High and Low Reversals Indicator + Day Trading Strategy

BenTen

BenTen

Administrative
Staff
VIP
Wanted to share with ya'll a new indicator I just found called Regular Trading Hours High and Low Reversals. It was created by Mobius.



thinkScript Code

Rich (BB code):
# Regular Trading Hours High and Low Reversals
# Mobius
# V01.08.20.2018 Chat Room Request
# Alerts added by BenTen at useThinkScript.com

def h = high;

def l = low;

def c = close;

def x = barNumber();

def nan = double.nan;

def rth = getTime() >= RegularTradingStart(getYYYYMMDD()) and

          getTime() <= RegularTradingEnd(getYYYYMMDD());

def LOD = if rth and !rth[1]

          then l

          else if rth and l < LOD[1]

               then l

               else LOD[1];

def LOD_x = if l == LOD and rth

            then x

            else nan;

def LOD_h = if l == LOD

            then h

            else LOD_h[1];

plot LOD_h_line = if x >= highestAll(LOD_x)

                  then highestAll(if isNaN(c[-1])

                                  then LOD_h

                                  else nan)

                  else nan;

     LOD_h_line.SetDefaultColor(createColor(25,180,25));

     LOD_h_line.hideBubble();

     LOD_h_line.hideTitle();

def upBar = if c crosses above LOD_H_line and RTH

            then x

            else upBar[1];

plot ArrowUP = if x == highestAll(upBar)

               then l - (2*TickSize())

               else nan;

     ArrowUP.SetPaintingStrategy(PaintingStrategy.Arrow_UP);

     ArrowUP.SetLineWeight(3);

     ArrowUP.SetDefaultColor(createColor(25,180,25));

     ArrowUP.HideBubble();

     ArrowUP.HideTitle();

def HOD = if rth and !rth[1]

          then h

          else if rth and h > HOD[1]

               then h

               else HOD[1];

def HOD_x = if h == HOD and rth

            then x

            else nan;

def HOD_l = if h == HOD

            then l

            else HOD_l[1];

plot HOD_l_line = if x >= highestAll(HOD_x)

                  then highestAll(if isNaN(c[-1])

                                  then HOD_l

                                  else nan)

                  else nan;

     HOD_l_line.SetDefaultColor(createColor(75, 55, 175));

     HOD_l_line.HideTitle();

     HOD_l_line.HideBubble();

def dnBar = if c crosses below HOD_l_line

            then x

            else dnBar[1];

plot ArrowDN = if x == highestAll(dnBar)

               then h + (2*TickSize())

               else nan;

     ArrowDN.SetPaintingStrategy(PaintingStrategy.Arrow_DOWN);

     ArrowDN.SetLineWeight(3);

     ArrowDN.SetDefaultColor(createColor(75,55,175));

     ArrowDN.HideBubble();

     ArrowDN.HideTitle();

# Alerts
Alert(ArrowUP, " ", Alert.Bar, Sound.Chimes);
Alert(ArrowDN, " ", Alert.Bar, Sound.Bell);
# End Code

Shareable Link


High and Low Reversals Strategy for Day Trading

This indicator look for potential reversal after a stock just hit high of the day. It will tell you when to short via a down arrow. The purple line indicates where to cut your losses.

Rules:
  1. Buy when up or down arrow appears
  2. If any of the candles after the initial signal closed above the purple line then the reversal play is no longer playable. It's time to cut.

Examples:







I personally use this strategy on the 5 min. timeframe.

Happy trading.
 
Last edited:
N

NDN3531

New member
Thanks BenTen for sharing and Mobius...you are awesome!!!! Excited to test this via papertrade tomorrow!!!

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@NDN3531 No problem. Let me know how it goes for you.

 
Last edited:
Y

YaroslavG

New member
@BenTen hey Ben, thanks for this! I’m new to this forum... what platform do guys use to apply these scripts?

 
Last edited:
C

Chenthy73

New member
Interesting indicator which does not emit many signals which are GREAT. Will try it.

 
Last edited:
C

Chenthy73

New member
I tested 3 trades (MSFT call, JNJ call, CSCO call) this morning with TOS alerts of this indicator on 5 minute and had 2/3 win with overall win. I will continue to evaluate it and see how to best use it. I like the stop loss if close below or above the lines. It helps junior traders like me to stay disciplined to the plans spit out from this indicator. I do use other indicators such as EMA lines and pivot lines to help the win exit.


 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 Awesome. Thank you for keeping us updated. I played $GS this morning with the HiLo reversal and it turned out well. One thing I noticed is that you want to grab the contract when the stock price is close to the stop loss that way you can minimize your risk if it decided to break above it.

 
Last edited:
C

Chenthy73

New member
@BenTen I totally agreed. I played two more which I entered a little too much away from the stop loss line, both I had to cut loss once price close above/below. As you said, next time I will enter as close as possible.

In addition, I think the opening hour (and maybe the closing) hour probably offer the better opportunity and I should size accordingly to leverage those bigger moves during those periods.

Final point is that this indicator does not really leave the history between daily high and low, so I have to use TOS scan query alert so see how many alerts were actually generated - in other words, the actual alerts are more than those displayed on the diagram after day close. Overall, pretty good neat indicator.

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 Thanks for sharing again. So far im only being able to play one side which is put. I know you said you played calls this morning, how did that happen? As far as I remember I haven’t seen a bullish signal coming out of this indicator.

Secondly, im not getting the last part you mentioned. Mind explaining the “how many alerts” part?

 
Last edited:
C

Chenthy73

New member
I did get call alerts including the one I traded JNJ at 9:55 am 1/17/2019 today as attached. It should still be visible in your TOS as I still see it.


Regarding alerts, I use TOS "Market Watch" ->Alerts feature and created study-based alert for this high-low reversal indicator for a list of optional stocks/ETFs I am interested in. Then TOS will send me text messages, email and app push notifications. This way, I don't have to stare at the screen all the time. If you google TOS scan alert, you will see how you can set it up in TOS very simple.

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 Wow, I did not know about the scanner alert. Will definitely going to check it out tonight.

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 I noticed that you have pre-market on. I have it off. That's why I didn't see the potential call play.

 
Last edited:
C

Chenthy73

New member
Yes, at open this is doing something similar to your "enter when it breaks above pm high" method in your "Less is More" post.

 
Last edited:
C

Chenthy73

New member
@BenTen The TOS alert will skip a lot of names, but better than nothing. The list it monitors should focus on a neat short list or just too many alerts

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 Got it. Did you know that the scanner is delayed by 5 mins (i think thats the period)? Did your alert come from a scanner or specific alert?

 
Last edited:
T

Tesh01

New member
VIP
@BenTen Ben, please share how to set up the scan alert for every follower. Thanks !

 
Last edited:
C

Chenthy73

New member
@BenTen I am not TOS expert, but based on what I used, if you do not set offset in the study scan, then the alert could be within 5 minutes depending on when the TD TOS alert schedule runs.

Since many times stocks retest, we can wait for retest to enter near the stop loss line.



I think it makes sense to also refer to pivot points and boll band so that we do enter and then hit support and resistance immediately.

Again, I feel like 9:40 11:00 am and then 2:00-3:30 pm offer the best directional movements for trading using such indicator to work nicely. In the middle consolidation period, the margin of error is so small which makes trading using the indicator very hard esp. for names with wide spreads which need to be avoided I think.

 
Last edited:
BenTen

BenTen

Administrative
Staff
VIP
@Chenthy73 Amazing analysis. That's correct and I agreed with you. I use this for SPY and other big tech names. I would avoid day trading anything with a wide spread altogether.

 
Last edited:

Top