Gap Up & Gap Down Scanner for ThinkorSwim

[Likos]

Prior the the "orb scanner" I think this is great but how about a gap potential or open window of opportunity. I've used the previous day closing gap but rather difficult to use since what's done is done leads to a 50/50 chance trade for opening new wedge gap

 

[K_O_Trader]

Here is another one too, they are both similar, just a little different here and there

# ATR Grid (ATR-Based Support & Resistance)
# Assembled by BenTen and @diazlaz at useThinkScript.com
# Converted from https://www.tradingview.com/script/EDN4oFyQ-ATR-0-5-0-7-ranges/

input lvl1 = 0.5;
input lvl2 = 0.7;
input daily_atr_len = 15;

input length = 15;
input AggPeriod = AggregationPeriod.DAY;
input averageType = AverageType.WILDERS;

def h = high(GetSymbol(), period = AggPeriod)[1];
def c = close(GetSymbol(), period = AggPeriod)[1];
def l = low(GetSymbol(), period = AggPeriod)[1];

def atr_func = MovingAverage(averageType, TrueRange(h, c, l), length);
def day_atr = atr_func;
def day_close = c;

plot p1 = day_close + day_atr;
p1.assignValueColor(COLOR.DARK_RED);
p1.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

plot p7 = day_close + day_atr * lvl2;
p7.assignValueColor(COLOR.RED);
AddCloud(p1, p7, COLOR.DARK_RED, COLOR.DARK_RED);
p7.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

plot p5 = day_close + day_atr * lvl1;
p5.assignValueColor(COLOR.RED);
AddCloud(p7, p5, COLOR.RED, COLOR.RED);
p5.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

plot m5 = day_close - day_atr * lvl1;
m5.assignValueColor(COLOR.GREEN);
#AddCloud(p7,p5,COLOR.GREEN, COLOR.GREEN);
m5.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

plot m7 = day_close - day_atr * lvl2;
m7.assignValueColor(COLOR.GREEN);
AddCloud(m7, m5, COLOR.GREEN, COLOR.GREEN);
m7.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

plot m1 = day_close - day_atr;
m1.assignValueColor(COLOR.DARK_GREEN);
AddCloud(m1, m7, COLOR.DARK_GREEN, COLOR.DARK_GREEN);
m1.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);

 

[supplydemandzones]

Thans. This is another problem I could not use these type of TOS link. Every time I click it asks me to install TOS in which already I have open in my computer. Is there any other way I can get the script or advise how to use this link while you already have TOS open. Thanks

You copy the link that was provided. Then go to your TOS platform. In the upper right corner, slick SETUP. Then select "Open Shared Item". Paste the link into the blank and it will load the study into your STUDY list. Then go to "Edit Study" to find and add that new study to your chart. The name of the new study is "From Average Daily Range May5th".

 

[heramone]

@K_O_Trader - what I found is different than your given picture. Sometimes the chart goes completely out of the high and low? I am using 5 minutes time frame but don't yet understand its benefit. On the other hand, the truetrade.net chart literally making a lot of sense. Pleae let me know if you find anything related to top/bottom with price action/ reverse . Thank you so much.

 

[TrueDepth]

"TrueTrader" is not using any indicator in the video you posted. He is just using clues to guess when it looks like it might reverse. If you see him using a magic top/bottom with price action/ reverse indicator, please do post a screenshot or a link.

 

[supplydemandzones]

@K_O_Trader - what I found is different than your given picture. Sometimes the chart goes completely out of the high and low? I am using 5 minutes time frame but don't yet understand its benefit. On the other hand, the truetrade.net chart literally making a lot of sense. Pleae let me know if you find anything related to top/bottom with price action/ reverse . Thank you so much.

Yes, sometimes the price action exceeds the boundaries. I'm sure that happens with TrueTrader too. The next step would be to have a SCAN so that we can look at surging stocks at the open and paper trade the moves for a while.

 

[supplydemandzones]

"TrueTrader" is not using any indicator in the video you posted. He is just using clues to guess when it looks like it might reverse. If you see him using a magic top/bottom with price action/ reverse indicator, please do post a screenshot or a link.

If u go to truetrader.net you will find video which shows several examples of his past live trades including chart screen shots.

 

[Prison Mike]

Just watched his video on the homepage. That style trading looks soooo stressful! Have fun with that

 

[supplydemandzones]

Just received an ad email from Truetrader that sheds some light on their strategy.... In this example they cited yesterday's high, and the ATR...

HEY! He says the ATR is 75 cents for SBH, so he may be setting the boundaries from the opening price??

 

[supplydemandzones]

Here is the upper part of the same email. In this SBH example, he waited for it to drop and went long using the ATR as a guide and knowing there was a big short position. Not sure why he did not short it at the peak... Also he says the ATR was 75 cents, so he uses that to some degree to judge the pull back level to go long?? I think?

The above email looks like he is referring to a trade he made THIS MORNING on SBH..

HEY, another clue. As with the email example on SBH, in some past example videos, like the one on DIS on 11/8/2019, the stock opened above the prior day high. This must be the criteria of his SCAN! The open must be higher than previous day high. Then use the ATR to mark the range from the open?? or previous high?? not sure how to place the ATR boundaries.

 

[Schminga]

I just noticed that his (Dan's) green buy arrow coincides at the same time BenTen's Market Mover Indicator crosses (RSI crosses above the 5 sma). . Changing the 5 sma to a 4 sma more closely approximates his green arrow! Adding the image now - thanks supplydemandzones. After further analysis, this RSI / SMA crossing could have easily been miss if the wrong zoom in was not in place. In even further analysis, playing around with the SMI, I noticed that if the SMA is changed to "2", the RSI / SMA crossovers on the Market Mover Indicator occur and are viewable WITHOUT having to manipulate the zoom as much as you have to with the 5 sma.

 

[BenTen]

@Schminga @supplydemandzones Please take a look at this thread if you want to upload images on our forum.

 

[heramone]

@Schminga - I am pretty sure that he is not using SMA or RSI related to any indicator. His scanner probably made using (MACD, RSI, SMA, EMA) them but it has something more than that. Remember it is all quick and out with big bucks.

 

[heramone]

@supplydemandzones - Thanks . I see that you been at the top of this. I feel we should team up here since we have many good writers in the group. The purpose of the team to break it down what exactly he does and how he does so that we can make a similar script for our own. Our six-month research investment could bring reward for the rest of life. my email is, rahikhan[at]gmail.com. Thanks

@BenTen and other Members - who want to be in the team to work together to breakdown the secret of True Trader Net. We need someone or some good scripts writer with knowledge of the day trade. A total of 6 people in the team to work together... please email me to start a discussion off the record.

 

[dreamscape25]

@K_O_Trader What are the rules here to this strategy?

 

[ajai]

Ok Guys,
I am True trader member .It is not as good as this above video makes it sound.Basic idea is as follows

You draw pivot lines(weekly to yearly)
At any time you see large percentage move in the stock towards a pivot point in a rapid fashion you go opposite.(both time and degree of advance is important)
This method fails if you catch a strong trending day.

This method should be part of your tool box for day trading.

 

[Piper2808t]

and the scanner?

 

[supplydemandzones]

Received an ad email from TrueTrader which provided this past video by co-trader to Dan. He gives out some pointers. One is that he does not trade every day for futures. Instead he waits for extreme position volatility so that his probability of a profitable trade is higher.

...

 

[supplydemandzones]

Pivot lines, not ATR?

He starts discussing actual trades in this video at about 11:15 mark. He repeated says he waits for trades to come to him. He may have only one trade for a given day, but that's fine. Some traders have only 2 trades in a week. Don't work to make a trade every day. Sometimes the set up occurs in the first hour, but sometimes in the last hour. He does not recommend sitting and waiting in between those hours. Wasted time, and hard on your butt! The set up has to occur WITH NO CATALYST GOING ON. No conf call, no news, no product news, no regulatory news, etc. This lack of catalyst is what allows for extreme surges to come back to the mean. If there is a sudden move during the middle of trading day, he suspects there is likely a catalyst known. You have to take that into account in subsequent surges at end of day or next start of day.... be careful. He even says YOU SHOULDN'T EVEN BE TRADING IN THE MIDDLE OF DAY ON THESE SURGES. He admits that a trading strategy success may stop working. He's had success with a strategy that stopped working and he subsequently lost a lot of money when he tried to continue to use the same past successful strategy... But he thinks this first hour and last hour FEAR and GREED based strategy has been more successful. He repeats that a trader new to this strategy SHOULD NOT BE TRADING IN THE MIDDLE OF DAY. He says "ALWAYS, ALWAYS, ALWAYS ASK YOURSELF: Where it the stock coming from and how fast??" The example with CVX, at about 28:00 mark, he showed a drop from $78 to $74 in about 30 minutes in the middle of day. His experience allowed him to take a rebound trade from the $74 to profit about $2/sh. But he does not recommend such mid-day trading for traders new to this surging price and reversion action because many times some catalysts is released and that can screw the price reversion action.

 

[supplydemandzones]

For intraday trading: only intraday trade if there is NO CATALYST going on!! He also uses the SP500 charts has an overall guide to what to expect from individual stocks. He said the boundaries are "monthly, quarterly, and weekly" lines. Pivot Points?? Don't turn an intraday trade into an overnight, or few days or longer kind of trade. Set your price to get it, and get out at your preset price. 3:1 or minimum 2:1, reward:risk ratio. Does NOT use moving average line, does NOT use VWAP either. He will use previous trading day's support as another buy opportunity. But he does not trade during the pre-hours in between. He WILL use the pre-hours to determine where the share price action is coming from as the day begins regular hours grading. He gives good example with ZM which is about 43 minutes mark.

 

[supplydemandzones]

He said to know your prior day high... it can be institutional supply level... AGAIN, he repeats, would we short if the ZM share price surged to the possible short level ON CATALYTIC NEWS such as a big contract for services??? N.O. NO! Never take a position if there is catalyst news that can change FEAR and GREED balance. Likewise, would we buy long at the possible long zone shown if there was catalystic bad news??? Again, NO? So you must have your news open to real time news for every stock you are stalking. He said this is why we trade in the first hour or last hour intraday. There is seldom news released after the open in the first hour or last hour. It may have news pre-hours which changes our plans for opening a position when market opens, but if no prehours news, then not likely to have any in the first few minutes of market open.

Summary: Know the yesterday's high and lows, know the prehours price actions to determine where is share price "coming from" as the market opens and the price surges in a direction. Maker sure your are always watching for news which may have been release after close of yesterday or in prehours. It may cause you to abort trading plans.

https://imgur.com/a/xABvbCH