HOT ZONE - RSI with IV Percentile: Buy Stock or Sell Put Options Signal For ThinkOrSwim

The Hotzone indicator is awesome. Thank you for sharing.

I'm hoping someone can help me set up an indicator column on my watchlist that can pick up whether an up or down arrow appears. This would help me locate potential trades quicker, as I have an extensive watchlist. Thanks so much for your help!
 
The Hotzone indicator is awesome. Thank you for sharing.

I'm hoping someone can help me set up an indicator column on my watchlist that can pick up whether an up or down arrow appears. This would help me locate potential trades quicker, as I have an extensive watchlist. Thanks so much for your help!
I'm using this column watchlist that shows if it has a caution or hot dot. You may need to adjust the timeframe. http://tos.mx/7xnuODR
 
@everyone

What are best recommended setting you like? When I changed the setting from simple to exponential or from close to vwap, arrows appearance changed. So far i don't get the best recommended as I'm still testing
 
@everyone

What are best recommended setting you like? When I changed the setting from simple to exponential or from close to vwap, arrows appearance changed. So far i don't get the best recommended as I'm still testing
May take a while with real world testing to see what works "best" or gives any kind of edge, but I bet you'll find that the default settings he put work just fine. Remember, that RSI is by default based on the wilders average and that things generally end up being self-fulfilling prophecies when everybody is looking at the same thing.
 
Just realized while experimenting with this that the hotzone basically moves like an inverted WilliamsVixFix. Just eyeballing, not even looking at the calculation of either.
 
Last edited:
Any updates on how this has been working out as a scan or just the indicators? I've been working on some other projects and haven't really had a chance to pay attention (let us know the timeframe you've been using it on)
 
Any updates on how this has been working out as a scan or just the indicators? I've been working on some other projects and haven't really had a chance to pay attention (let us know the timeframe you've been using it on)
I like the 15, 30, and 1 hour timeframe.
 
Hi guys. So white line is Rsi but what is pink/magenta line and what does it mean if it goes to Zero mark or below 30?

For example /ES now pink line is at ZERO on 5 min chart
 
Firstly - this is AMAZING work @chewie76 , thank you for sharing your work.

A favor - could someone please post the script to the watchlist column. The import does not work for me I'm going to add it manually.

Thanks
 
@Robster021

Code:
#HOTZONE LINE: WATCHLIST COLUMN
#developed by Chewie76 with help from FateOwnzYou 9-30-2020

### Global Variables ###

input length = 14;
input price = close;
input averageType = AverageType.WILDERS;

def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

def RSI = (50 * (ChgRatio + 1)) * -1;
def MiddleLine = 0;
def TakeProfit = 60;
def BUY = -60;
def vol = imp_volatility();
input TimePeriod = 252;

def data = if !IsNaN(vol) then vol else vol[-1];
def hi = Highest(data, TimePeriod);
def lo = Lowest(data, TimePeriod);
def Percentile = ((data - lo) / (hi - lo) * 100) * -1;
def lowend = Percentile < 25;
def highend = Percentile > 50;

plot HotZone = Percentile - RSI;

def H = HotZone < -60;
def C = HotZone < -45 and HotZone > -60;

AddLabel(yes, if H then “HOT” else if C then "CAUTION" else " ", if H then color.RED else if C then color.YELLOW else Color.BLACK);

AssignBackgroundColor(if H then color.RED else if C then color.YELLOW else color.black);

Code:
#HOTZONE-RSI: RSI-IV_percentile indicator
#developed by Chewie76 9-30-2020
### Global Variables ###
input length = 14;
input over_Bought2 = 80;
input over_Bought = 70;
input over_Sold = 30;
input over_Sold2 = 20;
input price = close;
input averageType = AverageType.WILDERS;
input showBreakoutSignals = yes;

### RSI ###
def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

DEF RSI = 50 * (ChgRatio + 1);
def MiddleLine = 50;

def OverSold = over_Sold;
def OverBought = over_Bought;
def UpSignal = if RSI crosses above OverSold then OverSold else Double.NaN;
def DownSignal = if RSI crosses below OverBought then OverBought else Double.NaN;

### IVPercentile ###
def vol = imp_volatility();
input TimePeriod = 252;

def data = if !isNaN(vol) then vol else vol[-1];
def hi = highest(data, TimePeriod);
def lo = lowest(data, TimePeriod);
def Percentile = (data - lo) / (hi - lo) * 100;
def lowend = Percentile < 25;
def highend = Percentile > 50;

input over_Bought1 = 98;
input over_Sold1 = 2;

#AddCloud(percentile, rsi, Color.RED, Color.CURRENT);

### Squeeze Relationship (RSI and IV) ###
def RSIIV = if percentile - RSI >= 40 and RSI < 32 then 1 else 0;
def HOT = if RSIIV then 50 else Double.nan;

def RSIIV1 = if (percentile - RSI >= 30 and RSI > 32 and RSI < 40, 1, Double.NaN);
def CAUTION = if RSIIV1 then 50 else Double.nan;

AddLabel(yes, if RSIIV then “HOT” else if RSIIV1 then "CAUTION" else " ", if RSIIV then color.RED else if RSIIV1 then color.YELLOW else Color.BLACK);

AssignBackgroundColor(if RSIIV then color.RED else if RSIIV1 then color.YELLOW else color.black);
 
Do we have this for mobile? I have tried just adding it as normal but the hot and caution dots appear very small regardless of settings-- so it's not really usable. If not no problem I will just keep using desktop app.
 
Do we have this for mobile? I have tried just adding it as normal but the hot and caution dots appear very small regardless of settings-- so it's not really usable. If not no problem I will just keep using desktop app.
Yes, you have to make the hot and caution into dots. They are lines by default in mobile.
 

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
376 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top