Moving Average Scalping Strategy For ThinkOrSwim

[UpTwoBucks]

Welcome to our ThinkScript tutorial where we explore the critical importance of creating custom buy and sell indicators based on your own unique trading strategy. In this video, we delve into the world of ThinkScript, a powerful scripting language used within ThinkorSwim, and discover how you can leverage its capabilities to gain a competitive edge in the financial markets.

# Created by Ricky_Gaspard 7-16-2023
#Buying and Selling Indicator Arrows for Scalping

# Buying Conditions

def buycondition1 = SimpleMovingAvg("length" = 5)."SMA" is greater than MovAvgExponential("length" = 10)."AvgExp" and MovAvgExponential("length" = 5)."AvgExp" is greater than MovAvgExponential("length" = 10)."AvgExp" and MovAvgExponential("length" = 5)."AvgExp" crosses above SimpleMovingAvg("length" = 5)."SMA";

#def buycondition2 =

#Selling Conditions

def sellcondition1 = MovAvgExponential("length" = 5)."AvgExp" crosses below MovAvgExponential("length" = 10)."AvgExp";

#def sellcondition2 =

#Determies Conditions of an UP Arrow

plot bullish = if buycondition1 then 1 else 0;

#Determies Conditions of a Down Arrow

plot bearish = if sellcondition1 then 1 else 0;

#Paints Up Arrow On Chart

bullish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);

#Sets Default UP Arrow Color

bullish.SetDefaultColor(Color.white);

#Paints Down Arrow On Chart

bearish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);

#Sets Default Down Arrow Color

bearish.SetDefaultColor(Color.WHITE);

#Sets Thickness of Arrows

bullish.SetLineWeight(3);
bearish.SetLineWeight(3);

Current DeskTop: http://tos.mx/61uIJpH

 

[mailbagman2000]

Have you tried a P/L with different Moving Averages? Some stocks respond better with different averages.

 

[UpTwoBucks]

Have you tried a P/L with different Moving Averages? Some stocks respond better with different averages.

Absolutely. I don't think there is anything i haven't tried. I've been trading since 1990. This video was a request to show a simple method to build an indicator without knowing ThinkScript coding.

 

[jhorton56]

Ricky, this snip is from SPY on Friday, 12/22. I'm curious why no signal occurred at the sudden turn back up at around 1:30.

 

[UpTwoBucks]

Ricky, this snip is from SPY on Friday, 12/22. I'm curious why no signal occurred at the sudden turn back up at around 1:30.

We are having some issues with indicators and scans and the migration from TD Ameritrade to Schwab. Some things I can't control. Keep an eye on it and keep me informed. I was logged out twice from Thinkorswim for some unknown reason. Really weird things happening to some of us. I was told I'm not migrating until spring. Hopefully this will be over soon.

 

[MerryDay]

Ricky, this snip is from SPY on Friday, 12/22. I'm curious why no signal occurred at the sudden turn back up at around 1:30.

@UpTwoBucks
The simple moving average will mirror the exponential moving average when price movement is within the normal distribution.

The premise of this indicator is that a cross between the sma5 and the ema5 signals an increase in momentum and a reversal of direction. Given that the ema5 is weighted more toward the recent bar activity.,


The problem with your "missing signal", is that Friday was a light trading day, momentum was a struggle to achieve. Therefore, as you can see from the linked chart:
the sma5 & the ema5 did not stray outside the normal curve; meaning that they did not cross at the reversal point and therefore no signal materialized.

shared chart link: http://tos.mx/2t7FWxd Click here for --> Easiest way to load shared links

 

[jhorton56]

@UpTwoBucks
The simple moving average will mirror the exponential moving average when price movement is within the normal distribution.

The premise of this indicator is that a cross between the sma5 and the ema5 signals an increase in momentum and a reversal of direction. Given that the ema5 is weighted more toward the recent bar activity.,


The problem with your "missing signal", is that Friday was a light trading day, momentum was a struggle to achieve. Therefore, as you can see from the linked chart:
the sma5 & the ema5 did not stray outside the normal curve; meaning that they did not cross at the reversal point and therefore no signal materialized.

shared chart link: http://tos.mx/2t7FWxd Click here for --> Easiest way to load shared links

I thought about that a while after I posted my query and drew the lines in just like you have above. It was clear to me then the dip was an anomaly that didn't cause the lines to cross, thus no signal. Thanks for getting back to me so quickly,

 

[Mattyb740]

Absolutely. I don't think there is anything i haven't tried. I've been trading since 1990. This video was a request to show a simple method to build an indicator without knowing ThinkScript coding.

I know and understand everyone is different , but I like to ask questions to those that have experience. With that said, have you found yourself favoring ema indicators in your code/studies/indicators better than x# sma?