MACD with Bollinger Bands Indicator for ThinkorSwim

[Hypoluxa]

I know you have specific ones for amazon but do you have a generic one to use with the Macd BB 2,6,10tf strategy you have here. If you also have a specific one for spy that would be nice @Hypoluxa

No, Sorry I don't. I'm SPX and AMZN only.

 

[salehz94]

You’re welcome!
No, I’ve never tried a timeframe that high. To be honest, I finally made myself move up to 10 mins just a couple of months ago. Lol

Do you still use the 2,6,10min for spx and amazon or just stick to the 10min? @Hypoluxa

 

[Hypoluxa]

Do you still use the 2,6,10min for spx and amazon or just stick to the 10min? @Hypoluxa

just 10mins....I've yet to find a good consistent tweak to the setup for anything less.

 

[omgitschester]

So about the watchlist scan for the MACDBB, i tried the previous code that was posted in the thread but its not working for me, condition wise.

I would like to scan for the tickers that crossed the zero line with one dot above or below.

Sorry guys, i dont code but thanks for all the info!

 

[MerryDay]

@omgitschester "not working for me" is not enough detail about whatever issue you are facing for anyone to help you.
Here is the scan that you described. It does work.

HTH

 

[CaptainCrunch]

This indicator (most people called it MACD BB) plots MACD along with the Bollinger Bands as a lower study on your ThinkorSwim chart. The usage is fairly simple and up for interpretation. You can use it to identify short term trends or search for squeeze.

thinkScript Code

# TS_MACD_BB
# By Eric Purdy, ThinkScripter LLC
# http://www.thinkscripter.com
# [email protected]
# Last Update 07 Feb 2011

declare lower;

input price = close;
input BBlength = 10;
input BBNum_Dev = 1.0;
input MACDfastLength = 12;
input MACDslowLength = 26;
input MACDLength = 5;

def MACD_Data = MACD(fastLength = MACDfastLength, slowLength = MACDslowLength, MACDLength = MACDLength);

plot MACD_Dots = MACD_Data;
plot MACD_Line = MACD_Data;

plot BB_Upper = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).UpperBand;
plot BB_Lower = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).Lowerband;
plot BB_Midline = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).MidLine;

BB_Upper.SetDefaultColor(Color.GRAY);
BB_Lower.SetDefaultColor(Color.GRAY);
BB_Midline.SetDefaultColor(Color.GRAY);
BB_Midline.SetStyle(Curve.SHORT_DASH);

MACD_Line.SetDefaultColor(Color.WHITE);

MACD_Dots.SetStyle(Curve.POINTS);
MACD_Dots.SetLineWeight(2);
MACD_Dots.AssignValueColor(if MACD_Line > MACD_Line[1] then Color.White

else Color.DARK_RED);

plot zero = 0;
zero.AssignValueColor(if MACD_Line < 0 then Color.RED else Color.GREEN);
zero.SetLineWeight(2);

Shareable Link

https://tos.mx/fK5Zaj

Note: The default Bollinger Bands indicator in ThinkorSwim uses the 20 Simple Moving Average with 2.0 Standard Deviation. If you want to keep it that way make sure you adjust the settings for this indicator.

Hello, thank you so much for this indicator, it’s very accurate.
I’m trying to understand the code, but I don’t see how you use the
input price = close;
I understand that it’s the current price of the stock, but I don’t see the price referenced anywhere else in the code. Am I missing something?

 

[MerryDay]

@CaptainCrunch input price = close; Is a standard line in TOS studies. Thus when customizing a study, it will usually show up.
If you are eliminating unneeded lines in a study that you are using; feel free to attempt to cut that code.

If you get no error msgs then it was extraneous. If an error msg occurs, paste it back in.
I did most of my learning of scripting in this matter.

 

[CaptainCrunch]

@CaptainCrunch input price = close; Is a standard line in TOS studies. Thus when customizing a study, it will usually show up.
If you are eliminating unneeded lines in a study that you are using. Feel free to attempt to cut that code, if you get no error msgs then it was extraneous. If an error msg occurs, paste it back in. I did most of my learning of scripting in this matter.

Got it, thank you!

 

[iSul]

Ben...you're a genius with this indicator! I've been testing it for a week or so and put it to use this week. I've tweaked it with different timeframes 2/6/10 and each has a different setting since it needs to adjust for those timeframes - 2min is 20, 6min is 15 and the 10min is 12. For a put...I wait until all 3 have crossed below the bottom line of the Bollinger band and for a call all 3 need to be above the top line of the Bollinger band, I also use the MACD histogram for additional confirmation - that is set to 48/104/36 on each timeframe.

I'm 3 for 3 this week for $7500 profit. This indicator has made me become very patient, by waiting for the "perfect" moment when they have all crossed over.

Thank you for having the ability to see that indicators like this would be helpful!

Can anyone show me those lines ( For a put...I wait until all 3 have crossed below the bottom line of the Bollinger band and for a call all 3 need to be above the top line of the Bollinger band, ) ..

I mean the bottom line of the Bollinger and the top line of the Bollinger band

 

[Hypoluxa]

Can anyone show me those lines ( For a put...I wait until all 3 have crossed below the bottom line of the Bollinger band and for a call all 3 need to be above the top line of the Bollinger band, ) ..

Take a look at the strategy I posted back in January. I use these bands, but made adjustments to it.
https://usethinkscript.com/threads/spx-trading-strategy-for-thinkorswim.5087/

 

[s1111]

Can anyone show me those lines ( For a put...I wait until all 3 have crossed below the bottom line of the Bollinger band and for a call all 3 need to be above the top line of the Bollinger band, ) ..

The line he's talking about is 0 line .

 

[2pointcorrelation]

@BenTen. Hi Ben, I have been wandering in this forum for some time. This MACDBB is simple enough for me to understand 90% of it. There is one line I don't understand, i.e.
"MACD_Dots.AssignValueColor(if MACD_Line > MACD_Line[1] then Color.White"

This condition statement is important for interpretation. What is the meaning of MACD_Line[1] in trading?

From the coding standpoint, MACD_Data is taken from MACD_Data, and MACD_Data is an array returned from the MACD subroutine. So MACD_Line[1] would be the first element of the array. Would MACD_Line[1] change from time to time if I change time range?

Thanks!

 

[rad14733]

@BenTen. Hi Ben, I have been wandering in this forum for some time. This MACDBB is simple enough for me to understand 90% of it. There is one line I don't understand, i.e.
"MACD_Dots.AssignValueColor(if MACD_Line > MACD_Line[1] then Color.White"

This condition statement is important for interpretation. What is the meaning of MACD_Line[1] in trading?

From the coding standpoint, MACD_Data is taken from MACD_Data, and MACD_Data is an array returned from the MACD subroutine. So MACD_Line[1] would be the first element of the array. Would MACD_Line[1] change from time to time if I change time range?

Thanks!

The [1] is an index which points to the previous value... By comparing the current value to the previous value it is possible to determine trend, up or down, and color accordingly... By examining the code snippet below you'll see that the MACD_Data variable has been reassigned for formatting purposes further down in the code...

def MACD_Data = MACD(fastLength = MACDfastLength, slowLength = MACDslowLength, MACDLength = MACDLength);

plot MACD_Dots = MACD_Data;
plot MACD_Line = MACD_Data;

 

[Britt95]

Thank you very much @BenTen for posting this and @Hypoluxa for sharing your strategy. It looks pretty solid.

I've been monkeying around with it today and became inspired. I'm generally a scalper, so I modified the color settings in the script a bit to guide me. Possibly it could help you or someone else here. It has a bit of a "don't diddle in the middle" vibe.

Edit: Since I posted this, I've made another addition. It is a cloud that displays when there is a standard bollinger/kelter squeeze (aka ttm_squeeze) going on. Just another confirm/deny layer. The new code is now displayed below but it is not displayed in the image shown.

# TS_MACD_BB

# By Eric Purdy, ThinkScripter LLC

# http://www.thinkscripter.com

# [email protected]

# Last Update 07 Feb 2011

# modification to color scheme by Rick_K 12/26/20.


declare lower;


input price = close;

input BBlength = 10;

input BBNum_Dev = 1.0;

input MACDfastLength = 12;

input MACDslowLength = 26;

input MACDLength = 5;


def MACD_Data = MACD(fastLength = MACDfastLength, slowLength = MACDslowLength, MACDLength = MACDLength);


plot MACD_Dots = MACD_Data;

plot MACD_Line = MACD_Data;


plot BB_Upper = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).UpperBand;

plot BB_Lower = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).Lowerband;

plot BB_Midline = reference BollingerBands(price = MACD_Line, length = BBlength, Num_Dev_Dn = -BBNum_Dev, Num_Dev_Up = BBNum_Dev).MidLine;


BB_Upper.SetDefaultColor(Color.CYAN);

BB_Lower.SetDefaultColor(Color.CYAN);

#BB_Midline.SetDefaultColor(Color.GRAY);

#BB_Midline.SetStyle(Curve.SHORT_DASH);


#MACD_Line.AssignValueColor(if MACD_Line > MACD_Line[1] then color.green else color.red);

MACD_Line.AssignValueColor(if MACD_Line > MACD_Line[1] and MACD_Line >= BB_Upper then Color.GREEN else if MACD_Line < MACD_Line[1] and MACD_Line >= BB_Upper then Color.DARK_GREEN else if MACD_Line < MACD_Line[1] and MACD_Line <= BB_Lower then Color.RED else if MACD_Line > MACD_Line[1] and MACD_Line <= BB_Lower then Color.DARK_RED else Color.GRAY);

MACD_Line.SetLineWeight(1);


#MACD_Dots.AssignValueColor(if MACD_Line > MACD_Line[1] then Color.green else Color.RED);

MACD_Dots.AssignValueColor(if MACD_Line > MACD_Line[1] and MACD_Line > BB_Upper then Color.GREEN else if MACD_Line < MACD_Line[1] and MACD_Line > BB_Upper then Color.DARK_GREEN else if MACD_Line < MACD_Line[1] and MACD_Line < BB_Lower then Color.RED else if MACD_Line > MACD_Line[1] and MACD_Line < BB_Lower then Color.DARK_RED else Color.GRAY);

MACD_Dots.SetPaintingStrategy(PaintingStrategy.LINE_VS_POINTS);

MACD_Dots.SetLineWeight(2);


plot zero = 0;

zero.SetDefaultColor(Color.WHITE);

zero.SetStyle(Curve.SHORT_DASH);

zero.SetLineWeight(1);


## end original (modified) code




######Add Squeeze Cloud##########


###### Keltner Channels


input displace = 0;

input factor = 1.5;

input length = 20;

input averageType = AverageType.EXPONENTIAL;

input trueRangeAverageType = AverageType.EXPONENTIAL;


def shift = factor * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);

def average = MovingAverage(averageType, price, length);

def Avg = average[-displace];

def Upper_Band = average[-displace] + shift[-displace];

def Lower_Band = average[-displace] - shift[-displace];


######## Bollinger Bands

input BBLength2 = 20;

input Num_Dev_Dn = -2.0;

input Num_Dev_up = 2.0;

input bb_averageType = AverageType.SIMPLE;


def sDev = StDev(data = price[-displace], length = BBLength2);


def MidLine = MovingAverage(bb_averageType, data = price[-displace], length = BBLength2);

def LowerBand = MidLine + Num_Dev_Dn * sDev;

def UpperBand = MidLine + Num_Dev_up * sDev;


### end of script

AddCloud(if UpperBand <= Upper_Band and LowerBand >= Lower_Band then BB_Upper else BB_Lower,  BB_Lower,  Color.yellow);


### END

Hi @RickK thank you so much for posting this! Adding the color settings really helped me. I've been actively day trading this algorithm and it assists me on my exits (which saved me a lot of money in the long run!) I was wondering if there is a way to paint the candle sticks the same color as the MACD line? Meaning if the BollingerBandMACD indicator is showing red/gray/green, the candle sticks could reflect that as well?

 

[MerryDay]

@Britt95 Great minds think alike! I have been coloring my candles with this indicator and it works great!
Add the following code to the end of the study:

# ########################################################
DefineGlobalColor("LabelGreen",  CreateColor(0, 165, 0)) ;
DefineGlobalColor("LabelRed",  CreateColor(225, 0, 0)) ;
input paintbar = yes ;

AssignPriceColor(
if !paintbar then Color.CURRENT else
if MACD_Line > BB_Upper then GlobalColor("LabelGreen") else
if MACD_Line < BB_Lower then GlobalColor("LabelRed") else
Color.gray);

HTH

 

[petech]

This is a great indicator. It is very obvious it works really well by looking at past charts. Above the zero line, you want to buy above the BB, below the zero line you want to short below the BB.

 

[DudeDastic]

Ben...you're a genius with this indicator! I've been testing it for a week or so and put it to use this week. I've tweaked it with different timeframes 2/6/10 and each has a different setting since it needs to adjust for those timeframes - 2min is 20, 6min is 15 and the 10min is 12. For a put...I wait until all 3 have crossed below the bottom line of the Bollinger band and for a call all 3 need to be above the top line of the Bollinger band, I also use the MACD histogram for additional confirmation - that is set to 48/104/36 on each timeframe.

I'm 3 for 3 this week for $7500 profit. This indicator has made me become very patient, by waiting for the "perfect" moment when they have all crossed over.

Thank you for having the ability to see that indicators like this would be helpful!

Interesting strategy.

One question: does the zero line play any part in this?

 

[s1111]

Interesting strategy.

One question: does the zero line play any part in this?

Zero line plays a huge part, if you want good trade that moves it have to be over the zero line and under for puts.

 

[petech]

Is there a way to set up a scan with this indicator where the current dot above the zero line, be a white dot, but the proceeding dot being not white. The proceeding dot can be above, below, or at the zero line.

 

[yellowlogic]

it will not let me load a picture (and Yes I followed the instructions from this site) so I will try and explain what I am looking for help on this for. I wanted to know if anyone could help me with adding arrows. I would like a down arrow on the first dot after the green/yellow bullish dots. I not sure what color it is because I am colorblind. but after the bullish dots turn any color then the bullish color on the next dot show a down arrow. I also want a up arrow for the first dot after a red Dot (Bearish dots) that is no longer Red.


Thanks in advanced and thanks for the help everyone has given me on this site.