MACD with Bollinger Bands Indicator for ThinkorSwim

[BenTen]

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.

 

[vijayonline]

Hi @BenTen thanks for sharing this indicator.. is there any way for you to write the code to add green or red arrow on the main chart to indicate bullish and bearish

 

[BenTen]

@vijayonline Tell me the condition for bullish and bearish. I can take a look.

 

[vijayonline]

@BenTen bullish alert on the main chart when the dots on MACD signal line turns is white and the signal line is move upper band of BB, bearish alert on the main chart when the dots on MACD signal line turns iso red and MACD signal line is below the lower band of BB

 

[BenTen]

@vijayonline Here you go:

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

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);

def MACD_Dots = MACD_Data;
def MACD_Line = MACD_Data;

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

def red_cond = !MACD_Line > MACD_Line[1];
def cond1 = MACD_Line > MACD_Line[1] and MACD_Line > BB_Upper;
def cond2 = red_cond and MACD_Line < BB_Lower;

# Plot Signals
plot bullish = cond1;
bullish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
bullish.SetDefaultColor(Color.GREEN);
bullish.SetLineWeight(1);
plot bearish = cond2;
bearish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
bearish.SetDefaultColor(Color.RED);
bearish.SetLineWeight(1);

 

[vijayonline]

Thanks @BenTen for the quick response however there seem to be some problem its plotting green arrows continuously when the macD signal line stays above the upper BB also I see the bearish signal might need some work

 

[BenTen]

@vijayonline I'm just following the conditions above. Feel free to point out what needs to change. If you can, please post some screenshots of your idea as well.

 

[Filmic]

@BenTen Hello, you said that it is up for interpretation but I am curious how do the bollinger bands and the MACD line relate to each other? Thank you.

 

[BenTen]

@Filmic Same concept as how you would use bollinger bands on your price chart.

 

[germanburrito]

@s1111 added red bands to keep yo out of the bollinger if you like.

# TS_MACD_BB
# By Eric Purdy, ThinkScripter LLC
# [URL]http://www.thinkscripter.com[/URL]
# [EMAIL][email protected][/EMAIL]
# 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);


AddCloud( bb_Upper, bb_Lower, Color.light_RED );

 

[Deltapants]

Do the tickers in the watchlist change based on scan results or are they always the same tickers? Thanks, everyone for putting this together

 

[s1111]

Do the tickers in the watchlist change based on scan results or are they always the same tickers? Thanks, everyone for putting this together

You can change them to whichever has the highest number to stay on top of the watchlist. I have my watchlist to show the highest amount change .

 

[Deltapants]

You can change them to which every has the highest number to stay on top of the watchlist. I have my watchlist to show the highest amount change .

I mean do the stocks change. Like is this a scan based watchlist or just names you like? Do you trade this intraday what is the exit?

 

[s1111]

I mean do the stocks change. Like is this a scan based watchlist or just names you like? Do you trade this intraday what is the exit?

Stock changes from first to whatever many I have on my watchlist depending on the bb number. I have it set to 10 min time frame. I'm new to trading , I'm learning to scalp options.

I'm following his technic, works great. I just need to learn to wait for the right setup and not rush lol.
https://usethinkscript.com/threads/...s-bb-indicator-for-thinkorswim.287/post-43308

 

[SAA448]

@BenTen Hi, would it be possible to shed some light on how this indicator (MACD & BB) could be used the best way? your thoughts/inputs on where to enter/exit will be much appreciate it.

 

[MerryDay]

@SAA448 Over 6million results to your question on Google https://www.dailyfx.com/education/b...ndicator supports the,(expansion of the band).

 

[RickK]

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

 

[s1111]

I like the way your BB line looks with green gray and red . I have been using @germanburrito script. https://usethinkscript.com/threads/...s-bb-indicator-for-thinkorswim.287/post-43812

I like the way it looks , my kids says its a road lol. Is there something you can code where everything same with @germanburrito script but add your bb style? Thanks in advance @RickK

 

[RickK]

I like the way your BB line looks with green gray and red . I have been using @germanburrito script. https://usethinkscript.com/threads/...s-bb-indicator-for-thinkorswim.287/post-43812
I like the way it looks , my kids says its a road lol. Is there something you can code where everything same with @germanburrito script but add your bb sytle? Thanks in advcance @RickK

Sure @s1111. I like that. Just find the section in the @germanburrito script that looks
like this:

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);

..... and replace all that with the following code:

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] 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);

.
Notice in the new code that the MACD_Line has to be greater "or equal" (or less than "or equal") whereas the dots must be completely greater (or less than). If zoomed in enough, a green line preceding a green dot could give you a heads up that a good signal is coming.

 

[germanburrito]

I like the way your BB line looks with green gray and red . I have been using @germanburrito script. https://usethinkscript.com/threads/...s-bb-indicator-for-thinkorswim.287/post-43812

I like the way it looks , my kids says its a road lol. Is there something you can code where everything same with @germanburrito script but add your bb style? Thanks in advance @RickK

# 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(1);


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);

AddCloud( bb_Upper, bb_Lower, Color.light_RED );
### END