Wen Over Amt=" + (close - high_bar) + "Cum Wen Over Amt=" + wenpeakamt + " Highbar=" + high_bar, color.white);
#AddChartBubble(tuepeak, high + 1, "Tue Over Count=" + tuepeakcnt + "Tue Over Amt=" + (close - high_bar) + "Cum Tue Over Amt=" + tuepeakamt + " Highbar=" + high_bar, color.white);
#AddChartBubble(monpeak, high + 1, "Mon Over Count=" + monpeakcnt + "Mon Over Amt=" + (close - high_bar) + "Cum Mon Over Amt=" + monpeakamt + " Highbar=" + high_bar, color.white);

# valley

#AddChartBubble(monvalley, high + 1, "Mon Under Count=" + monvalleycnt + "Mon Under Amt=" + (low_bar - close) + "Cum Mon Under Amt=" + monvalleyamt + " Lowbar=" + low_bar, color.white);
#AddChartBubble(tuevalley, high + 1, "Tue Under Count=" + tuevalleycnt + "Tue Under Amt=" + (low_bar - close) + "Cum Tue Under Amt=" + tuevalleyamt + " Lowbar=" + low_bar, color.white);

#AddChartBubble(wenvalley, high + 1, "Wen Under Count=" + wenvalleycnt + "Wen Under Amt=" + (low_bar - close) + "Cum Wen Under Amt=" + wenvalleyamt + " Lowbar=" + low_bar, color.white);
#AddChartBubble(thuvalley, high + 1, "Thu Under Count=" + thuvalleycnt + "Thu Under Amt=" + (low_bar - close) + "Cum Thu Under Amt=" + thuvalleyamt + " Lowbar=" + low_bar, color.white);
#AddChartBubble(frivalley, high + 1, "Fri Under Count=" + frivalleycnt + "Fri Under Amt=" + (low_bar - close) + "Cum Fri Under Amt=" + frivalleyamt + " Lowbar=" + low_bar, color.white);

# touches

#AddChartBubble(touchpeak, high + 1, "Close=" +close + " High=" + high + " High_bar=" + high_bar + " Touches%=" + touches_percent + " EM=" + expmove + "EMclose=" + em_close +" High_Touch_Bar=" + touch_high_bar, Color.WHITE);

#AddChartBubble(touchvalley, low - 1, "Close=" + close + " Low=" + low + " Low_bar=" + low_bar + " Touches%=" + touches_percent + " EM=" + expmove + " Emclose=" + em_close+" Low_Touch_Bar=" + touch_low_bar, Color.WHITE);

https://tos.mx/0jq9r6h
Click to expand...
@agorena123 @horserider @BenTen @cos251 - Is it possible for a scanner to be made for this? I'm trying to catch stocks touching either the lower or upper expected move?
 
graci117 said:
@agorena123 Thank you for the post. Which video of TheoTrade are you referring above? Thanks!

Also, CRM crossed the 3 line. Any thoughts?
Click to expand...
@graci117 I'm not sure now on the TheoTrade video as he puts on out everyday, sorry.

I need to update the strategy for entry points as that seems to be the big weakness of the strategy. I've had a couple hit the STD lines and keep moving against me causing some losses.
 
bhaskar_madugula said:
What is the recommendation 3 SD or 2 SD or 1.5 SD? What if it goes beyond that SD by expiry?
Click to expand...
I was using the 1.5 as an alert then monitoring price to see if it would move higher to above the 2 or the 3. Most often I would take trades in between the 2 and 3 but as I mentioned in the post above, I did have a couple stocks that continued to move and I closed those positions at a loss. Working to come up with better entry system if possible.
 
agorena123 said:
I was using the 1.5 as an alert then monitoring price to see if it would move higher to above the 2 or the 3. Most often I would take trades in between the 2 and 3 but as I mentioned in the post above, I did have a couple stocks that continued to move and I closed those positions at a loss. Working to come up with better entry system if possible.
Click to expand...
You know I use this exact system for the past year but with signals off a daily chart. Its not perfect but win rate is pretty good. I would say about 70-80%. Not sure how you would improve on the entry signal but maybe to see if the RSI or MACD starts to cross up or down before you take it. I will try out the hourly signal as you have it as I think it can generate plays that are shorter in time but suggest you also look at doing off the daily as these would be higher probability of success given its stretched on a longer time frame.
 
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