KevBOT's Unusual ATR + PA Bull Hunter For ThinkOrSwim

[kcasey1120]

//=========================================================
// THIS CHART ALERTS YOU WHEN
// ATR and PRICE-ACTION are RISING,
// (AND) THE ATR CROSSES FROM ITS LOWER-to-UPPER 'NORMAL 2-WEEK RANGE'
// AND THIS CHART MAKES IT EASY TO SEE IT ALL HAPPEN
//=========================================================

I am a scalp-trader mostly, and I run this on a 1-Min / 1-Day chart....

I have found it pairs well with the AsGoodAsItGets indicator packet, and of course BuyTheDip... and the other premiere indicators on this site.

you can find those here: https://usethinkscript.com/threads/agaig-daytrading-scalping-for-success-in-thinkorswim.20383/

NOTE: ONLY USE THIS INDICATOR TO (HELP CONFIRM), NOT AS A STANDALONE

ToS SHARED LINK (Try it out!) : http://tos.mx/!doyPvgbf

BACKGROUND: Came up with this new ToS Chart for myself, and thought I'd share it with you all here. I'm a programmer by trade and for years now I have enjoy trying out new scripts ideas in ToS. A friend of mine and I have been talking a lot about ATR and Price-Action strategies as of late.
Anyways, here's what I have so far. Much like it's creator, its a work in progress.

Enjoy.

CONCEPT GOAL: Develop 'One chart' that does all the following, while keeping it easy to read and use.
1) Plots the ATR, and color code it by its behavior versus its Price-Action

2) Display the '2-WEEK NORMAL RANGE' as a cloud behind the ATR plot (LIGHT GREY)

3) Display the '4-WEEK NORMAL RANGE' as a cloud behind the ATR plot (MEDIUM GREY)

4) [TOP BAR] Colored Label to show the 'Current BULLISH/BEARISH State', and for 'How Many Candles' it has been in that state.

5. [TOP BAR] Two 'White or Grey' Labels; Current 2-WEEK and 4-WEEK NORMAL RANGE position of the ATR

6) Add a VERY STRONG BUY INDICATOR represented by a vertical green-line.
This line only appears when the current BULL/BEAR state is 'STRONG BULLISH' and...
the ATR has moved from the LOW NORMAL 2-WEEK RANGE, into the UPPER NORMAL 2-WEEK RANGE.

(*** You might say this Very Strong Indicator is the not-so secret sauce of this chart.)

ATR Behavior	Price Behavior	Signal	Meaning
ATR rising	Price rising	Bullish confirmation	Strong bullish trend
ATR rising	Price falling	Bearish confirmation	Strong bearish trend
ATR falling	Price rising	Weak bullish move	Uptrend losing strength
ATR falling	Price falling	Weak bearish move	Downtrend losing strength

• DARK_GREEN ➔ Weak Bullish (Price ↑, ATR ↓)
• GREEN ➔ Strong Bullish (Price ↑, ATR ↑)
• DARK_RED ➔ Weak Bearish (Price ↓, ATR ↓)
• RED ➔ Strong Bearish (Price ↓, ATR ↑)

//=========================================================
// BELOW IVE ADDED SOME CONCEPTS FOR ANYONE NOT FAMILIAR
// WITH THE POWER OF ATR + PRICE-ACTION
//=========================================================

Rising Price + Rising ATR ➔ Bullish Strength

• Stock price is going UP.
• ATR is INCREASING (volatility is expanding with the move).
• ➔ This is strong bullish behavior.

Falling Price + Rising ATR ➔ Bearish Strength

• Stock price is going DOWN.
• ATR is INCREASING (bigger candles as it falls).
• ➔ This is strong bearish behavior.

Rising Price + Falling ATR ➔ Weak Bullish Move

• Price is going up... but ATR is FALLING.
• ➔ The move up is losing energy (warning sign for bulls).

Falling Price + Falling ATR ➔ Weak Bearish Move

• Price is dropping but ATR is also FALLING.
• ➔ The downtrend is running out of gas (warning sign for bears).

 

[netarchitech]

@kcasey1120:

This looks very interesting...I look forward to trying it out...

Thanks for sharing...

Good Luck and Good Trading